Relating Federal Finances to your personal budget

With numbers in the trillions it’s difficult to wrap our brains around the Federal Financial Picture.  Below is a way of looking at things which most of us can relate to.

 

“Fiscal Cliff” put in a much better perspective.

 

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:                                   $38.50