U.S. Fiscal Policy Explained

[Riyame]

Got this from a Canadian forum and I thought you guys might like it. Kind of political though

BRILLIANTLY EXPLAINED

This rather brilliantly cuts thru all the political doublespeak we get.
It puts it into a much better perspective.

Lesson # 1:

* 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: $15,891,000,000,000
* Recent budget cuts: $ 38,500,000,000

Let's now remove 9 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: $158,910
* Total budget cuts so far: $3.85

Got It ?????

OK now Lesson # 2: Here's another way to look at the Debt Ceiling:

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 ceilings.

What do you think you should do ......

Raise the ceilings, or pump out the crap?

Your choice is coming Nov 6, 2012

[Alaphablue]

You keep this up you will be on the no fly list And accused of being a communist spy Riyame GavrIkov

[piotr]

That's a brilliant idea for helping people get their heads around those astronomical figures but I think the arithmetic is incorrect. In all of the figures, bar the last, they are removing 8 zeroes or dividing by 10^8(=100,000,000). The correct debt reduction figure for the household would then be $385. It should read:

Lesson # 1:

* U.S. Tax revenue: $2,170,000,000,000 (2,170,000,000,000 / 10^8 = 21,700)
* Fed budget: $3,820,000,000,000 (3,820,000,000,000 / 10^8 = 38,200)
* New debt: $1,650,000,000,000 (1,650,000,000,000 / 10^8 = 16,500)
* National debt: $15,891,000,000,000 (15,891,000,000,000 / 10^8 = 158,910)
* Recent budget cuts: $ 38,500,000,000 (38,500,000,000 / 10^8 = 385)

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: $158,910
* Total budget cuts so far: $385

$385 is still a paltry figure in relation to the debt: 0.24% i.e. less that one-quarter of 1%.

[Riyame]

That's a brilliant idea for helping people get their heads around those astronomical figures but I think the arithmetic is incorrect. In all of the figures, bar the last, they are removing 8 zeroes or dividing by 10^8(=100,000,000). The correct debt reduction figure for the household would then be $385. It should read:

Lesson # 1:

* U.S. Tax revenue: $2,170,000,000,000 (2,170,000,000,000 / 10^8 = 21,700)
* Fed budget: $3,820,000,000,000 (3,820,000,000,000 / 10^8 = 38,200)
* New debt: $1,650,000,000,000 (1,650,000,000,000 / 10^8 = 16,500)
* National debt: $15,891,000,000,000 (15,891,000,000,000 / 10^8 = 158,910)
* Recent budget cuts: $ 38,500,000,000 (38,500,000,000 / 10^8 = 385)

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: $158,910
* Total budget cuts so far: $385

$385 is still a paltry figure in relation to the debt: 0.24% i.e. less that one-quarter of 1%.

Opps. I saw it and reposted it instead of checking it

[rai]

but we still have more paper to print money on, inflation will shrink the debt. by the time the grandchildren pay it off, these will be trivial figures.