Pragmatic Capitalism

Practical Views on Money, Finance & Life

When Silly Analogies Go Viral….

Maybe you’ve seen this image going around the internet?  I saw it on Facebook the other day and then again today on Twitter.  It shows the US government budget and compares it to a household:



Now, ask yourself the following questions:

  • Has your household been alive for 237 years?
  • Does your household have the ability to print US dollars?
  • Does your household have the ability to sell debt denominated in the same money you print?
  • Does your household have the ability to tax other people to generate revenues?

If you answered no to all of the preceding questions then you should also realize that the analogy above is a complete misrepresentation of the way our monetary system functions.

Cullen Roche

Cullen Roche

Mr. Roche is the Founder of Orcam Financial Group, LLC.Orcam is a financial services firm offering low fee asset management, private advisory, institutional consulting and educational services.Cullen is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.
Cullen Roche

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