How To More Easily Understand U.S. Congress' Solution to their Federal Deficit Problem

#Money

Wed, Apr 13th, 2011 21:00 by capnasty NEWS

With U.S. Congress cutting a whopping $3.8 billion dollars from its budget, Harvard's Philip Greenspun asks: how many ordinary citizens can make any sense of what such astronomical numbers mean? The easiest way to understand this, he writes, it to divide everything by 100,000,000:

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.

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