I recently received this from a friend and found it very illustrative:
Numbers and political information can be so confusing........I think this simple analogy will be helpful to gain an understanding whether we should be concerned or not...
U.S. Tax revenue: $2,170,000,000,000
Federal 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
Let's remove 8 zeros and pretend it's a household budget:
Annual family income: $21,700
Money the family spent: $38,200
Annual New debt on the credit card: $16,500
Outstanding balance on the credit card: $142,710
Total budget cuts: $385
Understand those "deep" cuts now? Also - who in the world borrows to cover 40% of one's expenditures? Good grief.