Wednesday, 18 July 2012

A clever way of looking at the United States economic condition

This from an occasional reader.  Puts everything into perspective.  Too cute?  Or just very clever. 

* 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 cuts: $ 38,500,000,000

Let's now 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

Interestingly, I just found a web site that calls itself the U.S. National Debt Clock, and it says that outstanding public debt of the United States as of July 19 is $15.9 trillion, even larger than the number reported above. Well, well.

1 comment:

  1. OOh the insidious household budget analogy. Yes, the US government is running up too much debt, but what leads you to believe that the US government suffers from much any of the constraints implied by the household analogy?