A friend forwarded an email called Federal Budget 101 which explains our fiscal crisis with stunning clarity, in terms so simple even a public employee union member could understand it. The author, an engineer, provided the basic numbers:
. Federal Revenues: $2,170,000,000,000
. Federal Budget: $3,820,000,000,000
. Budget Deficit: $1,650,000,000,000
. National Debt: $14,271,000,000,000
. Amount cut from the budget during the debt ceiling debate: $38,500,000,000.
Now, most people, unaccustomed to dealing in numbers of this magnitude, tend to gloss over them, dismissing them as something outside the realm of their comprehension. And this is where the engineer made his brilliant move: He created a fictional family called the Joneses, he lopped off the last eight zeroes in the numbers above, and came up with the Jones family budget:
Total annual income for the Jones family: $21,700
Amount of money the Jones family spent: $38,200
Amount of new debt added to the Jones family credit card: $16,500
Outstanding balance on the credit card: $142,710
Amount cut from the budget: $385.
So the question is, if you were a bank, would you lend the Joneses any money? If you were a merchant, would you bill the Jones family, or would you make them pay cash up front? Would you even mow their lawn without getting paid first?
The Jones family is in serious trouble, and our nation is as well. Of course, the argument can be made that the difference between the Jones family and the federal government is the Jones family can’t print their own money. That may be true, but with the S & P debt downgrade, and the Chinese Finance Minister’s comments over the weekend that we need to learn to live within in our means, it seems likely someone’s going to cut off our ink supply before long.
This is unquestionably the greatest crisis to face our nation since Barack Obama’s election, and how is the administration responding? As far as the downgrade is concerned, they are trying to shoot the messenger. First they claimed S & P doesn’t understand accounting. Then they said S & P overstepped its bounds. They reminded us credit agency failures were what got into this mess. It was classic dirty, bare-knuckled politics known as The Chicago Way, and these people play for keeps.
The downgrade thus dismissed, Obama has gone back out on the campaign trail, doing what he does so well, speaking of hope and change, and trying to buy off the public with fresh new “investments.”Some might wonder if he is actually this stupid, or is he in fact a Manchurian Candidate, manufactured specifically for the task of becoming President and destroying our economy?
To return to the Jones family budget analogy, Obama, playing the role of Mr. Jones, looks at his $21,000 income, his $16,000 shortfall and his $142,000 debt, and concludes, “Say, why don’t we build ourselves a swimming pool?” Mrs. Jones, no doubt up to her elbows in unpaid bills, asks, “Won’t that cost a lot of money?” Then Obama says, “Sure it will, but it’s an investment. Plus, we can use solar energy to heat the pool. Think how much money we’ll save on our gas bill!”