Supply-Side Economics

[finnbow]

Originally Posted by whell

Got it wrong again, tool, possibly because your knowledge of budgeting came from inside the Beltway. And your analogy sucks. Here's a better one:

Cali saying that they have a surplus is like saying that I have a mortgage payment that doesn't fit my annual budget, so I'm going to borrow the money to pay the mortgage...

What you're describing is a second mortgage. Having a second mortgage doesn't make one any more bankrupt than having a first mortgage.

[whell]

Originally Posted by finnbow

What you're describing is a second mortgage. Having a second mortgage doesn't make one any more bankrupt than having a first mortgage.

Individuals don't need to take out a second mortgage to pay their bills. There are personal loans, home equity loans, advances from credit cards (thus my "paying the Visa with the Master Card" reference), borrowing money from a 401(k), an advance or a loan from an employer, etc.

On the other hand, individuals or businesses don't get to loan/bond revenue as income. In business, bond sales are booked as balance sheet items: income received as an asset and bonds payable as a liability.

[finnbow]

Originally Posted by whell

Individuals don't need to take out a second mortgage to pay their bills. There are personal loans, home equity loans...

Second mortgages and home equity loans are not materially different, other than tax treatment since 2018 (and second mortgages are better in that interest upon them is tax deductible).