Articles

Does the U.S. need a budget?

In Uncategorized on December 17, 2011 by bearsearspatriots

Do you need a budget in your home or business?

            I think we would all agree that anyone who has a part in running a household or business knows that if you do not set a budget, the economic state of that household or business will soon be in a very poor state.

            We set monthly or annual budgets so that we will not pay out more than the amount of money we have coming in.  If there is no budget, there is, in essence, no limit on what we can spend or where we spend it, especially when we can use credit whenever we think we need or want something at that moment.  It becomes too easy, and over time, we becomes less and less concerned about how we’ll pay it back, and ignore the reality that we are just getting deeper and deeper in debt.

            This has been the downfall of many a business and household.

            Many families and businesses have realized the danger of just putting whatever they want on a credit card, and then doing without the things that they really need to pay off their enormous debt.  These families and businesses have realized they MUST set a budget and stick to it or suffer financial devastation.

            It does not take a genius to know that if you don’t budget you may well soon be in dire financial straits.

            IT WORKS THE SAME FOR A COUNTRY AS IT DOES WITH A HOUSEHOLD OR BUSINESS.

            OUR U.S.SENATE REFUSES TO SET A BUDGET BECAUSE THEY DO NOT WANT TO LIMIT THE AMOUNT OF SPENDING BY OUR FEDERAL GOVERNMENT.  All they have to do is have the Federal Reserve (which is not a U.S. Government entity) print more money and keep on spending.  Each and every dollar they print makes every other dollar that is in circulation in theU.S.worth less and less.  This ‘inflation’ of the dollar raises the cost of every product and service, and while this further burdens the average citizen financially, wealthy politicians are not nearly so affected and appear oblivious to the consequences as they drive our country’s economy – a country with over $15 trillion in debt – to ruin.  (And please note that this debt DOES NOT include our ‘unfunded liabilities’ to Social Security, Medicare, Medicaid, and government-sponsored pension funds like Black Lung and Railroad Retirement, which are currently in excess of $100 trillion.) 

To really understand the debt and economic trouble we are in, here is a simple example:

            Now, assume a family of four, buying a home and going about their lives; total earned income is $100,000 a year. Using the same income-to-expense ratio (similar to the government’s income and spending ratio), this means that this family is spending over $162,000 a year, running up credit cards and taking out loans just to cover the extra $62,0000 a year to maintain their lifestyle.  Plus, they already owe $700,000 in debt for their home, all current loans, and credit card bills.  The interest alone on their existing loans and credit cards, etc., is over $19,000 a year.

            One parent wants to go get another credit card to keep paying for their kids to go private school, help pay some of their regular monthly expenses, and still be able to spend on whatever else they may want.  The other parent says “No way!  We need to get our spending under control and stop living outside our means, even if it means doing without certain things!  Sell the cars!  Move to a smaller home! We can’t keep living like this!”

            Which parent is the responsible one?  To fix the problem, it would mean a change in lifestyle.  The kids wouldn’t get the newest and best as soon as it comes out; no new cars for graduation; budgeting and planning meals; only eating out for special occasions; and there will probably need to be other necessary “sacrifices”.  But if that household continues, as is, then in the not-so-distant future, bankruptcy awaits.

Now, does this mean that family is in danger of defaulting on their loans? Yes, it is likely, if they do not change their spending habits.  Because there is still a decent income coming in, these consequences can be avoided by reducing their expenses to less than their income, and using the excess income to pay down their exorbitant debt, thereby reducing interest payments and eventually restoring fiscal sanity to the household.

(Note:  The figures used above come from the following website):

http://www.thesouthernlibertarian.com/2011/07/19/us-income-versus-debt-broken-down-to-normal-numbers/

            It has been 900 days since the U.S. Senate has set a budget for theUnited   States of America. That is almost 3 full years.

            It is time for us, the American people, to hold our elected officials accountable for running our country in a fiscally responsible manner and stop putting future generations into more and more debt.

            Our debt toChinaalone is staggering, andChinawill ‘own’ us someday IF WE DO NOT HOLD OUR ELECTED OFFICIALS’ FEET TO THEFIRE.

            Ask our City and County officials what Craig andMoffatCountywould be like if they did not set annual budgets.

            Please understand what our Democrat-controlled U.S. Senate is doing by not passing a responsible, realistic budget for this great nation ofAmerica:  They are driving us towards inevitable economic and social disaster.

Call your Senators, and encourage all your friends inColoradoand other states to call their Senators, as well.  Let our Senators know that we expect them to DO THEIR JOBS, and pass a fiscally-responsible budget and quit spending and borrowing this nation into ruin.

            Please feel free to copy this letter and send it to anyone you know, especially ourU.S.Senators in every state of thisUnited States.

Here is an excellent website where you can obtain contact information for all Senate and House representatives.

http://www.usa.gov/Contact/Elected.shtml

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