Wednesday, November 2, 2011

Debt Simplified

These are some numbers from the US, but one can easily replace it with numbers from Greece, Italy, Spain, Zimbabwe, ... It is pretty clear that we are not addressing the problem, we are not even grasping it. (The $38.5 trillion number budget cut figure seems to refer to the budget cut deal that averted a US government shutdown in April 2011.)  (Source)

Some stats about the US government:

  • 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 

Now, remove 8 zeroes 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
Any questions?

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