The federal budget is not the same as a household budget
Marketplace
Marketplace
4.6 • 8.5K Ratings
🗓️ 16 February 2023
⏱️ 27 minutes
🧾️ Download transcript
Summary
The debt ceiling dance is well underway in Washington and the Treasury is taking “extraordinary measures” to avoid a default. House Speaker Kevin McCarthy has compared the federal budget to a household’s credit limit, but that’s like comparing apples and oranges, or maybe apples and the Pentagon. Today, we’ll outline why. Plus, what wholesale prices indicate for consumers, who’s hiring amid a slew of layoffs and what’s at stake in the upcoming farm bill.
Transcript
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| 0:31.9 | Just because somebody in Washington says it doesn't mean it's true, you know, from American |
| 0:39.1 | public media, this is Marketplace. |
| 0:50.4 | In Los Angeles, I'm Kai Rizzo. It is Thursday today, the 16th day of February. It is always |
| 0:55.9 | to have you along. Everybody, you might have seen this yesterday. The new Congressional |
| 1:00.7 | Budget Office 10 year budget and economic outlook. One not small part of which was that the |
| 1:07.0 | CBO figures the Treasury Department is going to run out of ways to move money around and |
| 1:11.4 | thus keep us technically in compliance with the debt limit somewhere in the July to September |
| 1:17.5 | time frame. That is not necessarily new information. Treasury has been saying essentially the |
| 1:22.9 | same thing, but it did remind me of something I have been wanting to talk about for a while |
| 1:28.0 | now. |
| 1:29.0 | So what I really think we would do is treat this like we would treat our own household. |
| 1:32.8 | If you had a child, you gave him a credit card and they kept hitting the limit. You wouldn't |
| 1:36.9 | just keep increasing it. Kevin McCarthy, the Speaker of the House last |
| 1:40.7 | month saying the federal budget and debt limit are the same thing as a household credit card. |
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