A Lesson On Spending

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I received this in an email and thought it provided a great, easy way to picture our national debt by comparing it to a household budget. Subject: A LESSON ON SPENDING

A simplification, I know, but it still holds...

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

So... if this were your family budget, what would you do?