Got this email from my dad recently. Really helps the average citizen understand the current financial imbalances in the U.S. Government and highlights how unsustainable this is.
“Over simplified and not exactly how the govt differs, but still
• United States 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
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 credit card: $142,710
• Total budget cuts: $385.00”
What would you do if your family was in this situation? Some family members might not want to cut or get a new job (raise income), but the prudent ones sure would.
If your parents were living like this and you were forced to inherit family debts upon their death, wouldn’t you want to do something. While the size of the U.S. Government makes it much tougher to do this quickly, the bigger the debts grow without significant action, the harder it becomes to fix.
The public and our elected leaders need to stop being selfish and short sighted and start taking significant action NOW to start living within our means on a long term basis.
For related thoughts and a plan for action, go to Warren Buffet’s Plan