The U.S. Financial Crisis Explained

Here’s the story. Can you imagine running a country with these numbers?

  • 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: $16,271,000,000,000
  • Recent Budget Cut: $ 38,500,000,000      

It this hard to factor? Well, remove a total of eight zeros and pretend it’s a household budget.   

  • Annual Family Income: $21,700
  • Money Family Spends in a Year: $38,200
  • New Debt on the Credit Cards: $16,500
  • Outstanding Balance on Credit Cards: $162,710
  • Total Budget Cut this Year: $385    

Does this at all make sense?! American politicians are talking about raising the debt ceiling so that they can carry on.  So, here’s a neat little analogy for the debt ceiling issue:

  • Let’s say, you come home from work and find there has been a sewer backup in your neighborhood and your home has sewage all the way up to your ceiling. What do you think you should do…… raise the ceiling? or remove the slop?

 

 

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  1. Pingback: Redux: politics | By George Journal

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