Best Summary Ever – of Current U.S. Finances
It is hard for us to understand what all the government spending figures are all about as we can’t relate to the billions or trillions of dollars (too many zero’s to comprehend) that are written and talked about. Take a look at the simple breakout below and I think you will come to understand why the alarm bells need to go off loudly and not only be heard, but action needs to be taken.
Finally, some politicians are waking up to the problems we face with an over expansive government. At the pace we are on, the U.S. will look like some insolvent European countries in the near future. If the interest rate we have to pay on our debt goes up like it has on some European countries, we will get there quickly. For instance, Italy’s bond interest rates recently rose from 4% to 7% in a period of a few month’s, putting them on the brink of financial collapse.
Why the U.S. was downgraded (numbers updated every second on http://www.usdebtclock.org):
• Annual U.S. Tax Revenue: $2,324,400,000,000
• Fed Budget: $3,626,600,000,000
• New Debt: $ 1,304,200,000,000
• National Debt: $15,215,300,000,000
• Recent Budget Cuts: $ 38,500,000,000
Let’s now remove 8 zeros and pretend it’s a household budget:
• Annual family income: $23,224
• Money the family spent: $36,266
• New debt on the credit card: $13,042
• Outstanding balance on the credit card: $152,153
• Total budget cuts: $385
Other scary facts:
Gross Debt/Gross Domestic Product =100.6% (Greece is at 140%) – Our debt is growing faster than our income.
This means the total U.S. debt is more than the entire U.S. produces in a year!
U.S Debt per citizen = $48,625 Debt Per Taxpayer =138,848!
U.S. Citizens – 312,829,778
U.S. Income Taxpayers- 112,381,314
Food Stamp Recipients – 46,906,688 – this number is growing faster than the number of taxpayers
These problems didn’t happen overnight and it all relates to two things; the government spends (Entitlement Programs, Defense & Debt Interest are three big items) more than it takes in and this condition has been getting significantly worse the past three years as fewer people are working (the number of people out of work for over 6 months has jumped tremendously) and paying taxes while the government burns through the tax money it collects from us.