Let's say you earn an even $100,000 per year, part of the 52% of Americans who pay taxes. You've got too much to qualify for food stamps or the Earned Income Tax Credit and other goodies, but you're not rich either, driving an old car, definitely no corporate jet waiting for you at the airport.
But wait, why are you driving an old car? Why not a BMW? You deserve it. And a Lexus for the missus? And a vacation in Hawaii? Cruise in Europe? You're wonderful, you deserve it all. Soon you're spending $150,000 per year. It's not hard, because you, not the bankers, set your own credit card limit.
After a couple years the missus gets nervous, says maybe, just maybe you should cut back. You're indignant: you have to have transportation, are you expected to drive an old clunker? And you need to relax; you'd be a nervous wreck without getaways to far-off places.
OK, you tell her, how about we cut back on our tips when we eat out? That'll save $10 per year. (This is the equivalent of eliminating the tax deduction for corporate jets, which was part of the Stimulus Bill and which Obama has hammered mercilessly, oh those fatcats in their private jets.)
The missus says that $10 is really, kinda, sorta insignificant compared to the $50,000 in new debt you're taking on every year. So at last you tell her you can embezzle $4,000 per year from your employer and cut your spending by $8,000, so you'll only slide $38,000 into the hole each year. You say all this with a great scowl, moaning about how hard it's going to be to reduce your standard of living so drastically. Then you tell her it was so much work calculating all those terrible cutbacks that you deserve a night out on the town to celebrate your newfound sobriety and prudence.
Tuesday, July 26, 2011
One Hell of An Analogy for the Budget Debate
Courtesy of Henry Percy, excerpt from his article "The Budget Crisis Explained to a Nineteen Year Old." Article found here at American Thinker.