Fed Budget Deficit Made Simple

From Bill Teitelbaum:

Numbers and political information can be so confusing.... 

I think this simple analogy will be helpful to gain an understanding whether we should be concerned or not... 

  

  

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 cut: $ 38,500,000,000 

  

  

Let's 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 

  

Understand those "deep" cuts now? 

Cheers, Mel