Monday, December 26, 2011

The Federal Budget Explained (Simply)

Do not understand the federal budget and why the US got downgraded on our economy? Well the explanation below rather brilliantly cuts thru all the political doublespeak we get. It puts it into a much better perspective and is the same for many countries in Europe ...
Why the U.S. was downgraded:

* 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

Got It ?????

OK 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 massive 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. Make a good one.

2 comments:

Woody said...

Not original. Total copy job. All over the nets for two weeks.

http://imgur.com/0tC0W

Profit Prophet said...

Well d'ah...just extending the reach...