I received this in an email and thought it provided a great, easy way to picture our national debt by comparing it to a household budget.
Subject: A LESSON ON SPENDING
A simplification, I know, but it still holds…
Why the U.S. was downgraded:
- 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
So… if this were your family budget, what would you do?