2012 ELECTION

[HairOfTheDog]

The scariest number in those charts is the fact that we borrowed 43% of the revenue needed to operate.

Imagine running your house or business like that.

Many companies operate kind of like that, they have a credit account at the bank that constantly changes, money goes in, money goes out there is never an overdraft. Schools do it all year. Not at 43% but usually at 12-20% sometimes its for payroll or insurance. Companies that do better at certain times of the year like a skiing school or resort. It is paid back with interest and they do not go under. With the government its "the skys the limit" approach because as a business the government is a monopoly in most aspects.

This is true. Many businesses and households live largely on credit that gets paid back (for some) later.

But, a business or household that is functioning in such a manner can't stay afloat for the long term without cutting inefficiency and spending, rather than (or along with) scurrying to find new income sources to chase increasing debt. Otherwise, it will go OOB or into bankruptcy eventually. Or, it will just keep borrowing until the debt is insurmountable and the lenders (and tax payers in the case of govt) push back and the operation collapses.

Our current government is not looking enough at reduction and solid future projections/planning, imo. We need to cut and privatize wherever possible (which means changing the expectation regarding some entitlements - unpopular, but mandatory imo).