Tuesday, April 14, 2009

Whoa. Wait. Wait. Wait.



You can't $pend your way out of debt? Really?

Funny...that's exactly what I'm doing to pay off my car! But if someone has a better plan, one that addresses the debt problem without that annoying spending requirement, I'd love to hear it. Maybe a tax cut is the answer?

(Photo from here)

8 comments:

Robert Taylor said...

How exactly are you spending to pay of your car?

Ian McGibboney said...

I'm allocating funds from my budget to pay off the balance of my debt. Thus, I'm spending money to erase debt. It's how you do it.

GumboFilé said...

You spent the money when you bought the car. You spent your way into debt. Now you're paying the bill. You are paying (not spending) your way out of debt. Do you really not know the difference?

Robert Taylor said...

GumboFile just echoed what I was trying to say without spelling it out.

Ian McGibboney said...

Gumbo: I'm paying off the bill by spending money. In order to get out of this mess, the government's going to have to spend money as well. Most of these protesters have oversimplified the issue so much that they aren't bickering about where the money goes - just that it has to be spent at all. If they want to debate about HOW to spend tax dollars (say, paying off debts vs. financing more), then OK. But blind anger at government spending isn't going to solve any problems.

Robert: And yet, you couldn't resist...

GumboFilé said...

So you don't know the difference.

Ian McGibboney said...

I do know it, but I don't think the semantic difference is as important as you make it. At least when the only topic of this conversation has been, "Ian is dumb." I doubt my credit company cares what I call it; I still have to keep the money pouring in to satisfy the debt.

So to get down to the question I still have: How can the government get out of debt (pay it, if you will) without spending money? And even if the government stopped with new debts today, how would they pay off what's already there? Lower taxes? I don't get it.

GumboFilé said...

If you're dumb then I'm dumber for frequenting your blog.

You're not dumb but you set yourself up when you changed the meaning of a word in order to make the sign look dumb. And no, that's not me holding the sign.

And the meaning of the word is important because depending on how you define it, the sign can mean either of two completely opposite things. Your definition is acceptable but this context obviously defines it more narrowly.

In answer to your question, you get out of debt by using the income you have to pay the bills you have, which means you don't spend it (or borrow more to spend) on new purchases. You know this. The guy with the sign knows this. You agree. What the sign draws attention to is the fact that it works the same for the US government. Many people simply don't care.