Putting the debt in perspective

Recently, I ran across this simple explanation of government debt and where the lawmakers and President are taking us. The numbers are not 2012 numbers, as it appears they are from a year or more ago.

Below is the government mess:

Tax revenue – $2,170,000,000,000

Federal spending – $3,820,000,000,000

New debt this year –$1,650,000,000,000

Debt from prior years – $12,621,000,000,000

New debt forward – $14,271,000,000,000

To understand this better, let us remove nine zeros from each item and visualize the numbers as a family situation:

Yearly Income – $21,700

Spending – $38,200

Debt this Year –$16,500

Credit Card Debt Prior Years – $126,210

New Debt Forward – $142,710

Our little family is headed for bankruptcy and so is the federal government.

If Congress and the president would recognize that the only way out is to cut spending, we might have a chance to survive. But, the president wants to increase spending some $4 trillion in the next four years. I bet he will get authorization to do so because Congress members won’t have the guts to cut entitlement programs – they will vote for more spending in order to keep their election prospects. Give more to the entitlement programs.

You liberals had better understand these numbers and stop pushing for spending. It will ruin our little family and most certainly it will ruin our country. It may even be too late now.

For those who would like to read an economist’s views on the state of our country, I recommend a book for your perusal- “After Shock.”

Don Bewley