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FBN’s Gerri Willis on what a family’s household budget would look like if it spent like the government does.
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There -- -- recently call this segment back of the envelope we try to explain in plain English some of the more Koppel make complicated financial issues and no doubt the big issue today the fiscal cliff.
You may be asking yourself what is this still important what is so cataclysmic about our nation's finances.
That we need to implement these monster tax increases and make.
Draconian spending cats.
Well if you want to understand the government and its problems take a look at these numbers.
Let's start with tax revenues these of the nation's tax revenues what you get here at 2.4 four trillion and you come and that's all it is really.
And look at these heroes.
Very big number -- let's look at the spending.
In the federal budget and you'll notice this number bigger than that number not -- -- the deficit -- look -- much of debt we're adding this year it's over a trillion dollars right here that's just one year my friends.
Federal government running up the tab of a trillion dollars in the year.
Our total debt we talk about this number all the time sixteen point 35 trillion.
Look at zeros again.
Very big number and I -- you're not arms around these numbers but -- -- -- on a piece of paper it's easier.
But I thought it would be even easier if we thought about one American household.
What do we took those numbers and translate it to one thing ambling.
Well -- you ran your household like the federal government here's what you be looking at your family income let's say 24400.
Bucks.
You're spending.
35400.
Dollars again look at this with what's going on here he can't do this right.
If if -- -- spending 3500 got 35000 dollars and only had 24000 coming in.
It's a nightmare.
And then the new debt would be 101900 bucks again it's a nightmare.
OK so let's talk about your total credit card debt.
If you were on a par with the federal government.
Your total debt would be a 163000.
Dollars when you're not even earning 25000.
You would be.
In huge trouble.
You would be insolvent.
I would call you would deadbeat.
Of course you're too Smart to do something this stupid but Capitol Hill is not.
And that's why the fiscal cliff is so very important because they're spending so much more money than they're taking -- running up the debt.
That we're gonna have to pay for down the road.
