I got this email from a friend of mine and thought this would put the US debt ceiling deal into perspective:
The U.S. Congress sets a federal budget every year in the trillions of dollars. Few people know how much money that is so we created a breakdown of federal spending in simple terms.
Let's put the 2011 federal budget into perspective:
- · U.S. income: $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 cut: $38,500,000,000 (about 1 percent of the budget)
It helps to think about these numbers in terms that we can relate to. Let's remove eight zeros from these numbers and pretend this is the household budget for the fictitious Jones family.
- · Total annual income for the Jones family: $21,700
- · Amount of money the Jones family spent: $38,200
- · Amount of new debt added to the credit card: $16,500
- · Outstanding balance on the credit card: $142,710
- · Amount cut from the budget: $385
So in effect last month Congress, or in this example the Jones family, sat down at the kitchen table and agreed to cut $385 from its annual budget. What family would cut $385 of spending in order to solve $16,500 in deficit spending? It is a start, although hardly a solution.
Now after years of this, the Jones family has $142,710 of debt on its credit card (which is the equivalent of the national debt). You would think the Jones family would recognize and address this situation, but it does not. Neither does Congress.
Please let me know your thoughts about what is above. Even if you don't agree I won't sensor your comment.
Helping you retire on time,
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