This Is our Village

Sunday, September 11, 2011

A New Perspective of Looking at the US Debt

Why Standard & Poor downgraded the US credit rating:

1- U.S. tax revenue: $2,170,000,000,000.
2- Federal Budget: $3,820,000,000,000.
3- New debt: $1,650,000,000,000.
4- National debt: $14,271,000,000,000.
5- Recent budget cuts: $38,500,000,000.

Now, let's remove 8 zeros and pretend it's a household budget:

1- Annual family income: $21,700.
2- Money the family spent: $38,200.
3- New debt on credit cards: $16,500.
4- Outstanding balance on credit cards: $142,710.
5- Recent budget cuts: $385.

The above example certainly puts the U.S. debt into perspective, doesn't it?

2 comments:

  1. Please may I have everything explained this way in future, Thx mll.

    ReplyDelete
  2. Hi mllwpbfl,

    Very clever!

    Dave Israel

    ReplyDelete

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