US Debt vs Family Debt ~ simple view of our problem

[melensdad]

Here is a simple way to look at the current US debt.

• 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: $14,980,000,000,000
• Recent budget cut: $ 38,500,000,000

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: $149,800
• Total budget cuts: $385

 

[jsnowy]

I very much appreciate this. It's difficult to understand the concept of the problem when we keep talking in billions and trillions. This is a fun little video that gives a good visual to the problem.
[ame]http://www.youtube.com/watch?v=cWt8hTayupE[/ame]

 

[Chefcook]

I like this one also..

[ame]http://youtu.be/0PaCGjjRX1U[/ame]

 

[jedi]

I very much appreciate this. It's difficult to understand the concept of the problem when we keep talking in billions and trillions. This is a fun little video that gives a good visual to the problem.
http://www.youtube.com/watch?v=cWt8hTayupE

This is the BEST visual video by far of the entire mess.
OP's numbers also do justice but since most American's that is their real budget right now (ie. just borrowing and borrowing) they don't see anything wrong with big brother doing that as well.

 

[CampingJosh]

OP's numbers also do justice but since most American's that is their real budget right now (ie. just borrowing and borrowing) they don't see anything wrong with big brother doing that as well.

Most? I think 10% unemployment runs somewhere close to 90% employment.

If everyone is borrowing so much money, why is the total credit card debt in the US declining?

Too much doom and gloom. I would love for the economy to be growing at a 7% clip instead of this 1-2% we have, but misstate reality in order to feel better about poor financial choices, either our own or the government's.

 

[melensdad]

Credit card debt is declining because many people can't afford credit cards anymore, others have chosen to reduce their total debt and reign in their spending, that involves eliminating credit card debt, it also includes not leasing cars every 2 years, trading up their homes for larger homes, etc etc.

The overall savings rate has also increased while we are in this economic downturn. People are simply spending less, holding more, being wiser with choices.

 

[RockofStrength]

Most? I think 10% unemployment runs somewhere close to 90% employment.

If everyone is borrowing so much money, why is the total credit card debt in the US declining?

Too much doom and gloom. I would love for the economy to be growing at a 7% clip instead of this 1-2% we have, but misstate reality in order to feel better about poor financial choices, either our own or the government's.

When you run out of cards to get or money to borrow, your borrowing will decrease. Our economy is actually attempting to return to the normal growth level it is supposed to have instead of this insane constant booming growth bubble brought on by incessant borrowing.