The Republi-CON Government and Household Debt CONparison

"A government does not have a life cycle, does not ever expect to stop generating income to support itself, and, therefore, does not ever have to retire its debt. It must keep its debts at a manageable size relative to the economy, which the U.S. has done over that 60 year period. If the economy is growing over the long term, that means the government can run a deficit and grow the debt every year -- sustainably. . .

If the recent expansion of the public debt is a matter of overriding economic concern, why is Boehner so resolutely opposed to tax increases to pay it down? America’s economy has thrived under a variety of tax policies, including much higher top marginal tax rates than are in effect today. Shouldn’t Boehner be willing to accept tax increases, or perhaps even be eager for them, in order to fight the debt menace he cites?

Boehner doesn’t really care about the public debt, as he made clear when he repeatedly supported debt-expanding measures under a Republican president. What Boehner and House Republicans really want are excuses to cut federal spending, particularly on programs such as Medicaid and food stamps that support low-income Americans. But those cuts are unpopular, so Republicans frame fiscal debate to make such cuts appear necessary to avoid disaster."

Read Bloomberg, Boehner Accidentally Explains Why His Deficit Position Is Phony. 

The article includes a chart showing the growth of "the net debts of Wal-Mart Stores, Inc. They have soared -- up 5,760 percent since 1987. By comparison, the roughly 600 percent rise in the U.S. public debt over the same period looks restrained. Is Wal-Mart mad? How long can it go on just borrowing and borrowing and borrowing?

The answer is 'as long as Wal-Mart keeps growing.' The white line shows Wal-Mart’s ratio of debt to earnings before interest, taxes, depreciation and amortization. And what that shows is that Wal-Mart’s debts have been rising to keep pace with its growing earnings. Similarly, for six decades U.S. government debt has been rising roughly in line with the growth of the economy. Over the last few years, it’s grown a lot faster because of cyclical economic weakness. The proper matter for debate is whether recent deficits are too large -- not whether six decades is too long to run them."