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.

  686

 

You may also be interested in:

Use a Football to Recharge Your Phone
"The average person, Hershey said, was simply too poor to keep buying its products, and so allow the company to grow."
America Has Worse Inequality Than That Portrayed in 'Downton Abbey'
Money Faces
The 12 Biggest Ripoffs in America You're Well Acquainted With