Tuesday, March 8, 2011

What If You Ran Your Household Like the U.S. Government

What if we took the current numbers being bandied about in terms of the 2011 federal budget, budget deficit and the spending cuts that Democrats are currently proposing and turned them into the equivalent of a household earning the median income in the US?

Sounds like fun.

I will use very round, very imprecise numbers. Because I can.

  • $2.1 trillion as the projected incoming revenue.
  • $3.7 trillion as the amount of the proposed 2011 budget.
  • $1.6 trillion as the projected budget deficit.
  • $10.5 billion as the proposed Democratic spending cuts.

    You can check here (pdf) for President Obama's actual budget proposal, which shows our numbers to be close enough for, well, government work.

  • OK, ready?

    Median household income in the US in 2009 (pdf): $49,777


    $49,777 is 0.00000237033333333333% of $2.1 trillion.

    And off we go.

    Your annual income is $49,777.00

    Your budget proposal calls for you to spend $87,702.33

    That is, you are spending $37,925.33 more than you make.

    The Democrats are proposing that you cut your spending by $248.89

    And that means spending will be reduced to the much more manageable figure of merely $36,479.43 more than you earn.

    And thus we see just how seriously serious the Democrats are about seriously reducing the serious deficit.

    Now what if we broke the numbers down into the equivalent of a semi-monthly paycheck?

    Let’s call it a Household Continuing Resolution (HCR-1).

    Your gross pay would be $2,074.04

    Your budget proposal would call for you to spend $3,654.26

    Your would be spending $1,580.22 more than you make.

    The Democrats are proposing that you cut your spending by $10.37

    And by doing so your spending would precariously plummet to the unbelievably low level of a mere $1,569.85 above what you earn per paycheck.

    Let’s throw up a couple of charts to illustrate the numbers above.

    First, let's show the annual income and the cuts necessary to keep pace with the Democrats:

    What If You Ran Your Household Like the U.S. Government

    And next the semi-monthly income:

    What If You Ran Your Household Like the U.S. Government II

    Oh, and if you are having trouble seeing the proposed spending cuts on the chart, don't worry, you are not alone. Let's blow the image up 300%:

    What If You Ran Your Household Like the U.S. Government?

    It's the yellow strip at the bottom. No, seriously, it's there.

    You know what Dick Durbin thinks of this level of spending cuts?

    “I think we’ve pushed this to the limit”

    Wait. What?

    The limit of fiscal irresponsibility? The limit of the American public's credulity? The limit of the American taxpayer's patience? The limit of chutzpah? There are so many ways in which he could be correct, none of which he intended, of course.

    Seriously.


    1 comment:

    1. Great,Hit. I am going to share this with my smart but liberal adult offspring.

      ReplyDelete