Monday, February 14, 2011

Savings and Spending

I just heard a good analogy about our current "savings" in the present budget being presented before Congress!

If one has a budget of $40,000 to buy a car and you find a car that you'd really like to buy for $60,000. You decide to stick with your original budget and buy the $40, 000 car. When you get home you brag to others about how you saved $20,000. when you've really spent $40, 000. The $20, 000 savings was only because you did not buy what you desired.

An increase in the budget is an increase in the budget. What is spent over and above the previous year, is an increase, NOT a decrease!

I wonder how many Americans think in these terms in our credit driven economy? Savings is spending, because the market is driven by spending.  Instead of looking at one's income and budgeting to escape debt, one looks at what one wants and budgets based on whether one can afford the payments! This is presumption on the future for fiscal conservatives. And when government owns the corporations and decides that spending is really savings because the "corporations is "saved"....or the individual is "saved"....because of government expenditures! Then, the taxpayer's budget is being decided by the government and its demands upon those that have learned to be productive and/or save! Is this just?

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