Ok, I know the Daily Kos is a socialist leaning liberal site, but when this popped up in my newsfeed I just had to comment.
First up, here’s their quote (I’m not attempting to verify the quote, an I’m assuming it’s accurate) from Mike Lee (R, Utah) I mean, look, when we’re bringing it about $200 billion a month, and our interest payments are less than 10 percent of that, and Social Security payments are about $50 billion, why on earth would you cut Social Security checks first?
Their response (from Ian Millhiser, whoever he is) in part says this; On Aug. 3, the federal government is supposed to mail out about $23 billion in Social Security benefits, but it will only take in about $12 billion in taxes — leaving an $11 billion shortfall. It won’t matter whether the government will eventually collect the “$200 billion a month” that Lee refers to, because only a fraction of that money will actually be in our bank account when Social Security’s bill comes due.
So evidently the Daily Kos hasn’t ever heard of a concept called managing cash flow…. Dumb asses. Ok, so the government will need to send out $23 billion in Social Security checks on Aug 3rd, while only bringing in $12 billion in taxes. How many of you take in more income than you spend – on any given day? I’d wager that almost no one – not even Bill Gates or Warren Buffett does that.
Pick a day – any day – during the year. Unless that day happens to be a payday, you’re almost certainly spending more than you received – on that particular day. But (unless you’re a moron named Ian Millhiser writing for the Daily Kos) you take in a LOT more than you spend each and every payday. You manage your cash flow – balancing income and spending - so you have enough money to get you to the next payday.
You probably have a budget – either written down or mental – for how much you can spend each month. You have two or three paydays each month, and you make your money last at least until the next payday. You have to, because you don’t eat if you don’t.
Even if you simply live paycheck to paycheck, you are smarter than congress, Dubya, Obama, Ben Bernanke, and the Daily Kos, because none of them know how to do this. They spend until they reach the limit on their credit cards, then complain that the credit card company won’t raise their limit. Morons.
Side note – Hopefully you have some savings – and spend a bit less than you make so that you have a bit of a cushion if something happens – lets call that an emergency fund. You use that when the water heater or AC dies. The government might use their emergency fund to clean up after a natural disaster – like the Joplin tornado.
Anyway, the point is that each and every day isn’t the same regarding cash flow. Take the example above; that $23 billion number is totally random. The total amount spent on Social Security in 2011 will be about $700 billion, or less than $2 billion per day.
The $23 billion a day used in the Daily Kos story would add up to over $8.39 TRILLION each year. ($12 billion in taxes daily would add up to over $4.3 trillion – way more than the approximately$3.7 trillion we spend per year as well.)
What happened to the excess money the government took in on Aug 2nd? (That’s a rhetorical question, as I know taxes only cover about 60% of what we’re spending. That means we’re spending too damn much! We’re also allocating way to much to so called “mandatory spending”, but that’s actually spending set by congress, and not “mandatory” at all.)
A little further down the Daily Krap says Yes, they should invent a whole new AAAA bond rating for the US if it defaults. Meanwhile, can I recommend to Rep. Brooks that he stop paying his mortgage to improve his own personal credit rating?
I can’t believe that the Daily Kos is really that stupid, but evidently they are. No public official that I know of is – or has ever – advocated that the government stop paying our debts. But defense spending, Agriculture spending, EPA, HSA, HUD, VA, Transportation, Education, Energy, and NASA spending is NOT mandatory spending. Cut them.
Yes, this pains me (and probably you as well) greatly. But at least you and I can add. The morons at the Daily Kos evidently are actually suggesting that we pay those things before paying our legally required monetary obligations. That would be like you or I deciding to buy a gallon of ice cream instead of a gallon of gas – then bitching and moaning that we can’t get to work the next day.
I am opposed to raising the debt limit. We need to dramatically cut spending – but that alone won’t balance the budget and we’d still run short overall. We also need to raise taxes. Yes, it sucks. And yes, no one likes it.
But thanks to the idiocy that was Dubya (No child left behind, Medicare Part D, Iran, Afghanistan, Homeland Security, financial bailouts to Wall Street buddies, etc, etc, etc) we have committed to spending trillions more than we take in each year.
We will never reduce the debt – or even stop increasing it – until we stop spending more that we take in in taxes. This ain’t rocket science. But it’s beyond the ability of the Daily Kos (or most of the morons in DC) to comprehend that income and spending need to match over a period of time, and that you have to have the money before you can spend it. Idiots.