Quote:
Originally Posted by WarrenC12
He's trying to liken in to a personal finance situation. I make $50k a year and spend $55k with no assets. I have a $5k annual deficit. If nothing changes eventually I will go bankrupt... that's true.
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Even in personal finance you can constantly have growing debt and increase your income/assets without going bankrupt, and in fact this is pretty common.
You borrow money for school, then you buy a car to get to work, then you buy a house. Maybe you increase your debt against your house, but by a fraction of its increase in value. You're a Boomer who buys at $80,000 and then in 2040 you kick the bucket owing $90,000 on a house that's worth $1.5M.
The big difference with the feds is they can create their own money and inflate away their debt.
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