Posts tagged with: credit card debt

The Keynesians will have little to cheer about in this story. Yesterday I saw this report from CNN Money that said U.S. consumer credit card debt fell by 11 percent in 2011. Mississippians led the Union by reducing their card balance by 23 percent. While total household debt fell by only 1 percent last year, it is still a towering accomplishment when compared to the U.S. federal debt increase.

This is exactly the point Jordan Ballor and I made in our 2008 commentary “The Fiscal Responsibility of Mall Rats and Bureaucrats.” In that piece, we pointed out that the federal government is a significantly poorer steward of our resources when put up against the supposedly “materialistic” and “selfish” consumer.

The inability of the federal government to curtail spending should be considered a form of insanity when one simply looks at the numbers. Instead, as I pointed out before, government spending is now so sacred for some in the religious community, it is a shrine that must be encircled.

Political commentators have spilled a septic field of ink explaining what drives the Tea Party movement; and, sure, the movement is complex and varied, resisting any single attempt to blah blah blah. But the core of it boils down to the Saturday Night Live skit below. The analogy runs like this: The Steve Martin character and his wife represent the ruling political class in Washington; and the Tea Party is the book author.

I realize it’s not a perfect analogy. If it were a perfect analogy, the book author wouldn’t be nearly as detached, because the couple has been spending the author’s money using a credit card he had idiotically loaned them a few years before. Oh, and the husband would be accusing the book author of racism, or of being a flyover country yahoo without the sophistication to understand Keynesian economics or something.

[Hat Tip to Luke at Cornerstone University for the SNL skit.]