Friday, August 19, 2011
My View- Understanding the U.S. Budget
2011 Federal Budget Deal
Federal Budget: $3,820,000,000,000 (3.82 Trillion)
Income: $2,170,000,000,000 (2.17 Trillion)
New Debt: $1,650,000,000,000 (1.65 Trillion)
Amount Cut: $38,500,000,000 (38.5 Billion) – about 1% of the total budget.
National Debt Total: $14,271,000,000,000 before this years budget.
Harry Reid is calling this a “historic amount“. The President said it is a “historic deal”. John Boehner simply said, “We've come to an agreement”.
Let’s put this in perspective. It helps me to think about these numbers in terms to which we can relate.
Let’s remove eight zeroes from those numbers and pretend this is a household budget for the fictitious Jones family.
Amount of money the Jones family spent this Year: $38,200
Total income for the Jones family this Year: $21,700
Amount of new debt added to the credit card this Year: $16,500
Outstanding balance on the credit card: $142,710
New outstanding balance on credit card: $159,210
So last week, the Jones family sat down at the kitchen table and agreed to cut $385 from their yearly budget.
So now you can see, in everyday terms we can all grasp, our budget situation. To say that our situation in this country is dire is an understatement. While Washington continues to dither, the situation we face continues to deteriorate.
The technical term for this is: "We are screwed!"
And that, my friends, is not my view, but it is reality.