Response to Debt Ceiling Analogy

I recently tried to create a household analogy for the Debt Ceiling. It’s awkward, I know, but that’s because the way our government handles finances doesn’t exist anywhere except for in government institutions. I asked for suggestions to improve the analogy and I received a few tweets on the subject.

So, first, let me say thank you to @es1999 for at least trying. Let’s jump right in.

I read it but I think it is bad analogy. To improve it, the wife is conflicted: spending, amount of debt & her childrens future

In the first draft of the post, I did reference that the wife is conflicted given that the Democrats and Republicans are fighting about this in Congress. However, when it comes to the actual analogy of the Debt Ceiling this conflict within Congress is irrelevant which is why I removed it from the analogy. The spending bills have already been passed. If the part of the Wife/Congress which wanted to reduce spending wanted to reduce spending, then the appropriate time to do that was during the passage of the spending bills. 

It's not irrelevant. Half of Congress wants to "deauthorize" some spending so less debt is accumulated for future generations.

The spending has already been authorized and if they want to “de-authorize” it, then they should pass a bill to de-authorize it. Until they de-authorize it that spending, it is IRRELEVANT to the debt ceiling. The spending is authorized and Obama is ORDERED BY LAW to spend that money. If he chooses not to spend it, he’s BREAKING THE LAW… and this spending is for the military and the FBI and the CIA, etc. 

But even so, in order to cut spending enough to avoid hitting the debt ceiling, you would need to eradicate the entire $trillion deficit immediately. REPUBLICANS ARE NOT OFFERING TO CUT SPENDING BY $1.1 TRILLION PER YEAR. John Boehner’s first Fiscal Cliff offer to Obama included $135 billion in cuts per year. That would still require the raising of the debt ceiling, because Congress is STILL ORDERING the President to spend more money than Congress is giving the President.

Continue the analogy where they accumulate so much debt that the credit card company calls to collect, bankruptcy & foreclosure

This is what happens if Congress REFUSES to raise the debt ceiling. If Congress increases the debt ceiling, as they should, then we don’t have any problems with “foreclosure.” If the GOP stops Congress from raising the debt ceiling, then the GOP becomes the deadbeat who refuses to pay their bills. 

suggested change: wife & husband have an accountant to manage finances. They see their debt ballooning & argue about spending.

Who is the accountant in this suggested change? There is only one “person” who decides on spending and that is the Wife/Congress. The Husband/President is only getting involved and arguing with the Wife/Congress because the Wife/Congress is giving him conflicting orders. Any accountant analogy you add has no power to control the Wife’s spending orders.

As I’ve said before, this topic is confusing which is why I wanted to create an analogy for it… but what these responses show is that people just really don’t understand how Congress spends money and how the Debt Ceiling works.

I think the debt ceiling has two true solutions:

1) Change the Law so that Appropriations Bills automatically increase the debt ceiling by the amount spent.

2) Change the Law so that the President has the power to increase the debt ceiling. 

Either way, this problem belongs to CONGRESS. Too many people think Obama is spending the money and he has a spending problem, but it’s not true. Congress orders the spending. Congress sets how much tax revenue to collect. Congress controls the debt ceiling.

Congress has issued conflicting orders to the President and are trying to convince everyone that the President is one in the wrong.