Monday, January 09, 2012

Understanding US National Economic Issues # 1

For Canadians, the discussion south of the 49th has a certain sense of unreality to it, especially when political spin from all sides gets involved. The following examples may assist in understanding, just in case our country ends up in a similar situation.

Lesson # 1: Revenue, Budget, and Budget Cuts, Income

  • * U.S. Tax revenue: $2,170,000,000,000
  • * Fed budget: $3,820,000,000,000
  • * New debt: $ 1,650,000,000,000
  • * National debt: $14,271,000,000,000
  • * Recent budget cuts: $ 38,500,000,000

Let's now 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
  • * Total budget cuts: $385

Lesson # 2: 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 pump out the crap?

Your choice is coming Nov. 2012

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