#ToughTalkingTroy is completely #debt fed up, but maintains that the status of the US debt is still the #1 economic indicator. Frankly, it doesn’t matter what the value of home was, is, should be, or whether you or your neighbor is employed or not, if the government cannot sustain itself. To put the impact of the recent congressional solution of controlling the nation’s debt into perspective, Tough-talking Troy is re-using some info from Jeremy M. Day, a blogger about business economics and technology.
“The U.S. Congress sets a federal budget every year in the trillions of dollars. Few people know how much money that is so we created a breakdown of federal spending in simple terms. Let’s 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 percent of the budget)”
It may help to think about these numbers in easy terms. Therefore, eight zeros have been removed from these numbers and just for this moment, let’s pretend this is the household budget for the hallway:
- Total annual income for the Smith family: $21,700
- Amount of money the Smith 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
Depressing, huh? Shocking even? Maybe there is consolation in the fact that our legislators after months of debate finally agreed on something (key word is finally). What this illustration proves is that the recent legislative action is nothing more than placing a band-aid on a gaping wound that is going to take major surgery to repair.
After all the bickering and jockeying for political prowess, Poor’s and Moody downgraded the government’s overall rating shortly after the decision to control the debt was announced. Contrary to the stunned reactions of congress, many Americans (including Tough-talking Troy) fully expected this to happen. If there is any bright light from this, it is the fact that there is so much turmoil globally that even downgraded, the US is still the best of the worst.
So, “how fed up are you?” Tough-talking Troy wants to know what you gonna ’bout it, bad boy?