Friday, April 15, 2011

The Federal Deficit - In an Easy-to-Understand Example

This is a great way to understand the problem our Federal government has with the deficit right now.
We have a family that is spending $38,200 per year. The family’s income is $21,700 per year. The family adds $16,500 in credit card debt every year in order to pay its bills. After a long and difficult debate among family members, keeping in mind that it was not going to be possible to borrow $16,500 every year forever, the parents and children agreed that a $380/year premium cable subscription could be terminated. So now the family will have to borrow only $16,120 per year.
We need some serious reform in our federal deficit spending.

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