What would they make of this on the Debt forum?

Mr_Mumble

StevieJ wrote: »

Income p.a. — $21,700
Expenditure p.a. — $38,200
New debt added to credit card — $16,500
Outstanding on credit card — $142,710
Expenditure cut back — $385


That is the US financial position in Mr & Mrs Smith speak :eek:

http://www.mantlefp.com/mantlefp-news/how-many-zeros

The US federal government's financial position. Households, families and individuals have far more assets than liabilities that still outweigh government debts, for the moment. However, what right do governments have of laying claim to the assets of the individual? I'd say none at all, just because 51% of the people vote for some dimwit doesn't mean they can claim the labour and resources of the other 49% as well. The "tyrany of the majority/masses" was a problem underlined by the likes of John Stuart Mill and Alexis de Tocqueville in the 19th century and politicians at that time were studious enough to listen. Those lessons have been abandoned by the current political class who think the productive resources of the entire country are their own to mortgage.

Note Britain's financial position is nowhere near as perilous when using this household analogy. The US federal government's revenue is roughly 19% of GDP compared to 38% of GDP for UK central government. It's a huge difference and is reason #1954543856 why debt to GDP levels are a very rough and dangerous indicator. Of course with far higher levels of local (state, municipality and county) tax in the US there is no way the US federal government can burden the taxpayer for a huge leap in funding.