It is true, we do learn by observing other's examples. With the example that the federal government is giving Americans on living within a budget, it is not surprising that so many Americans have budgeting woes. If a parent does something, how long do you think it will take for a child to notice what they do and try to follow in their footsteps?
True, there are many Americans that have recognized the error in judgment of the federal government's budgeting skills. They have chosen to live within a budget and not follow the government's example of spending more than they make. When we do it, it is called overextending our credit. When the federal government does it, it is considered a budget deficit.
According to CNN, in 1990 the United States had a budget deficit of 221 billion. The deficit continued to increase until it reached 290 billion in 1992. By 2000, the federal government had turned that budget deficit into a budget surplus of 236 billion dollars. A budget surplus would mean that we as individuals could put more into savings for the future or buy things that we had been putting off but truly needed. For the federal government, having a surplus does not seem to be the ultimate goal. In the last seventeen years, our federal government has only had surplus for less than four years. In fact, from the 2000 highest level of surplus within that time frame to the greatest deficit of 413 billion only took four years. In the three following years, the deficit was reduced by 250 billion dollars. With the projected deficit for 2008 being 482 billion, then not only has the deficit hit the greatest level of deficit in 18 years, but it has also more than doubled in one year!
If we, as individuals, increased our debt by such a huge percentage, we would be searching for ways to make changes. We would possibly lose many of the things that we had accumulated by increasing our debt. If our debt doubled, so would our payments. Unless we also had some major increases in our income, it might be difficult to pay the payments on this new expanded debt. When we do not pay our debts, then the lender will take away the collateral listed on the loan. Is it any wonder why repossessions seem to be on the rise?
For the federal government, it is time to take the necessary steps to learn to live within a budget. If not, how can they ever expect Americans to live within their means? If we do not want our children to do something, then we should not allow them to see us doing the things we want them to avoid. If the federal government does not want Americans to run up increasing amounts of debt and end up in bankruptcy or with repossessions, then, they need to set a good example. Living within our means is something that is not only good for individuals, but also a good example for government to set.
