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We need to stop using the national credit card so much because we're 10 TRILLION (10,000 BILLION, 10,000,000 MILLION) dollars in debt! This is a crisis! In the long run this means higher taxes, lower government spending on useful stuff, or both, and both are generally hard on the economy.So, here's what we should do: save in good times for the bad times.
Here's how it works: in good economic times we save money, like a squirrel hoards nuts for the winter. People will want to spend the money now or have tax cuts now but we must stay firm! Our budget has a surplus and we are paying down debt. We save rainy-day money in a fund we don't touch, until . . .
A recession happens. Less tax revenue is coming in which means the government has to cut services/jobs or go into debt. This always happens every several years. So, like the squirrel in winter, we raid our stash of nuts. We use our rainy-day fund to ease the pain. If the rainy-day fund isn't enough to stimulate the economy we go a bit into debt keeping in mind that we will pay this debt off and create a new, bigger, rainy-day fund when the economy is good again.
We're at least as smart as squirrels right?
