Wednesday, September 12, 2012

Putting the national debt in perspective

Thanks to Jim Bowman for this e-mail. The prospects give me a headache but this helps in understanding the cold, hard reality as to why the problem must be addressed, and soon.

Everyone seems to be struggling to understand the national debt and lack of a federal budget. These figures are associated with our government mishandling the economy.

  • U.S. Tax revenue : $2,170,000,000,000
  • Federal budget : $3,820,000,000,000 *
  • New debt : $ 1,650,000,000,000
  • National debt: $14,271,000,000,000
  • Recent budget cuts : $ 38,500,000,000 **

This may help us understand why the deficit is so destructive. Pretend it's a household budget by removing 8 zeros.

  • Annual family income : $21,700
  • Money the family spends : $38,200
  • New debt on credit cards : $16,500
  • Outstanding balance on credit cards : $142,710
  • Budget cuts to try to fix the problem : $385

How long do you think that family would survive economically?


* They don't have a budget. They just keep raising the debt ceiling allowed by law.
** Their idea of a budget cut is not increasing spending.

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