This is how I run the finances in my house.
I work hard and get my pay.
I pay my taxes.
I take whats left and divide it into three
One third goes on neccesities
One third gets saved
One third is for wasting (holidays, new car etc)
If I want something I can not afford, I save for it or do without.
Therefore, I am always in the black.
If I dont work, I can ratchett my neccesities right back to meagre sum, and live off my reserve, then my savings.
I am still always in the black.
Now, for the sake of argument, lets imagine that last year I didnt do this, and I borrowed 100k from the bank to buy something, a gold mine in Australia or something.
The bank now tells me they want the money back right now.
I would stop saving, stop borrowing, stop the luxuries and pay it back as much as possible every week.
Can the economists in the congregation tell me why the country is run any differently ?
I work hard and get my pay.
I pay my taxes.
I take whats left and divide it into three
One third goes on neccesities
One third gets saved
One third is for wasting (holidays, new car etc)
If I want something I can not afford, I save for it or do without.
Therefore, I am always in the black.
If I dont work, I can ratchett my neccesities right back to meagre sum, and live off my reserve, then my savings.
I am still always in the black.
Now, for the sake of argument, lets imagine that last year I didnt do this, and I borrowed 100k from the bank to buy something, a gold mine in Australia or something.
The bank now tells me they want the money back right now.
I would stop saving, stop borrowing, stop the luxuries and pay it back as much as possible every week.
Can the economists in the congregation tell me why the country is run any differently ?
Comment