Federal Budget For Dummies

Does the size of the numbers of our budget deficit and national debt make your head spin? You’re not alone.

To understand why Standard and Poor’s downgraded the United States’ credit rating, all you need to do is look at this analysis done by The Gainesville Tea Party.

Even liberals should be able to figure this one out. Especially the last line that shows how serious Washington is about restoring fiscal sanity and our economic health.

Keep in mind also that this analysis does not include the, absent any reforms, forty-three trillion dollars in unfunded and mandated obligations of Medicare and Social Security.

Why S&P Downgraded the US:

U.S. Tax revenue: $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

Let’s 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: $385

$385  of a cut is not serious. It’s laughable. Because this administration does not ever intend to reach a balanced budget.

Add to this example the annual deficits of the Obama Administration, $5 trillion. Add to that the $43 trillion in the unfunded obligations of Medicare and Social Security and the reality of all the debt we are facing as a country looks like this.

Outstanding balance on the credit card: $190,710

Total budget cuts: $385

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