Thursday, April 8, 2010

The Excess of HomeSpills into Washington


How do you explain a successful brain surgeon husband and a successful Lawyer wife in debt up to their chins.  When you consider the cost of schooling alone, this couple could start off in hundreds of thousands of dollars in debt.  Then, factor in the cost of starting up practices, essentially small businesses.  Also, because nobody that just spent 30 years of their life in school wants to live in an apartment or drive a beater, you have to factor in the cost of a nice home and automobiles and the cost of engaging in similar society, and you have a couple that could be making close to 400k a year in salary so deep in debt they cannot see straight.   What you have in this situation is not an income issue but an expense issue.  A family like this could easily overcome their debt if they simply controlled their expenses.   Couples like this cringe at the thought of giving up a car or something else.  Instead, they may opt to take on more cases or see more patients.  What follows with the increase in income is an increase in expenses.  Why not slash expenses, pay off debt, and then increase spending while managing a balanced budget. 
So why would we expect anyone in Congress to do the same radical thing.  Our government is simply operating the same way as our households?  We rack up debt and fail to cut expenses despite the lack of income.  Those of us that do make such a decision are often looked at with  scorn.   Maybe we need to get our houses in order to send Washington a message.

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