What if your credit card company agrees to give you any credit limit you want? If you are like the US government, you'd probably rack up more debt to max even that increased credit limit. A fight is brewing over a proposal to raise the government's credit limit. Gosh, this government's out of control! I like George Bush, but really, as I've been stressing to many friends, he's not conservative. Racking up huge amounts of debt is not conservative philosophy in my book.
Now, deficits by themselves are not always bad. Think about an individual again. If you are in debt paying for a professional degree (say law school), this might be a good investment as it provides opportunities for better pay down the line. But if you're spending on items that do not boost your future cash flow, this is a recipe for disaster. And yet, the government spends most of its money on non-investment type programs, often pork-barrel spending with no greater purpose than to get congressman reelected, like the horrendous Bridge to Nowhere in Alaska.
I will pat Democrats on the back for demanding fiscal responsibilty, but I differ with them on the solution. The solution is not to raise taxes, but to cut spending. Think again to the individual who works as a contractor and charges by the hour. If he thinks he can solve his credit card issues by raising his hourly wage rate, he's in for a shock, as he finds the work drying up and his income falling. His only way out of the hole is to cut spending, challenging every expense item - house, food, everything!
Maybe the government should be run more like a responsible household. You start with what you have and spend from that pot, rather than deciding your spending and then run up a debt!