i have heard this is false because it's vastly oversimplified but i've never heard anyone explain what's fundamentally wrong with it... care to?
there are tons of articles out there on this. the key points can be found here: http://rooseveltinst...dget-here-s-why
1) families can't levy taxes on hundreds of millions of people
2) debt isn't an inherently bad thing when it comes to government. the US government has been in debt for all but 2 years of its existence, and a government running at a profit is a government not sufficiently meeting the needs of its citizens (because government isn't supposed to be run like a business). no debt tells me that we are either not spending enough or taxing too much. the end game of starve the beast, after gutting social security, medicare, and medicaid, is to suddenly point out that we're not running a large deficit anymore so we should just cut taxes again!
3) historically, significant reductions of the debt have directly led to depressions
4) "The federal government is the issuer of our currency. Its IOUs are always accepted in payment." basically, if your household is millions of dollars in debt, good luck getting someone to accept an IOU from you
this article doesn't even begin to touch on the reality that government spending stimulates the economy (this is why a call for austerity during a recession/depression is the dumbest fuging thing ever). government spends money -> money circulates throughout the economy -> government collects higher revenue -> government spends that money -> so on -> so forth. show me a household that can operate in that manner
there's more to it than just this but i'm not an economist so if you're interested in more, there are plenty more resources on the topic, simply because people continue to perpetuate the myth that the government budget is equivalent to a household budget