US Fiscal Cliff simplified for everyone. This puts things into a much better perspective as to the present US economic situation..
Lesson # 1:
* 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 so far: $ 385
Got It ?????
Lesson # 2:
Here’s another way to look at the Debt Ceiling:
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 ceilings, or remove the shit?
This is the problem with many people. If you have a cash flow ‘problem’, actually it is a personal behavior problem. If you are earning 21,700 per month and spending 38500 per month…you have to soon find a Godfather who will bear the gap EVERY MONTH. It better be your dad, because NOBODY else is going to. Now the best solution, OBVIOUSLY, is to spend less. However for the past 10 years your dad has bailed you out EVERY MONTH, you will ASSUME that he will continue to do it for the REST of your life, correct? Wrong assumption, yes, but has worked for the US so far….
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