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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: FJB who wrote (599057)	1/28/2011 7:24:26 PM
From: TimF	1 Recommendation Respond to of 1573092

projecting that unless cuts are made, within a decade the national debt could reach nearly 100 percent of all annual economic activity. That's like having $50,000 in debt on a $50,000-a-year salary. Not really its worse than that. GDP is gross production for the country, not the income for the government. Having the same level of income and debt, isn't so bad as long as you have something worthwhile for that debt. I have more debt than that, my mortgage is a lot higher than my annual income. If you want to make an analogy to a person's circumstances its like having $100K in debt, while producing $100k in gross production for your employer, out of which after corporate tax, your share of the overhead for running the business, the profit the corporation makes, and the taxes on your income you get much less than $100k, maybe $30k. And continuing the analogy you have that $100k debt/ $30k income situation with a lot of spending going on that you can't seem to get under control (You give in to your kids whining that they need fancy clothes, some of it is payment on the debt, etc.)