What’s wrong with this analogy regarding the US federal budget and a household budget?
I think the analogy is apt for the point it’s trying to make. Namely that politicians are too cowardly to do what needs to be done, yet still pat themselves on the back for doing nothing.
Where the analogy breaks down (as all analogies do at some point) is calling the debt credit card debt. It would actually be more accurate to say that $20k is on a credit card and $120k is money they owe to their children. Still not a great situation but not as dire.
Agree on Paragraph 1.
Paragraph 2: Why do you type that the parents owe the 120k to the children? The kids didn’t lend the parents money. A little help over here … my brain has a case of the Sundays.
The citizens (children) loaned the government (family) money by buying treasuries.
My numbers are off – the $20k is more like what we owe to China not all foreign ownership. According to the internet, which is never wrong, foreigners own 30%, so the split would be morel like $50k credit card debt to $90k inter-family debt.
Ironically, the kids will pay off at least a portion of their own loans when they pay taxes–assuming “leaders” decide to pay off the some or all of the debt at some point.
Nothing like being both the creditor and the debtor.
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