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chadmyers/us_debt_as_household.txt

Created February 17, 2011 21:43
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If the US Government were the average American household, what would our financial situation look like?
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us_debt_as_household.txt
This is an example given to us from Duquesne University Economics Professor Antony Davies:
QUOTE:
If the Federal government were scaled down to the size of the average US household, here’s what its finances would look like:
* The Federal government would earn $50,000 a year in tax revenue (the same as the average US household).
* It would be $325,000 in debt.
* It would pay almost $10,000 a year in interest on that debt.
* Last year, it would have spent $79,000.
* This year, it is hoping to spend $86,000.
The $100 billion in spending cuts (that some politicians view as draconian) would be equivalent to the household cutting its $86,000 in planned spending down to a mere $83,700. Not a bad start, but the household has another $33,700 to go before it balances its budget.
ENDQUOTE
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