Sunday, January 6, 2013

Fiscal cliff economics simplified

Lesson #1:
-U.S. Tax Revenue:        $  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
-Planned Budget Cuts :    $       38,500,000,000

Remove 8 Zeros and pretend this is a household budget

Lesson #2:  
-Annual Family Income:    $   21,700.00
-Family Expense               $   38,200.00
-New Credit Card Debt:     $   16,500.00
-Outstanding CC balance:  $ 142,710.00
-Total belt tightening:       $         38.50

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 ceiling?
With thanks to Merrill Lynch

No comments:

Post a Comment