Wednesday, August 24, 2011

Putting the National Debt in Perspective

Before getting to the guts of this post, let me say just a few little things...
1. This blog is not meant to be a political platform. No matter what your political view, my guess is you would agree that our nation has a bit of a debt problem.
2. I don't know who made this up. It was an email that was forwarded to me. I've taken a little poetic license, but props to whoever had the idea first!
3. You should have a budget, and I hope it doesn't look like this!

If you want to understand the magnitude of the recent debt and budget
reduction actions agreed to by Congress and the President, this
non-partisan example really puts it in perspective.

*      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 (about 1 percent of the budget)

It helps to think about these numbers in terms that we can relate to.
Therefore, let's remove eight zeros from these numbers and pretend this
is the household budget for the fictitious Jones family:

*      Total annual income for the Jones family: $21,700
*      Amount of money the Jones family allocates in their budget: $38,200
*      Amount of new debt added to the credit card: $16,500
*      Outstanding credit card debt: $142,710
*      Recent budget cut: $385

I really hope your personal budget doesn't look like this! Debt can be completely overwhelming. Trust me, I know! It can be dealt with though. I'll end with this picture I found even though I've posted it before.

No comments: