Tuesday, January 15, 2013

Obama Says Deficit Reduction Not A Worthy Goal By Itself

So, President Obama thinks that deficit reduction is not in itself a worthy goal to attain to.  To make certain that you know what deficit reduction is, let me explain.  The difference between deficit reduction and debt reduction is that debt reduction means that you are reducing the amount of money you owe out.  This is acomplished by paying your bills.

Deficit reduction is like this:  You have an income of $1,500/month (Don't laugh.  For me, to make $1,500 a month would be a very good thing,) yet you spend $1,800 a month.  This means that you are running a deficit (overspend) of $300 a month.  Deficit reduction would mean that you would cut back on how much over budget (monthly income) you spend.  So, instead of spending $300 per month over budget you would only spend $225 per month over budget.

So, what President Obama is saying is that he doesn't want to quit spending like he has an unlimited credit card, and wants us to pay the bill when it comes due.

http://godfatherpolitics.com/8979/white-house-deficit-reduction-is-not-a-worthy-goal/

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