A Coming Economic Earthquake?

images-3With the “fiscal cliff” looming, I rather like this comparison of the federal budget fiasco currently underway to a typical family budget that a friend recently showed me.

US tax revenue  $2,170,000,000,000
Federal budget  $3,820,000,000,000
New annual debt  $1,650,000,000,000
Existing National debt $16,000,000,000,000
President Obama’s budget cuts          $4,000,000,000

Remove 8 zeros and view this as if it were a regular household budget:

Annual income   $21,700
Money the family spent   $38,200
New debt on credit card   $16,500
Outstanding credit card debt $160,000
Total budget cuts so far          $40


So, for all the posturing and criticisms going back and forth between Republicans and Democrats, the net affect of the proposed budget cuts (over 10 years, no less!) is negligible to the point of being meaningless.

Well, I’m feeling depressed motivated now. And depressed, too. Perhaps it’s too late to avoid the “coming economic earthquake”. Hey, someone really should write a book with that title.