Consumption Function: February 2009

Wednesday, February 25, 2009

Deficit vs. Debt

Lately I have been involved in several discussions about the National Debt and how it is very worrisome for many people.

When I comment that I am not at all worried about that right now, it makes people cock their head to the side and look at me like I am crazy.

So here is why. The federal budget deficit is what I worry about and what I really think everyone should be concerned with.

Think of the federal budget as your check book and the national debt as your credit card. You are paying for a lot of things with your check book, medicare, the Iraq war, state funds for education and infrastructure etc…. Lately you got some extra expenses (Iraq war) and took a pay cut (tax credits) so you can’t afford to pay all of your bills with your checkbook (federal budget). So you have a deficit and you have to use your credit card (national debt). This has been going on for quite a while so your credit card is about to be maxed out…oh and don’t forget all that interest you have to pay.

And as long as that checkbook stays in the negative you will have to conintue to use that credit card.

So the point I am trying to get across is that there is no point in even talking about the National Debt until the federal budget deficit is corrected.

Another reason I like President Obama is that he gets this.

"WASHINGTON – President Barack Obama has committed hundreds of billions of dollars to help revive the economy and is working on a plan to cut the federal deficit in half by the end of his first term."

He believes the budget deficit should still be tackled despite the need to spend money to stimulate the economy. The president has inherited an enormous deficit from his predecessor. The interest being paid this year on the deficit is costing the government about 250 billion dollars, three times what it spends annually on education.

The next couple of blogs will tackle what actually comprises the National Debt....where do we get all of that money!!!!!!!
Then I will talk about the stimulus package and how it is possible to actually get the budget deficit under control while still spending 700 billion on a stimulus package.

Sunday, February 22, 2009

Grammar

I posted a while ago that I was teaching English as a volunteer through a program at the library. What this has taught me is that I don't know grammar rules!!! At least not well enought to just spit them out when asked.

Try to explain to someone who has no context at all of what you are talking about the difference between -this-that-these-those or which-what-whose.

This girl is eager to learn so I have to get it right!!

I have found alot of sites that have helped right now this one is my favorite

http://www.edufind.com/english/grammar/TOC.CFM

Tuesday, February 17, 2009

The Stimulus

No one can say it quite like Bill.

"I find it amazing that the Republicans, who doubled the debt of the country in eight years and produced no new jobs doing it, gave us an economic record that was totally bereft of any productive result, are now criticising him (Obama) for spending money," Clinton told the CNN in an interview.

--This is some of what he is referring to.

The largest U.S. Embassy in the world is now built in Iraq, costing some claim $700 billion.

The cost of conducting the Iraq War approximately $10 billion a month.

The national debt clock reveals that the national debt has skyrocketed to $10,771, 107, 905 trillion.

George W. Bush has the dubious distinction of being the U.S. White House resident who catapulted the national debt to the highest in history, greater than all the other national debts combined since the U.S. was founded as a nation.