Biz Beat [Opinion]: Pay-as-you-go - An Obama personal finance lesson
President Barack Obama says we should pay for government spending programs by … err, paying for them. Makes sense. When I go to the store for groceries, I pay for them. After eating dinner, I pay for it. And even when I fill up my truck with gas, I pay for that gas. Not a year later. Not 20 years later. And I absolutely, positively, do not ask China to pay for it by financing my debt.
Unfortunately, not all Americans follow this principle. That's why so many people are in foreclosure or in credit card debt up to their eyeballs.
Sadly, presidents Obama and Bush haven't been financially fit, either. When President Bush decided last fall to bail out the financial industry and then the auto industry, he did not have the money. When President Obama signed into law his massive stimulus bill this February, he could not pay for it.
Obama certainly wants to spend more money. Lots of it. Healthcare, anyone? But now, the president says, we must find a way to pay for it.
But how? Well, the president has identified $17 billion to cut out of next year's budget. The federal government will spend $3.6 trillion next year. That's less than one-half of 1 percent.
So, he's not going to pay for his spending through budget cuts. That leaves only one option — raising taxes. Just what we need as the economy staggers out of a recession.
Another thing: if you read the fine print on the Obama plan, the government doesn't have to pay for its programs right away. Not even within a year. The government will get 10 years to pay for its spending.
Wow. What kind of credit card do they have?
One named "China."