I received this email from an FPU graduate, and friend, today. Sounds like it's time for Washington to attend FPU? What do you think?
A person I recently saw put our government’s spending habits into perspective, that a normal person can actually understand.
Say a household had an annual income of $25,000 per year, but say they spent $38,000 each year. Not only that, but they also owed $160,000 in debt. And for their total savings, they only had $2,000 in the bank.
$25,000 - Annual Income (taxes / revenue)
$38,000 - Yearly Spending ($3.8 Trillion = $3,800,000,000,000)
$160,000 - Debt ($16 Trillion = $16,000,000,000,000)
$2,000 - Savings (Reserves)
Looking at this household, you would quickly come to the conclusion that they simply can’t handle money. What you are looking at is our government! All you need to do is add 8 zeros to each of these numbers and you come out pretty closely to what Washington has done to our country. They have saddled our children with an incredible amount of debt, and want to go even further down this path. It is time that both sides take this issue seriously and actually do something about it.
Here is an idea. How about instead of raising the debt ceiling (so that we can go further into debt) and actually cut our spending. And not just a little bit, but drastically! How else are we going to be able to get a handle on the debt? Even if they passed a balanced budget amendment so that they can’t spend any more than they bring in, there is still a $16 trillion dollar bill that has to be paid. Try not paying on your Visa or MasterCard bill for a while and see how that goes.
And for the president’s ‘tax on the rich’ that he wanted, it is like the family above getting a bonus check for only $500. And this is for a family who is spending $13,000 more a year than they are making. It is a drop in the bucket!
Dave Smith is part of the KCC finance staff and a Dave Ramsey Certified Coach.