Livonia Auto Insurance
THURSDAY, AUGUST 11, 2011

Federal Budget Understood

It makes no difference if you're a Democrat, Republican, Independent, Liberal or Conservative; understanding the federal budget and deficit can be mind-boggling. This came to us via email and helps to bring the issue into terms we can all understand - very simple actually. 

• U.S. Govt. income Taxes - Revenue: $2,170,000,000,000 
• Federal budget - Expenses: $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 

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 spent: $38,200 
• Amount of new debt added to their credit card: $16,500 
• Outstanding balance on their credit card: $142,710 
• Amount cut from their budget: $385

Doesn't take a Harvard economist to figure out the Jones family has some serious issues...
Posted 9:55 AM  View Comments

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