Monday, August 08, 2011

The American family financials

Imagine the scenario below was your financial model:

Total annual income for your family: $21,700
Amount of money your 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 family budget to address your financial crisis: $385

What is wrong with this picture? Spending 2X your earnings and you have 7X in debt. Now add nine more zeros to the numbers and you have the U.S. 2011 federal budget:

U.S. income: $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 budget cut: $38,500,000,000


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