Frequent Contributor
Roarmeister
Posts: 332
Registered: ‎04-21-2012
Put the federal cliff in perspective

So how much is the Fiscal Cliff deal that was recently worked out actually worth?  I know this isn't a complete & fair comparison -- for example, your family can't just print money like Bernake is doing, but it is an interesting perspective on the US debt situation.  The deal is a drop in the bucket and not a solution at all.  Tell the governement to get real and go back to work!  What woud a financial advisor tell this family to manage their situation?  Get another job?  Cut back on your spending by a 1/3?  That wouldn't even begin to make a dent in the debt, it would only cancel the deficeit and you still wouldn't be able to save for the kid's college fund or retire.  Heaven help you if you get sick and you don't have insurance!

 

Fiscal Cliff put in perspective: 
  
* U.S. Fed Revenue $    2,469,000,000,000
* Fed budget $    3,793,000,000,000
* New debt $    1,324,000,000,000
* National debt $  16,429,000,000,000
* Long term entitlement debt $  62,000,000,000,000
* Recent budget cuts $        38,500,000,000
  
Let's now remove 8 zeros and pretend it's a household budget: 
  
* Annual family income $             24,690
* Money the family spent $             37,930
* New debt on the credit card $             13,240
* Outstanding balance on the credit card $            164,290
* Long term entitlement debt (college fund, retirement fund, future health care) $            620,000
* Total budget cuts so far $                  385
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