Age Old Debates – Chapter 2: The Deficit

Craig Zuckerman — Mon, 23 May 2011 19:50:33 +0000

US Representative Jim Jordan, Republican from Ohio says, “Spend what you take in. That’s what every family has to do.” (Yes, that quote is correct.) But wait, how many families in this country have a mortgage on their home? (Don’t forget, part of the mortgage you pay actually to REDUCES the principle, a concept unheard of in Washington). How many have a loan on their car? Let’s not forget those magic pieces of plastic in your wallet. And don’t many families contribute to their retirement plans?

That’s the problem with Washington these days (OK, years, decades…). They just don’t get it. What we should be doing on a personal level as well as a national level is spending BELOW our means. Take the Pittsburgh Pirates for example. Our friends at Deadspin revealed the financial statements of the Pirates, perennial cellar dwellers, team of The Cobra, spending less then they brought in (mostly due to revenue sharing from the Yanks). Imagine that? Maybe the Pirates are not a winning team, but at least they are not in danger of defaulting on debt like the Dodgers and Mets.

Here’s the magic formula: Tax Revenue minus Spending equals Deficit (or Surplus). And here’s my idea: Put the Democrats in charge of reducing spending. Put the Republicans in charge of increasing revenue. Make it a contest to see who can arrive at a bigger number.

Dick Cheney once said, “Reagan proved deficits don’t matter.” How can you argue with such logic?

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Age Old Debates – Chapter 2: The Deficit