I received an allowance as a kid. It was a reasonable weekly wage equivalent to the amount of chores I completed. Like clockwork, my dad handed me crisp bills every Friday night, usually after dinner, and I felt such satisfaction. I could do whatever I wanted with the money because I earned it.
When I went to the store and found a toy or a new bracelet I wanted to buy, I pulled open my wallet to see what I had. Too often a wave of disappointment came over me when I realized I didn't have enough. Back to the shelf that gold bracelet went. Even if I tried to pull the old "puhhlleeaassee!" with my parents, their response always included a certain four-letter word: save. You can't spend what you don't have. As much as I hated to hear it back then, I appreciate that lesson today.
It's unfortunate our members of congress didn't have parents who gave them an allowance to manage.
This week, the House approved a short-term $290 billion extension in the nation's debt ceiling, postponing a decision until February about a larger increase in the borrowing cap. Once the House realized that a larger increase may not pass the Senate because of a lack of support, they decided to pass a smaller increase for now. In February they will address a "need" for a larger increase, possibly the $1.8 Trillion increase in the ceiling House Majority Leader Steny Hoyer (D., Md.) wants.
This increase in the debt limit raises the total debt the federal government can hold to $12.394 billion from $12.104 billion. Okay, let's go back. Steny Hoyer wants to raise the debt ceiling by $1.8 Trillion ... $1.8 TRILLION. How can any country survive if it is trillions of dollars in debt? How does any average Joe survive if he is billions of dollars in debt? He doesn't. Average Joe knows he can't increase the limit on his credit card to buy a new plasma TV. If his credit card is maxed out, he must deal with that issue first before making a new purchase.
Anyone who has debt understands that you become a slave to those you owe money to. Someone will come after you if you don't pay. Not only is America in debt slightly over $12 trillion dollars, but our interest just on our debt alone is $367 billion. Whose coming after us, and when? The Wall Street Journal writes, "[i]ncreasing the debt ceiling is largely symbolic as the public debt is the accumulation of past deficits, or money already spent. But were the U.S. to breach its debt limit, it would default on its obligations, potentially lose its prized top-shelf credit rating and have to pay significantly higher interest to its creditors. Such a scenario, albeit an extremely unlikely one, would have tremendous ramifications for the wider financial markets."
Getting past the notion that the U.S. has a "top-shelf credit rating," I can't help but wonder why our government believes it is a good idea to spend more money we don't have. Average Joe can't do that, so why does the federal government? I understand I am taking a complex situation and simplifying it to compare with one person's financial lifestyle. But that's why I simplify it. Because it is that simple. Behind every decision lies a principle.
Don't spend what you don't have.
Don't borrow what you can't pay back. In fact, don't borrow more than you can pay back with your next paycheck.
Waste not, want not.
Congress is operating under an entirely different set of principles. Dangerous, frivolous, and destructive. One of my favorite principles is this: he who is faithful in little will be faithful in much. I would vote for Average Joe who balanced his checkbook and successfully managed his personal finances to handle the national budget over such characters as Hoyer, Pelosi and Reid. Just because they are "congressmen" and "senators" does not make them smarter than you or I. They have no right to run up our debt, borrow more than we can pay back and throw our children into financial bondage. We demonstrate daily in our personal finances that we are smarter than that.
Let congress prove they can one run program --one-- successfully, within budget, before we allow them to fiddle with health reform or any other massive program. Let's give them an allowance and see if they can be faithful in little before we give them much-- if at all.
Don't stare too long at this website, it will make you nauseous:
http://www.usdebtclock.org/
http://online.wsj.com/article/SB126099939736594429.html?mod=WSJ_hpp_sections_news
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