Federal Budget vs. Household Budget: How Do They Compare? – Economy

Dave Ramsey lays out the U.S. Government???s budget for 2011:

The federal government will take in $2.173 trillion in 2011. That???s their income, and it sounds pretty good. Until, that is, you factor in that the federal government will spend $3.818 trillion during the year. So, just like many families, the government???s outgo exceeds their income???to the tune of $1.645 trillion in overspending. That???s called the deficit. Altogether, the government has $14.2 trillion in debt.

What would that look like if a typical household lived the same way?

If their household income was $55,000 per year, they???d be overspending by 43%. That is, they???d be making $55,000 but spending $96,500. That means in 2011, they???d add $41,500 of debt to their current credit card debt $366,000!

Now do you see why cutting a measly $38 Billion, or even $61 Billion is not going to cut it? The Republicans and Democrats in Congress need to face reality.

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