Saturday, January 19, 2013

Fiscal Sanity Explained - Why the Debt Is Important.

via The Looking Spoon.


Fiscal Cliff put in a much better perspective.

Lesson #1:

US Tax Revenue: $2,170,000,000,000
Federal Budget: $3m820,000,000,000
New Debt: $14,271,000,000,000
Recent Budget Cuts: $38,500,000,000

Let's now remove 8 zeros and pretend that this is a household budget.

Annual Family Income: $21,700
Money the Family Actually Spent: $38,200
New debt outstanding on the credit card: $16,500
Outstanding balance on the credit card: $142,710.
Total budget cuts so far: $38.50

Got it ??  Okay.  Now....

Lesson #2:

Here's another way to look at the Debt Ceiling:

Let's say you come home from work and find there has been a sewer backup in your neighborhood and your home has sewage all the way up to your ceilings.  What do you think you should do....

Raise the ceilings, or remove the shit?

 “The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. government can’t pay its own bills. ... I therefore intend to oppose the effort to increase America’s debt limit.”
— Then-Sen. Barack Obama, floor speech in the Senate, March 16, 2006

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