winterbadger | bad analogy, false premise--two strikes is enough to call this out

I am so tired of hearing small-minded fiscal conservatives try to justify their catastrophic and wrong-headed attempts to cut government budgets during a recession (when we *should* be deficit-spending) by claiming that "governments should be just like families, and only spend the money they have brought home".

Even setting aside the issue of how valid it is to say that a macroeconomic entity should behave like a microeconomic entity (I would say "not"), the very premise is flawed.

Familes only spend the money they bring home? Bullshit. Before America's unhealthy love-affair with credit cards got started, very few families bought homes, cars, or even major appliances with cash or cheques. Investing in capital goods and services (has anyone reading this NOT had college loans?) with borrowed funds is a long-standing American tradition. To suggest that everyone spends only what they earn, and that this is somehow a wise and realistic goal, either for individuals or governments, is an argument only made (IMO) but those well out of touch with reality.