Sunday, September 25, 2011

Our economy.... Zombies aproacheth


Peter lays it out, again, not that many people care to listen.

From his piece:

National Review Online put the US budget into perspective a couple of days ago.

... take some of our key economic numbers — how much money the U.S. government brings in, how much it spends, and how much brave politicians are “cutting” to bring those numbers into balance — and simply lop off eight zeros (i.e., divide by 100 million) to make those numbers something that American families can relate to:

Why S&P Downgraded the US:
U.S. Tax revenue: $2,170,000,000,000
Federal budget: $3,820,000,000,000
New debt: $ 1,650,000,000,000
National debt: $14,271,000,000,000
Recent [April] budget cut: $ 38,500,000,000

Let’s 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
Budget cuts: $385

Even as a self-described policy wonk, I found this eye-opening. It’s harder to pretend that Washington leadership is serious about restoring fiscal sanity when their budget cuts are seen in this context.


1 comment:

Art said...

Simply illuminating, that reduction of zeros.

Amazing the amount of teeth-gnashing and hair pulling the miniscule reductions of outlays cause. What's going to happen when REAL cuts happen?

Yet the "Federal Family" policy is still "if you'll only raise our credit limit, we'll be able to spend enough to grow out of debt"