When we budget for ourselves or our families, we look at how much money we make and how much we spend on things like rent, food, and utilities. Spend more than you bring in and some expenses might go on a credit card… realizing that we can’t borrow money forever.
But the federal government doesn’t seem to realize this…
Over the past 10 years, our debt has grown from $7.3 trillion to $17.3 trillion and grows every day. A $30,000 credit card balance at 18% interest would take us 451 years to pay off through minimum payments only and we pay $44,000 in interest alone. Government doesn’t pay 18% interest but it takes the same approach to our national debt and tacks on more debt each year.
Instead, it should take a cue from fiscally responsible Americans: lower overall spending and encourage economic growth through job creation.