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End the Magical Balance Fairy Shutdown Myth

68
lawhawk10/09/2013 10:43:56 am PDT

Gohmert is another economic illiterate.

Says that government can’t default if it is shut down.

Except that expenses and obligations are still accruing. Interest on debt. Payments already obligated by Congress, etc.

There’s no easy analogy to a personal finance situation, but this is the closest I can come up with.

Gohmert is laid off from his employer. He has no other income coming in, but he’s got bills to pay. He’s got the car payment, the mortgage payment, student loans, and credit card bills. Oh, and he has to pay for food, heat, and his cell phone.

All those bills don’t disappear once the job disappears. They add up. They have to be paid, even if it’s only the minimum payment. The rainy day fund is tapped out because he’s been living beyond his means for years and he’s used every fiscal gimmick to avoid the reckoning.

The bills come due. And he has to pay by law. There is no bankruptcy option either (a key difference).