Fiscal Cliff Explanation for DC Dummies
Dec 26, 2012 10:45:57 #
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
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 so far: $ 38.50
Got It ?????
OK now,
Lesson # 2:
Here's another way to look at the Debt Ceiling:
Let's say, You come home from work and find
there has been a sewer backup in your neighborhood....
and your home has sewage all the way up to your ceilings.
What do you think you should do ......
Raise the ceilings, or remove the shit?
* 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
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 so far: $ 38.50
Got It ?????
OK now,
Lesson # 2:
Here's another way to look at the Debt Ceiling:
Let's say, You come home from work and find
there has been a sewer backup in your neighborhood....
and your home has sewage all the way up to your ceilings.
What do you think you should do ......
Raise the ceilings, or remove the shit?
Dec 26, 2012 11:00:03 #
cameraniac
Loc: Huntingburg, Indiana
Remove the shit?
Just a guess. I'm not very smart but I was a plumber! 8-)
Just a guess. I'm not very smart but I was a plumber! 8-)
Dec 26, 2012 11:23:24 #
4uiprnt wrote:
Lesson # 1: br br * U.S. Tax revenue: $ 2,170,000... (show quote)
Remember when a few hundred billion was a lot??
Love the explanation.
:thumbup: :thumbup:
Dec 27, 2012 08:59:58 #
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 so far: $ 38.50
Got It ?????
or per Obama
* let the family get a second job and double the income (tax the rich)
* now increase spending since you have more income (Obamas proposal)
* decrease miltary spending and layoff personel
* Get a new credit card and Increase debt since you have more income (print more money as in QE 3,4, 5, ect)
* add new family members since you have more income (dream act)
I would suggest that both parties got us here and niether have the guts to get it fixed.
The real problem is that the issues is not simple,
* all the politicians are under the thumb of thier money guys
* The fix is painful and some one will be getting less. *Current approach seems to be taking away benefits to the elderly. I think the current Obama and the democratic party approach is to kill them off quickly so the government can reduce social security and medicare payments
* 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 so far: $ 38.50
Got It ?????
or per Obama
* let the family get a second job and double the income (tax the rich)
* now increase spending since you have more income (Obamas proposal)
* decrease miltary spending and layoff personel
* Get a new credit card and Increase debt since you have more income (print more money as in QE 3,4, 5, ect)
* add new family members since you have more income (dream act)
I would suggest that both parties got us here and niether have the guts to get it fixed.
The real problem is that the issues is not simple,
* all the politicians are under the thumb of thier money guys
* The fix is painful and some one will be getting less. *Current approach seems to be taking away benefits to the elderly. I think the current Obama and the democratic party approach is to kill them off quickly so the government can reduce social security and medicare payments
Dec 27, 2012 09:19:11 #
Wow I think you guys are in a whole lota trouble. Good luck on all levels. :roll:
Dec 27, 2012 22:45:39 #
Lesson # 2:
"Here's another way to look at the Debt Ceiling:
Let's say, You come home from work and find
there has been a sewer backup in your neighborhood....
and your home has sewage all the way up to your ceilings.
What do you think you should do ......
Raise the ceilings, or remove the shit?"
________________________________________________
Not quite that way.
Debt ceiling is simply saying we will honor the debts that Congress has already incurred.
A little like calling your banker, your credit card companies and your brother in law who you owe money and telling them you are not going to pay them.
The financial commitment has already been made. We have purchased the air craft carriers, we made the farm bills law, we have told the people that have gone off to ware for us we will take care of their medical needs. Not raising the debt ceiling is a way of telling them we will not honor those obligations.
So your shit analogy is just that.
"Here's another way to look at the Debt Ceiling:
Let's say, You come home from work and find
there has been a sewer backup in your neighborhood....
and your home has sewage all the way up to your ceilings.
What do you think you should do ......
Raise the ceilings, or remove the shit?"
________________________________________________
Not quite that way.
Debt ceiling is simply saying we will honor the debts that Congress has already incurred.
A little like calling your banker, your credit card companies and your brother in law who you owe money and telling them you are not going to pay them.
The financial commitment has already been made. We have purchased the air craft carriers, we made the farm bills law, we have told the people that have gone off to ware for us we will take care of their medical needs. Not raising the debt ceiling is a way of telling them we will not honor those obligations.
So your shit analogy is just that.
Dec 28, 2012 00:26:34 #
Jim_In_Plymouth wrote:
Not quite that way.
Debt ceiling is simply saThe financial commitment has already been made. We have purchased the air craft carriers, we made the farm bills law, we have told the people that have gone off to ware for us we will take care of their medical needs. Not raising the debt ceiling is a way of telling them we will not honor those obligations.
So your shit analogy is just that.
Debt ceiling is simply saThe financial commitment has already been made. We have purchased the air craft carriers, we made the farm bills law, we have told the people that have gone off to ware for us we will take care of their medical needs. Not raising the debt ceiling is a way of telling them we will not honor those obligations.
So your shit analogy is just that.
I like these analogies, Jim, but I'm trying to understand this. Now, if it was YOU who purchased the aircraft carriers, and signed the farm bills, and committed to vets, BUT you had no money, what would you do?
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