I've shared this before but it's a message worth repeating. This is how an economy gets thrown off balance with the participants not knowing until it's too late.
Here's the scenario: A businessman had been travelling in his car for a long time and stops off one afternoon in a small town where he finds a motel. The owner of the motel told him a room would cost $50 so the businessman pulled the cash out of his wallet and gave it to him. When the businessman went upstairs, the motel owner went across the street to pay the bakery owner $50 that he owed her for providing breakfast snacks for his motel. The bakery owner then went over to the farmer's house and gave him $50 that she owed for eggs and milk for her bakery. The farmer then went into town to see a prostitute that he owed $50 to for services already rendered. The prostitute then takes the $50 to the motel owner because she had been using rooms there. Think about it, everyone at this point is out of debt.
Then the businessman goes down stairs and says he doesn't like the room and has decided to leave town, so the motel owner gives him his $50 back. It was the businessman who seemingly pulled them all out of debt but he's leaving with his $50. Are people really out of debt and better off? The answer is no.
The motel owner wouldn't have another $50 to spend at the bakery because the businessman took it away. The baker wouldn't need eggs and milk to make things for the motel. The farmer wouldn't have money to spend with the prostitute and the prostitute wouldn't need a room, so the motel owner would be out $50.
If the money were real and generated in their own economy, it would go around and around, keeping everyone fiscally sound but in this case, it was basically borrowed cash, they just didn't know it. It was pseudo money.
This is what Obama did with our Federal Government by pumping borrowed cash (some foreign), into the economy. Money that would eventually (even if it takes decades), be pulled back from U.S. citizens (increased taxes). Liberals try to make it sound like he was a great President but the fact alone that he accumulated more debt than all presidents combined tells us all we need to know about the quality of his presidency.
Here's the scenario: A businessman had been travelling in his car for a long time and stops off one afternoon in a small town where he finds a motel. The owner of the motel told him a room would cost $50 so the businessman pulled the cash out of his wallet and gave it to him. When the businessman went upstairs, the motel owner went across the street to pay the bakery owner $50 that he owed her for providing breakfast snacks for his motel. The bakery owner then went over to the farmer's house and gave him $50 that she owed for eggs and milk for her bakery. The farmer then went into town to see a prostitute that he owed $50 to for services already rendered. The prostitute then takes the $50 to the motel owner because she had been using rooms there. Think about it, everyone at this point is out of debt.
Then the businessman goes down stairs and says he doesn't like the room and has decided to leave town, so the motel owner gives him his $50 back. It was the businessman who seemingly pulled them all out of debt but he's leaving with his $50. Are people really out of debt and better off? The answer is no.
The motel owner wouldn't have another $50 to spend at the bakery because the businessman took it away. The baker wouldn't need eggs and milk to make things for the motel. The farmer wouldn't have money to spend with the prostitute and the prostitute wouldn't need a room, so the motel owner would be out $50.
If the money were real and generated in their own economy, it would go around and around, keeping everyone fiscally sound but in this case, it was basically borrowed cash, they just didn't know it. It was pseudo money.
This is what Obama did with our Federal Government by pumping borrowed cash (some foreign), into the economy. Money that would eventually (even if it takes decades), be pulled back from U.S. citizens (increased taxes). Liberals try to make it sound like he was a great President but the fact alone that he accumulated more debt than all presidents combined tells us all we need to know about the quality of his presidency.
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