This example rather brilliantly cuts through all the political doublespeak we get. It puts it into much better prospective.
• 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
Now – let’s remove eight zeros and pretend it’s a household budget:
• Annual Family Income: $21,700
• Money the Family Spent: $38,200
• New Debt on Credit Cards: $16,500
• Outstanding Balance on Credit Cards: $142,710
• Total Budget Cuts so Far: $38.50
Okay, now – 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 pump out the sewage?
Dan’s Note: If you think the answer is pumping out the sewage, then you disagree with all those politicians who just love little programs like rent control (i.e. tenant welfare)!