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randome

(34,845 posts)

7. They can in a way but it's very different from what the rest of us consider 'going broke'.

Reply to duffyduff (Reply #5)

Sat Oct 26, 2013, 11:37 AM

Oct 2013

The government can default on its obligations, which would cause a financial catastrophe. But you're right in that the government will continue to function most of the time. Sometimes a fallen government gets replaced in the midst of a meltdown.

And individuals and corporations have the added protection of filing for bankruptcy. It doesn't always work but for many it does.
[hr][font color="blue"][center]Stop looking for heroes. BE one.[/center][/font][hr]

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Why governments are not like households and should not behave like them [View all] Zynx Oct 2013 OP

Congratulations, Sir, On An Excellent Piece The Magistrate Oct 2013 #1

Thank you! Zynx Oct 2013 #3

I Agree It Needs To Be Hammered Home, Sir The Magistrate Oct 2013 #4

Excellent analogy! randome Oct 2013 #6

Very few people live on a balanced budget. vinny9698 Oct 2013 #12

Well, that's not exactly true SnowCritter Oct 2013 #15

This message needs to be said, read, and SPREAD!!!!!!! calimary Oct 2013 #20

Households, corporations and governments all behave in similar ways. randome Oct 2013 #2

The federal government can't go broke, so it's not the same at all. n/t duffyduff Oct 2013 #5

They can in a way but it's very different from what the rest of us consider 'going broke'. randome Oct 2013 #7

I had to borrow this and put it on my FB page. LuvNewcastle Oct 2013 #8

Thinking about putting this on my FB page. ChazII Oct 2013 #10

Bookmarked. Well-stated. lastlib Oct 2013 #9

Excellent. I'm also amused to see characters like Romney or Trump cheapdate Oct 2013 #11

I just tell them that my mortgage is 5 times more than my income... or 500% of my GDP. ErikJ Oct 2013 #13

Households do not need bombers, tanks, missiles, armies or navies ThoughtCriminal Oct 2013 #14

You conspicuously left out skepticscott Oct 2013 #16

Government demands a raise and gets it RobertEarl Oct 2013 #19

Excellant analysis ZX86 Oct 2013 #17

Thanks Zynx. If you don't mind .... Tanelorn Oct 2013 #18

Nice write-up.... Wounded Bear Oct 2013 #21

Zynx, that was well laid out. Will save and study it to use. freshwest Oct 2013 #22

k&r n/t RainDog Oct 2013 #23

Excellent. drm604 Oct 2013 #24

K & R SunSeeker Oct 2013 #25

I very much prefer to argue that governments DO, in fact, operate like households. Laelth Oct 2013 #26

Even the household budget analogy isn't valid. Cleita Oct 2013 #27

There is a huge difference between borrowing money skepticscott Oct 2013 #29

Really, the most affluent economy in the world can't pay it's bills? Cleita Oct 2013 #30

The "most affluent economy in the world" is paying its bills skepticscott Oct 2013 #31

Oh my so many hair on fire, be afraid, be very afraid, RW talking points in a couple of Cleita Oct 2013 #32

Trying to dismiss something by calling it a "talking point" skepticscott Oct 2013 #33

Whatever. You win. Cleita Oct 2013 #34

If you're going to be skepticscott Oct 2013 #36

Thank you for a succinct exposition of Keynesian economics. Jackpine Radical Oct 2013 #28

Excellent article and a few things to add if I may. airplaneman Oct 2013 #35