A trillion dollars. That is a hard number to wrap your mind around. I wanted to try and make what is happening in our government easy to understand. The only problem is that most of us have a hard time understanding how big a billion is. A billion is 1000 million. One hundred billion is 10,000 million. A trillion? 100,000 million dollars! I know… still impossible to understand. So I have a different idea that might make this easier to understand. Step 1:
Estimated income for Federal Government is 2,381 billion dollars, or 2.381 trillion dollars. This number is what the president and his lackeys came up with. The CBO a non-partisan group of very smart people think 2,289 is probably a little closer to the mark.
The estimated expenses for the Federal Government are 3,552 billion dollars. That pesky group of smart people at the CBO thinks that it will actually be 3,669 billion dollars. I am going to use the estimates of the pesky, non-partisan, smart people for my example.
Before I go into my example there are a few more things to note:
- 1,362 billion dollars are being spent on discretionary spending
- 172 billion dollars will be spent on paying net interest
- At the end of 2009 the public will hold 7,987 billion dollars of debt
- At the end of 2010 we will hold 9,319 billion dollars of debt
I could get a lot more in depth but I really think this is enough information to make anyone a little… oh what is the word I am looking for? (see last sentence of this article)
Step #2 So here is my example with applying percentages to the above facts to a $100,000 salary. This is about an every day Joe or Jane who has to manage a budget and here is what their situation would look like.
Gross income $100,000 a year
They don’t have to pay taxes! Hooray for them.
They are planning on spending:
House payment 4,000 a month (48,000 a year)
Car expenses 1,000 a month (12,000 a year)
Food 1,500 a month (18,000 a year)
Utilities 1,000 a month (12,000 a year)
Miscellaneous expenses 250 a month (3,000 a year)
Interest that they owe on credit cards (8,000 a year)
OK… lets add this up *picture an old fashion cash register ringing up a total* $101,000. Houston we have a problem. At this point I think most of us would start looking at a few different options. But that is you and YOU are NOT the Federal Government. After all it is their job to stimulate the U.S. economy. So here is what our everyday Joe or Jane does.
Ice Skating lessons $1,000 a month (12,000 a year)
Charities $3,000 a month (36,000 a year)
Going out to eat $1,000 a month ($12,000 a year)
Oh no! Another $60,000 will now equal $61,000 in the hole for this year. I still have not told you what is going on in the background. You know that $8,000 a year they pay in interest? Well the balance of that credit card is $400,000. Now this Joe or Jane has a really good plan. They have sat down and forecasted where they want to be by the end of the year 2019. You are probably thinking to yourself that they are going to pay off their credit card and stop ice skating lessons and maybe move into a smaller house. But I they think it will be a good idea to run their credit card up to a balance of $755,000!
There is one last little hope for this person. Look how charitable they are with money they don’t have. Let me tell you about the charity they give to. It rewards people to have children out of wedlock. It rewards people for not working. It rewards people for not getting an education. That is just the surface of what an ill conceived charity this Joe or Jane gives money to. Does this surprise you given the information above?
FOLKS… this is EXACTLY what our Federal Government is doing with OUR MONEY. Except it isn’t $100,000 we are talking about. We give them an annual budget of $2,289,000,000,000 and this is what they do with it!!!!!