So I read an article by Suzy Orman on CNN last week that not raising the national debt ceiling is like not paying your credit card bill. Check out what she said:
As we all know, if you run up a balance on your credit card and then decide not to pay the bill, there’s a huge price to pay. Your interest rate goes up, your credit score goes down and that triggers all sorts of costly dominoes to start falling. To not raise the debt ceiling is akin to refusing to pay your credit card bill.
Unfortunately Ms. Orman is sadly mistaken in this analogy. A better comparison would be saying that raising the national debt ceiling is like taking out another credit card so you can pay your electric bill.
You see, the entitlement programs we have developed were meant to help people out. Unfortunately we’ve been funding those programs on credit. This means we really couldn’t afford those programs to begin with. Now, our society has moved to a point where in order to continue funding all the programs we have in place it’s becoming an exponential curve (meaning the rate of growth over time is increasing…it costs more every year to continue funding these programs).




