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Friday, April 8, 2011

The Budget - Quick Crummey Explanation

By George:

The US Government is currently going through the "Budget Battle" pitting the Republicans against the Democrats, with President Obama stirring the pot.

Lots of people have been offering explanations of the Billions and Trillions and Debt Ceilings etc.. Ordinary people listening to these explanations tend to glaze over and walk away without any better idea of what is happening.

Great news for all those who really want to understand what the heck is going on.

If you listened to todays's Joe Crummey Show on WABC, you got an explanation that brought it home to you. No big words, no grandiose Politi-speak, no obfuscation, just a simple family scenario. You can get the Podcast of this show at The Joe Crummey Show, Friday 4-8. However, there is no need for that, since I will give you Joe's explanation right here.

Your Household Budget
Let's say that you and your spouse run your household and have a weekly budget. Your budget has weekly expenses of $100, which means that your family spends $100 every week. The problem is, that your income (the salary you bring home) is only $50. So every week when you bring home your paycheck of $50, you have to borrow $50 to have money to live on for the week. Luckily you have a credit card and you charge $50 weekly to your card, knowing in the back of your mind you know that you have a $500 limit on your CreditCard.

Government Budget
The Government spends money (has expenses), but the income is only half of what their expenses are. So the Government now "borrows" the rest of the money they need for their expenses (on their ChineseMastersCard?), while in the background the "Debt Ceiling" (the CreditCard Limit) looms closer.

Your Household Budget
Your spouse comes to you and tells you that it is high time to cut back on the expenses to try to balance the budget, and proposes cutting the weekly expenses by $1.50. You agree to cutting expenses, but only want to cut 50 cents weekly. Hmmm... Does this sound like a solution?

Government Budget
Enter the Republicans (TEA Party?), who demand that the Government reduce the expenses so we have a chance to get out from under the debt. They demand a reduction equivalent to the $1.50 of the previous paragraph. The Democrats on the other hand want a smaller reduction, equivalent to the 50 cents of the previous paragraph. Hmmm... Does this sound like a solution?

Your Household Budget
You cut your weekly spending down to $99, but you're coming close to your CreditCard limit. What do you do? Increase your Credit Limit, or reduce your spending meaningfully?

Government Budget
Government cuts the expenses by a nominal amount agreed upon, but the "Debt Limit" is looming closer. What do you do? Increase the "Debt Ceiling", or reduce the spending meaningfully?

So for those who have gotten lost in the Budget Battle, now you can understand what it is all about. So are you happy?

Oh I can hear my Lib friends yelling (will someone shut Harry up!) that there is a solution that I haven't put into the explanation. I didn't put in the possibility of raising the money by taxing the citizens and confiscating money from the RICH. I'll answer that comment by pointing you to a video that will put this in perspective.

Meanwhile, what do you think?

13 comments:

  1. I think that the whole war against women needs to stop. I think that trying to insert defunding of Title X needs to be stripped out, and that ideology needs to be removed from anything remotely related to budget discussions. I'm pissed at both major parties, but I feel like the GOP has been hijacked by extreme ideologues who do not truly understand the premise of the *purpose* of the First Amendment and why it was established...and their war against women is proven clearly to be on the wrong side of history.

    Does the budget need to be worked through? Yes. But I stand with those who are refusing to allow this vendetta against Planned Parenthood (particularly given when and by whom Title X was enacted...and why) continue unchecked. Do we need women to start dying again by the tens of thousands before we wake up? People in my age bracket and younger have NO 1st-hand memory of WHY Nixon signed in Title X .... it's appalling, it's infuriating, it's depressing...and much as I tend to veer away from Boehner's theatrics, I had at one point given him at least a *bit* of credit for rising above the far-right extreme of the party.

    *heavy sigh*

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  2. keep sighing Prosey.... I'd like to know why the US government has to fund PP at all. First of all, if all they did was check women for abnormalities, it would be one thing but they do more than that. They perform abortions which 'we the people' should NOT be funding. 59% of the abortions alone in NYC are black babies. Of course if you approve of abortions for all those poor innocents, then go right ahead and scream your head off. All those abortions are performed by Planned Parenthood. A majority of the people in this country DON'T want their tax dollars funding murder. And women will NOT be dying by the tens of thousands as you put it,....geesh....if that's the case, what the hell if Obamacare for? why should be fund both? Get a grip. Planned Parenthood should be de-funded. We need to get the budget under control. The Dems should have had a budget last year but they were too slap happy with their stupid spending on wasteful programs.
    I would complain more about Obama refusing to pay the military. That, in my opinion is a travesty and it only proves that he is the most Un-American President we've ever had. If he won't pay for our military, who are out there risking their lives for us....but he refuses to defund the murder of innocent babies...then his priorities are all screwed up.
    This whole budget thing is one big political game by the dems who want to screw it all up so they can blame the GOP. I'm sure that will get your goat but it's the truth. Or...it's part of something even bigger and planned. Obama and his thugs want to crush the USA and what better way than to bankrupt us into oblivion. Who ever you're listening to is lying to you. Just like Nancy Pelochit who had the balls to say that millions of seniors would starve. They Lie... They all lie.
    Give it a rest. Nobody is going to die if PP is gone.

    ReplyDelete
  3. No, Lori...read the Hyde Amendment.

    Further, read the actual history of abortion in this country, which only became illegal in the mid-1800s. This IS my area of expertise. Unless you want a metric fuckton of sources directed at you, look it up before you start spouting ideological opinions. Don't want an abortion? Don't get one. But don't take away the only source of BASIC health care most poor women in this country have.

    Thanks. Buh bye.

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  4. Oh, and the deaths have already begun...unless you're really that blind.

    ReplyDelete
  5. Finally, Lori, I would LOVE to have a civil conversation with you about the realities...however, should you choose to respond to this, I WILL give you a *short* list of references on BOTH sides of the debate, and let you decide whether you choose to read the history or not.

    Aside from that, your comment here shows your ABJECT ignorance to the history...and until you actually educate yourself on the statistics and the history, you're beneath even bothering commenting to...so unless you have something to ADD other than ideological bullshit, you're not worthy of my time.

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  6. Lori - Planned Parenthood does not use any tax payer funds to provide abortions. They use private funding to provide that particular service. Let me repeat that V E R Y S L O W L Y....Planned Parenthood does NOT use your tax money to provide abortions. NONE. ZIP. ZILCH. Women use Planned Parenhood for other services like....screening for breast cancer, cervical cancer, uterine cancer, ovarian cancer, STD's, pap smears, pregnancy tests etc.. Do you really think that no women will die if you defund Planned Parenthood? especially knowing that that is one of the only places they can get LOW COST care for the mentioned screenings? Wow - I wanna live in your world. Unfortunately I already live in the real world...
    The Dems HAD a budget last year but the Republicans threatened a filibuster and as you know it takes 60 votes to override a filibuster. They didn't have the 60 so it never made it to the floor.
    Obama is not refusing to pay the military - the House holds the purse strings. Obama is not in the House or the Senate. It's a BUDGET BILL - please, don't make me sing the "I'm just a bill" song.....
    What political party was in charge when we got into 2 wars that somehow, didn't show up in the budget? What political party was in charge when our gov't gave tax breaks while we were fighting those 2 wars? What political party was in charge of Congress when the restrictions on banks was removed and Wall Street was allowed to bankrupt the entire world economy? What political party keeps insisting that tax cuts create jobs, when history has proven time and time again, that that isn't true? I don't know about you but I'm damn tired of being "trickled down" on....

    ReplyDelete
  7. Lori - Planned Parenthood does not use any tax payer funds to provide abortions. They use private funding to provide that particular service. Let me repeat that V E R Y S L O W L Y....Planned Parenthood does NOT use your tax money to provide abortions. NONE. ZIP. ZILCH. Women use Planned Parenhood for other services like....screening for breast cancer, cervical cancer, uterine cancer, ovarian cancer, STD's, pap smears, pregnancy tests etc.. Do you really think that no women will die if you defund Planned Parenthood? especially knowing that that is one of the only places they can get LOW COST care for the mentioned screenings? Wow - I wanna live in your world. Unfortunately I already live in the real world...
    The Dems HAD a budget last year but the Republicans threatened a filibuster and as you know it takes 60 votes to override a filibuster. They didn't have the 60 so it never made it to the floor.
    Obama is not refusing to pay the military - the House holds the purse strings. Obama is not in the House or the Senate. It's a BUDGET BILL - please, don't make me sing the "I'm just a bill" song.....
    What political party was in charge when we got into 2 wars that somehow, didn't show up in the budget? What political party was in charge when our gov't gave tax breaks while we were fighting those 2 wars? What political party was in charge of Congress when the restrictions on banks was removed and Wall Street was allowed to bankrupt the entire world economy? What political party keeps insisting that tax cuts create jobs, when history has proven time and time again, that that isn't true? I don't know about you but I'm damn tired of being "trickled down" on....

    ReplyDelete
  8. What so many people don't seem to understand is that a grand total of 3% of Planned Parenthood's budget goes towards funding abortions. That means 97% of their budget (of which federal funding only accounts for 1/3) goes towards cancer screenings, STD tests, community outreach/education, and a host of other necessary services. On top of that, not a single penny of federal funds (read: your taxes, which seems to be what you're most concerned about) pays for abortion. The Hyde Amendment prohibits that.

    Is the EPA what you're calling a wasteful program, Lori? Or are you talking about nutritous school lunches for kids? Or how about housing assistance for low-income seniors? They must be, because they are some of what is being slashed along with PP. HR1 is a horrific mess of budget cuts that are only going to hurt the people of this country. But, apparently, that's the American way.

    ReplyDelete
  9. Everyone in our country needs to stop wearing their feelings on their shoulders, stop being so self-righteous, and stop demanding so much. The world will never work our as well as it has in the past. People know too much and demand too much as a part of a result. I'm not saying knowing too much is a bad thing, but some things are best kept under wraps for the protection of society. This world is spinning out of control, and I hate how uncontrollably pessimistic I have become. Maybe it is because I am still young...

    ReplyDelete
  10. Planned Parenthood does not do cancer screening. They perform abortions. They are an abortion business. From their website: "A staff member at your local Planned Parenthood health center can discuss breast cancer, breast exams, and breast health with you and help you find the services you need". They REFER people to services - they do not do them.

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  11. Planned parenthood made 32 million in profit last year. All ideologies aside, why does any entity that claims that much profit need government funding. Secondly non-profits place all money in a general fund no matter its origin and use it to pay for all services. There is no way to claim that government funding is not being used for one particular service provided by planned parenthood. But I guess its better to provide all these great services for a short period of time than to provide some of these services for a long period of time. I'm excited for hyper inflation just like the weimar republic. If you want a true economic history lesson then read about Germany's excessive spending and refusal to pay down their war debt instead of getting your talking points from party leaders and blaming bush. Yes he was a bad president, get over it and try to help fix the problem instead of complaining.

    ReplyDelete
  12. Anonymous...you are flat wrong. I received PAP smears from Planned Parenthood when I could not afford insurance. What do you think a PAP smear screens for? An ear infection? No...it is a screening for cervical cancer.

    Educate yourself.

    ReplyDelete
  13. Anonymous, seriously, stop listening to the Pro-Liar movement and actually GO to a Planned Parenthood clinic sometime and stop spreading blatant misinformation based in fear-mongering propaganda. Go to ANY low-income women's clinic -- Planned Parenthood or otherwise (and there are others out there), and talk to the providers and staff about exactly what services they provide. If you truly believe that they are an abortion business (a whopping 3% of the services they provide), then you've clearly been drinking the TEA.

    ReplyDelete

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