OK let me try to put this in terms we can understand.
President = me
Congress = my credit card companies
Federal Debt Ceiling = the combined credit limit of all my credit cards
Federal budget = my spending habits each year
Federal total tax revenue = my salary
Mandated federal spending = my rent and minimum payment on my credit cards
Let's say I make $100,000 per year but am planning to spend $200,000. And, I'm $500,000 in debt on my credit cards from spending too much in previous years (but the interest rate is low).
My credit card companies said they'll freeze my credit limit (they've been raising it each time I hit the max in the past) unless I come up with a spending plan that limits my spending over the next 10 years to only about $150,000 per year (still way more than my income).
If I don't come up with that plan by Aug 2, they'll stop letting me use my charge cards. I can still use my salary to pay the rent and minimum credit card payments, but I can't borrow more.
Of course, if I cut $50,000 out of my spending each year, my florist, my travel agent, my barber, and my clothier are all going to feel some pain. Maybe my kids, too.
So where has my analogy gone astray?
