THE USA ECONOMY – SIMPLE EXPLANATION

Even I can understand this simple explanation. I borrowed these statistics from an email sent to me. I made some effort to verify the numbers on the IRS website and they are pretty close.

Why S&P downgraded the U.S.- this puts it in perspective...

• 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 cut: $ 38,500,000,000

Let's 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

As you can see from this illustration, it won’t work with your home budget and it won’t with the government either.  Even if we raised taxes by 50% on every current taxpayer, not just the rich, everyone, we would still be adding to the debt because not even a 50% increase would raise enough revenue to match what your government spends.  We simply have to reduce spending. We have no choice.

The inability of the government not to realize the predicament they have put us  in suggests to me that “we the people” need new leadership at every level.  Class warfare is a smokescreen to delude the American people into believing that the government officials should not be held to account.  It is the rich or the Jews or the tea party or somebody else’s fault.  Not the government.  Well folks, it is the government, get used to it and do something about it.  VOTE to replace them.