Thursday, July 14, 2011

Balanced-Budget Amendment Linked to Debt Talks - WSJ.com

THE TEETER-TOTTER ANALOGY: Balanced-Budget Amendment Linked to Debt Talks - WSJ.com

Perhaps one could think of the balancing act between the Republicans (less government both now and in the future) and the Democrats (more government and a permanent increase in the share of GDP taken by government) as two kids on a teeter-totter.

Everything is fine as long as the kids are of roughly equal size. But, when they aren't, one kid ends up in the air and the other on the ground.

Now, we can all take a look around and objectively see where societies are showing growth and where they aren't.

We can see where societies have overspent (e.g. US and Greece) and where they are in some type of trouble.

It would seem as though the Democrats have taken on the role of the 'fat' kid on the teeter-totter and they can't stop eating.

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