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You Pay For What You Bought

neitherday
Date and Time  - Jul. 14th, 2011, 04:55 pm

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Tea Party Republicans seem to have got the notion that even if the debt limit isn't raised, there will still be enough money to pay for Social Security, the military, homeland security, Medicare, and other essential services as well as avoid a government default by paying the interest and fees on the debt. While it is true that the United States government will still have access to some money, prioritizing where that money goes isn't as simple as they believe and avoiding default isn't just about paying the interest on the national debt.

Suppose you have a friend named Alice Trustworthy. Alice Trustworthy offers you $1000 to paint the interior of her house in July. She doesn't have the money on hand, but she has a line of credit she often uses to pay her bills which she can also use to pay you.. Based on the trust that you have in Alice's you are certain that you will be paid. You use your credit card to buy the paint and supplies and get to work. You know next month you can just pay off the credit card with the money she'll give you.

In August, Alice Trustworthy decides that she doesn't feel like borrowing any more money. Because she isn't borrowing anymore, she's going to strip her budget down to the bare essentials and having the inside of her house repainted isn't all that essential -- you aren't getting paid. You already did the work. You need the money to pay off the credit card that you used to buy the supplies. Perhaps you could have used some of that money to employ someone to help you on your next job. How trustworthy do you think Alice Trustworthy is now?

Much of the "non-essential" goods and services that the government must pay for have already been provided, the invoice just hasn't been proceed yet. Failing to pay for those goods and services is just as much a government default as failing to pay the interest on the debt. The United States government cannot pick and choose what bills to pay and the Tea Party folk are deluding themselves if they don't realize the dire consequences of the United States no longer being considered trustworthy enough to pay its bills.

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budgets credit cards debt limit employment government default interestpolitics loans money paint politics predictions republicans right wing tea party truth united states

Comments:
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From:fnord23
Date:July 14th, 2011 - 09:13 pm
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can I share this?
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From:neitherday
Date:July 14th, 2011 - 09:27 pm
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Of course! Please do. Thank you. :)
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From:fnord23
Date:July 15th, 2011 - 01:00 am
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awesome. How are you? Haven't seen you around here in ages.
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From:neitherday
Date:July 15th, 2011 - 02:22 pm
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I am well. It is good to be back. I'd like to stick around this time.
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From:lizarde
Date:July 15th, 2011 - 05:18 am
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There's a "game" on the Washington post website that allows you to pick which things to pay. Even cutting out defense contractors I had a hard time doing it. We could be in some serious soup.

How are you doing?
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From:featheredfrog
Date:July 15th, 2011 - 10:03 am
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Great to "see" you here once again.
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From:neitherday
Date:July 15th, 2011 - 02:22 pm
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Good to "see" you, too.
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From:aoniedesade
Date:December 13th, 2014 - 04:06 pm
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Your journal meant a lot to me. Wish you were still about.