This information just received in an E-Mail from a friend helps to graphically explain why the financial position of the United States was recently downgraded.
The Best Summary Ever of why the U.S. was downgraded:
• 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: $385
Got it?
OK, 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?
1. Raise the ceilings, or
2. Pump out the sewage
Your choice is coming November 2012 for all incumbents.
H/T: llretired
