Why S&P downgraded the US credit rating

Here is why S&P downgraded the US credit rating.

• 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 cut: $ 38,500,000,000

Now let’s 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: $385

2 comments:

  1. Ok, I like the way you put this into a household budget. Makes a lot more sense to me. Scary.

    ReplyDelete
  2. Sometimes it's best to simplify things so they make more sense, isn't it?

    ReplyDelete