US Federal Budget

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US Federal Budget

The U.S. Congress sets a federal budget every year in the trillions of dollars. Few people know how much money that is. Below is a breakdown of federal spending in simple terms.

Put the 2011 federal budget into perspective:

U.S. income : $ 2,170,000,000,000

Federal 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 (about 1% of the budget)

It helps to think about these numbers in terms that we can relate to.

Remove eight zeros from these numbers and assume this is a fictitious household budget;

Total annual income for the family : $ 21,700

Amount of money the family spent : $ 38,200

Amount of new debt added to the credit card : $ 16,500

Outstanding balance on the credit card : $142,710

Amount cut from the budget : $ 385

So in effect last month Congress, or in this example the family, sat down at the kitchen table and agreed to cut $385 from its annual budget.

What family would cut $385 of spending in order to solve $16,500 in deficit spending?

It is a start, although hardly a solution.

Now after years of this, the family has $142,710 of debt on its credit card (which IS the equivalent of the national debt).

You would think the family would recognize and address this situation, but it does not - Neither does Congress!!!!!!