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Budget Cuts

O

oletoes

Well-known member
Joined
Aug 4, 2011
Messages
75
This rather brilliantly cuts thru all the political doublespeak we get. It puts it into a much better perspective. So why is so hard for them to stop spending? It's straight up incompetence and reckless!

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: $385
 
oletoes said:
This rather brilliantly cuts thru all the political doublespeak we get. It puts it into a much better perspective. So why is so hard for them to stop spending? It's straight up incompetence and reckless!

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: $385
Click to expand...

This has been going around for some time, these are old numbers. it would be better to look at the 2011 numbers of $3.36 Trillion spent and $2.341 Trillion in revenue.

Here's why this is a false analogy regardless though. Krugman illustrated it pretty good in the NY Times recently.

"But Washington isn
 
yes, johnny, I agree completely.

It's pretty annoying hearing people that aren't economists and have no clue how to manage an economy start spouting off about deficit spending and using these absurd analogies.
 
Oh well if the New York Times says it then it must be true....and validated by New Years Chump!
 
oletoes said:
Oh well if the New York Times says it then it must be true....and validated by New Years Chump!
Click to expand...

the new york times didn't say it; a Nobel prize-winning economist, with years of study behind him, and articles that have stood up to criticism in peer-reviewed journals said it.

idiot.
 
It ain't the deficit. It's government's hand so far in my pocket that it's tickling my nads.
 
the post was simply to point out wasteful spending.....if the analogy exaggerates based on the author of the article's point of view well then so be it. It still doesn't change the fact that its true. He stated that we don't really owe China because we have other countries invested in us and it sort of balances itself out. While that may be true, how the hell does spending more and adding to the national debt help anything. It's where the money is going to and who is paying for it that pisses me off. We don't need a $100 million dollar tunnel constructed under a highway so that turtles can learn to use it rather than the road.

While I agree that a household budget is not the same as a government's budget, it needs to be under control. What we have going on right now is unacceptable.

and by the way, I don't claim to be an expert economists....anyone can see that the government causes more problems then they try to fix......and the are spending this country into the ground. don't try to sugar coat it.....it's bad!
 
smayschmouthfootball said:
It ain't the deficit. It's government's hand so far in my pocket that it's tickling my nads.
Click to expand...

Really, so how did you feel before since you are currently paying record low tax rates? Record low!
 
smayschmouthfootball said:
It ain't the deficit. It's government's hand so far in my pocket that it's tickling my nads.
Click to expand...
you know you like it.
 
Bush spent like a Democrat too......he is part of the problem.....
 
. . . and all this time I thought the worry had more to do with US financial markets collapsing rather then the actual sums involved.

I suppose Greece should just invest more of their money into foreign markets, and they would eliminate their debt problems like the US has? . . . and before you answer hell yes, consider who would then pay for their entitlements?

The sky is not falling, but it is certainly much lower in the heavens than it used to be. Is that a better analogy for ya?
 
oletoes said:
the post was simply to point out wasteful spending.....if the analogy exaggerates based on the author of the article's point of view well then so be it. It still doesn't change the fact that its true. He stated that we don't really owe China because we have other countries invested in us and it sort of balances itself out. While that may be true, how the hell does spending more and adding to the national debt help anything. It's where the money is going to and who is paying for it that pisses me off. We don't need a $100 million dollar tunnel constructed under a highway so that turtles can learn to use it rather than the road.

While I agree that a household budget is not the same as a government's budget, it needs to be under control. What we have going on right now is unacceptable.

and by the way, I don't claim to be an expert economists....anyone can see that the government causes more problems then they try to fix......and the are spending this country into the ground. don't try to sugar coat it.....it's bad!
Click to expand...

You bring up an interesting point, do you know who holds the largest portion of US debt? China? No. Brazil? No. US citizens? Bingo.

The majority of the US debt is owned by the US people through treasury bonds.
 
oletoes said:
Bush spent like a Democrat too......he is part of the problem.....
Click to expand...

No Democrat has ever spent anywhere close to like Bush spent in terms of the increase of the budget. He nearly doubled spending in 8 years, a 94% increase, contrast that to the 32% increase in spending over Clinton's 8 years. Only Ronald Reagan's 69% increase over 8 years comes close to Bush.

Most people are also just too stupid to realize that the 2009 Budget was not Obama's budget and besides about $100 Billion in stimulus he had nothing to do with it nor could he do much to change it.

Sure, spending needs to come under more control as we continue to recover, I just think that people go into a frenzy rather than analyzing what has actually happened.
 
johnny2x2x said:
smayschmouthfootball said:
It ain't the deficit. It's government's hand so far in my pocket that it's tickling my nads.
Click to expand...

Really, so how did you feel before since you are currently paying record low tax rates? Record low!
Click to expand...

The same that I've felt for at least 35 years. I'm on record for saying that the marginal tax rate for everyone should be 0 percent.
 
smayschmouthfootball said:
johnny2x2x said:
Really, so how did you feel before since you are currently paying record low tax rates? Record low!
Click to expand...

The same that I've felt for at least 35 years. I'm on record for saying that the marginal tax rate for everyone should be 0 percent.
Click to expand...

Really, your tax hasn't decreased in 35 years??? You're still paying the same rates now as in 1976? That's hard to believe.
 
johnny2x2x said:
smayschmouthfootball said:
The same that I've felt for at least 35 years. I'm on record for saying that the marginal tax rate for everyone should be 0 percent.
Click to expand...

Really, your tax hasn't decreased in 35 years??? You're still paying the same rates now as in 1976? That's hard to believe.
Click to expand...

Did you read my statement? I oppose the collection of federal income tax. The rate does not matter.
 
Just an FYI - I am not sure that a budget's increase has anything to do with anything, or even means very much. If, for instance, the budget increase was offset by an increase in revenue to cover it, less would complain.

. . . but that isn't what happend, and both presidents have increased our cumulative debt by a ton. I could give a shit in what years it all happened.
 
People also act like budgets are independent of each other from year year, that's not true. Bush was responsible for the 2009 budget, but there are obligations beyond 2009. We have obligations that we by law must pay or spend in coming years, it's not like you can slash the spending $1 Trillion without totally rewriting the law. Discretionary spending is just a small fraction of our total obligations, yet it is the only area that is really at play without throwing out years of established law.

Hey, I know spending needs to come down, it has a negative effect on the economy, but we need to look at this in more sober tones than just ranting and raving because of the latest RW attacks on the President.
 
Wow, I don't really disagree with anything. Although (any)W attacks are a two edged sword. Can't act like both "wings" aren't on the attack - it is that time of year.
 
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