IMHO, the analogy of a family budgeting should fit. If a family takes out a loan for college or a home they are expected to make timely payments until the debt is paid off. IF per chance they are able to save back enough money to pay cash, then great.

Here’s the difference as I see it. The government doesn’t know how to save money back for a “rainy day”. They spend and spend and borrow and borrow with no set goal or “budget plan” to pay it down. Unlike the family, if a family doesn’t have the means to make the house payments they may face losing the property.

What is the government going to lose? Is the whole group of lenders to the U.S. going to come in and repo the country? No, more than likely what will happen is they won’t let the U.S. borrow any more unless they pay down what is already owed.

Of course the government would have a wider tax base if more people were actually able to pay taxes by working. Which is another topic for another time.