US Debt Problem in simple terms

[Gimme Time]

L&G,

I received this a couple of weeks ago and provided a copy to all of our employees in hopes it would further stimulate them to become more interested and concerned about our current US financial condition. I can not say I have researched it to verify it’s accuracy but believe it to be a good representation of the challenges we and our children and grandchildren are headed for. I’m sure some of you have already seen it and I take no responsibility for its accuracy.

“It puts it into a much better perspective.

Lesson # 1:

* 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 cuts: $ 38,500,000,000

Let's now 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 so far: $38.50

Got It ?????

OK now Lesson # 2: Here's another way to look at the Debt Ceiling:

Let's say, You come home from work and find there has been a sewer
Backup in your neighborhood....and your home has sewage all the way up
To your ceilings.

What do you think you should do ......

Raise the ceilings, or pump out the crap?

Your choice is coming Nov. 2012.

SO MUCH TO UNDO“

 

[Hampton]

I like your post. Simple and to the point.

 

[Bucit]

I think our current government would opt for illegal immigrants to raise the ceiling for $5 an hour, pay no taxes, get free health care if they got hurt, send the money over seas and then pile more crap into the home.

 

[Trucky]

I think our current government would opt for illegal immigrants to raise the ceiling for $5 an hour, pay no taxes, get free health care if they got hurt, send the money over seas and then pile more crap into the home.

Don't forget the one-on-one tutor/interpreter for each child as they go to taxpayer funded schooling, doctors, dance lessons, etc. Then there would be the government provided tools at, let's say, about 600% more than you could get them at Ace Hardware, 13 guvmint supervisors at each job site to monitor the progress, a new Crap Czar to oversee the new Bureau of Crap and all that entails. Wowser... Maybe I'm not making it up as much as I thought when I started...

 

[spikedaddy99]

Nice one John!

 

[Doug Doty]

SpikeDaddy99

Do you boat out of NestEgg Marine ?? I saw you were from Marinette Wi. I bought a 39 Marinette aluminum cruiser from there about 3 years ago. Just curious.............

 

[Iprof]

Well before this heads to the holding tank. Why is it that all of us know you can't spend your way out of debt.


Ken

 

[MonacoMike]

Well before this heads to the holding tank. Why is it that all of us know you can't spend your way out of debt.


Ken

Because most of us were taught economics before it became a feel good class that bashes captitalism like most of the under 40 crowd.

MM

 

[BritLady]

What we need taught in schools, (and homes,) is "The Macawber Principle" from Charles Dickens’s novel, David Copperfield, published in 1850:

“Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”
​

Perhaps we should also send a copy to many of the Governments around the world (including our own :smt021.) Baroness Margaret Thatcher (UK Prime
Minister 1979-1990) often quoted "The Macawber Principle", which is the most basic but true principle of economics.

 

[Gimme Time]

Maybe it's time for all of us to print this out and post it at work as well as copy and forward to everyone we know to start a much larger conversation about this before the next election. I as many believe if he is re-elected for sure we are done. As it is now a lot of damage has been done that we could possible recover from over the next ten years. If we get four more years of this we are toast. Us older ones out there want and don't have near as much to lose as all those following us such as our children and grand childen of which many have alreay been born.

As for boating you might as well consider this a futurer (remember when some peolpe used to own boats and spend time out enjoying them), What ever happened to them?

 

[SeaVette]

: US Debt Problem in simple terms

As if this debt was all created in the last three years. Let's get real.

 

[MonacoMike]

Re: : US Debt Problem in simple terms

As if this debt was all created in the last three years. Let's get real.

"You want real?"

In the 39 months since Barack Obama took the oath of office as president of the United States, the federal government’s debt has increased by $5,027,761,476,484.56


The $5,027,761,476,484.56 in additional debt that the U.S. government has taken on during the 39 months that Obama has been president is more debt than the federal government accumulated in the first 219 years of the Republic.

It is also more than Bush 43 acumulated in 8 years.

 

[comsnark]

^== And that's the one NOT promising to increase spending and decrease revenue.

 

[Ten Years Gone]

I will never forget the lesson a very astute economics professor taught about the difference between a poor man and a wealthy man.


He who earns $100,000 annually that spends $101,000...is poor. He is $1,000 in debt.

He who earns $1,000 annually that spends $999...is wealthy. He owes no one.


Using this logic, a man of modest means, can be "wealthier" than a man of great means; because he spends less than he receives.

I don't know of a more simple formula! Why in the hell are they no longer teaching this in school?

(I actually know why, it was a rhetorical question.)

 

[kaz911]

The think that is wrong with the economy world wide is the long never ending "patches" of "pain killers"

All those help and relief packages is keeping the countries on the edge of bankruptcy - and everybody keeps lending to everybody else - so you end up with the same "buck" after its been round the block a few times. Only problem is now the buck is no longer a buck but 20 cents since so many others have taken an interest cut of it.

There is only one solution - let what fall that has to fall - an no more "aid" packages to bank, industry or privates.

Then we will get a clean start that is not constantly on the risk of collapse or economies controlled by debt.

All they/we have done is mascaraed the symptoms - and not cured the illness.

But it is hard to pull of the band aid.......

 

[MonacoMike]

^== And that's the one NOT promising to increase spending and decrease revenue.

...don't remind me...

The think that is wrong with the economy world wide is the long never ending "patches" of "pain killers"

All those help and relief packages is keeping the countries on the edge of bankruptcy - and everybody keeps lending to everybody else - so you end up with the same "buck" after its been round the block a few times. Only problem is now the buck is no longer a buck but 20 cents since so many others have taken an interest cut of it.

There is only one solution - let what fall that has to fall - an no more "aid" packages to bank, industry or privates.

Then we will get a clean start that is not constantly on the risk of collapse or economies controlled by debt.

All they/we have done is mascaraed the symptoms - and not cured the illness.

But it is hard to pull of the band aid.......

Well put. We only had relatively mild corrections until politicians said they would make it better...

 

[BritLady]

I will never forget the lesson a very astute economics professor taught about the difference between a poor man and a wealthy man.


He who earns $100,000 annually that spends $101,000...is poor. He is $1,000 in debt.


He who earns $1,000 annually that spends $999...is wealthy. He owes no one.


Using this logic, a man of modest means, can be "wealthier" than a man of great means; because he spends less than he receives.

I don't know of a more simple formula! Why in the hell are they no longer teaching this in school?

(I actually know why, it was a rhetorical question.)

My point exactly! This is the "The Macawber Principle" see post below.

 

[CV-23]

This could save some money and society!
http://www.youtube.com/watch?v=bWpK0wsnitc&feature=player_embedded

 

[comsnark]

^== And that's the one NOT promising to increase spending and decrease revenue.

...don't remind me...

Well, not to put too fine of a point on it. . .

. . . .so the party promising to increase spending and reduce revenue is also the one that believes that when you are outspending your income, the answer is to not pay the credit card.

Frankly. . I don't think anybody is interested in reducing the deficit or deficit spending.

 

[MonacoMike]

1) The first priority of a politician is always getting re-elected

2) Most politicians care far more about the opinions of interest groups than their constituents

3) You shouldn't ever take a politician at his word

4) Most members of Congress aren't particularly competent

5) Members of Congress are out of touch

6) Few of them will do anything to limit their own power

7) Most politicians only do the right thing becausethey're forced to do it

http://townhall.com/columnists/johnhawkins/2012/07/06/7_unhappy_truths_about_politicians/page/full/