• When you click on links to various merchants on this site and make a purchase, this can result in this site earning a commission. Affiliate programs and affiliations include, but are not limited to, the eBay Partner Network.

Federal Budget 101

gunnar

Well-Known Member
Joined
Apr 7, 2010
Messages
1,006
Reaction score
1
Location
MN
Federal Budget 101

The U.S. Congress sets a federal budget every year in the trillions of dollars. Few people know how much money that is, so we created a breakdown of federal spending in simple terms. Let's put the 2011 federal budget into perspective:
* U.S. income: $2,170,000,000,000 (2 trillion, 170 billion)
* Federal budget: $3,820,000,000,000 (3 trillion, 820 billion)
* New debt: $1,650,000,000,000 (1 trillion, 650 billion)
* National debt: $14,271,000,000,000 (14 trillion, 271 billion)
* Recent budget cut: $38,500,000,000 (38 billion, 500 million, about 1 percent of the budget)

It helps to think about these numbers in terms that we can relate to.. Let's remove eight zeros from these numbers and pretend this is the household budget for the fictitious Jones family.

* Total annual income for the Jones family: $21,700
* Amount of money the Jones family spent: $38,200
* Amount of new debt added to the credit card: $16,500
* Outstanding balance on the credit card: $142,710
* Amount cut from the budget: $385

So in effect last month Congress, or in this example the Jones family, sat down at the kitchen table and agreed to cut $385 from its annual budget. What family would cut $385 of spending in order to solve $16,500 in deficit spending? It is a start, although hardly a solution.

Now after years of this, the Jones family has $142,710 of debt on its credit card (which is the equivalent of the national debt). You would think the Jones family would recognize and address this situation, but it does not. Neither does Congress.

The root of the debt problem is that the voters typically do not send people to Congress to save money. They are sent there to bring home the bacon to their own home state. To affect budget change, we need to change the job description and give Congress new marching orders.

It is awfully hard (but not impossible) to reverse course and tell the government to stop borrowing money from our children and spending it now..

In effect, what we have is a reverse mortgage on the country. The problem is that the voters have become addicted to the money. Moreover, the American voters are still in the denial stage, and do not want to face the possibility of going into rehab.

By: DAVID THOMAS
Chief Executive Officer
Equitas Capital Advisors LLC

http://www.equitas-capital.com/people_david_thomas.htm
 

Roadcuda

Well-Known Member
Joined
Sep 10, 2008
Messages
10,547
Reaction score
297
Location
Rocky Hill, Ct
That does explain it well! :brickwall: The only problem is that the people who really need to see it, won't, or, and this is most likely, they will ignore it because they don't really care about what the consequences will be because they think the money we make, and pay in taxes, is theirs to spend as they please.
 
Back
Top