Thursday, September 8, 2011

The U.S. Debt problem in terms we can all understand

President Obama gave his big speech on his plan for creating more jobs. As one would expect, he wants to print and spend billions more to create jobs.

It's amazing anyone takes him seriously.

I saw a good illustration of how bad our debt problem is in this country-

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

Now let’s remove 8 zeros and pretend it’s a household budget.

• Annual family income: $21,700
• Money the family spent: $38,200
• New debt on the credit card: $16,500
• Outstanding balance on the credit card: $142,710
• Total budget cuts: $385

Sure, take on more debt- makes a lot of sense.


Adam said...

I sent this to my dad, here is his response....That really puts it in perspective. Also, keep in mind that all the "budget cuts" they talk about in Washington only refer to cuts from already built-in budget increases for future years. For example, the federal budget assumes an increase of roughly 8% each if we cut $38.5 billion from a future budget that is after $305 billion of additional spending has already been planned (budgeted). You would still wind-up with an increase of $266.5 billion to the already $1.65 trillion of overspending. ITS ABSURD !!!

Woody Woodward said...

When a wise humble leader fails they admit their mistake and seek to right the wrong. When an arrogant prideful leader fails, they blame others and never admit they were wrong. As painful as it was, I listen to his every word. And as many of us conservatives figured, nothing new, just more ridiculous spending, more government regulations and nothing to encourage businesses to hire. The only thing that sunk in was his arrogant demand over 20 times, to “pass it now!” Sounded just like Palosi when she made the outlandish statement, “We need to pass the bill first and then find out what it’s in it.” And I thought Slick Willie was a bad leader.

no_absolutes said...

the outstanding "credit card" balance is more like the mortgage. how much is the country worth, minus 8 zeros? who doe we owe the money to-- oh yeah, us. what money? oh yeah, the money we print because our Constitution guarantees that we can do that and it only has value because we have an army and navy that says "gold standard? what gold standard?"

sovereign debt doesn't conform to the rules of a family budget. especially because that family, and its credit, lives INSIDE OF the thing you're comparing to it.