Bringing Down the House?

by Aon Hussain For weeks on end the debt ceiling deadline debate captured the public’s attention on a very serious fiscal situation. But what was actually accomplished in terms of solving our nation’s problems? Here’s a look at the projected numbers for fiscal year 2011. US Tax Revenue: $2,228,000,000,000 Federal Budget: $3,708,000,000,000 New Debt: $1,480,000,000,000 National Debt: $14,584,000,000,000...

by Aon Hussain

For weeks on end the debt ceiling deadline debate captured the public’s attention on a very serious fiscal situation. But what was actually accomplished in terms of solving our nation’s problems?

Here’s a look at the projected numbers for fiscal year 2011.

• US Tax Revenue: $2,228,000,000,000
• Federal Budget: $3,708,000,000,000
• New Debt: $1,480,000,000,000
• National Debt: $14,584,000,000,000
• Recent Budget Cuts: $352,000,000

These numbers might be a little difficult to comprehend so understanding them from the lens of an everyday household might be a bit easier. By eliminating 8 zeroes just see how different the picture looks.

• Annual Family Income: $22,280
• Money the Family Spent: $37,080
• New Debt on the Credit Card: $14,800
• Outstanding Balance on Credit Card: $145,840
• Total Budget Cuts: $3.52

If your family was in a financial crisis like this in which your household is drowning from thousands of dollars of red ink, would reducing spending by three dollars actually make a difference?

What would you do differently if you were in charge?

Note: The estimates for tax revenue, federal budget, and new debt all come from the nonpartisanCongressional Budget Office. The total national debt figure comes from the federal government itself. When it comes to the recent budget cuts figure, a lot of estimates reported in the media place the figure closer to $38.5 billion. But CBO projects the figure closer to just $350 million.