Thursday, November 15, 2012

US-Income Compared to US Median Household

I have a hard time wrapping my mind around the immensity of the Federal Budget, so I decided to look up a handful of numbers and see if I can put them in terms a little more reasonable

First, some raw data:
    $16.2 Trillion in total national debt (source: usdebtclock)
    $3.54 Trillion in spending in 2012  (source: wikipedia)
  - $2.45 Trillion in taxes raised in 2012
    $1.09 Trillion further in debt this year.

I decided to compare these proportionally to the "average family" and so I compared the tax income of $2.45 Trillion to the US Median income of $44,389 (source: wikipedia) to determine some things:

If the United States government as a whole was a median family living in the United States:
   Annual Income:   $44,389
   Annual Expense:  $64,137
   Family Debt:        $293,510
The median family should set its budget on $3700 a month, and if the United States was a median family, it is currently spending $5345 a month. That would like overspending $1645 per month. Or overspending $55 a day. Or like the median American buying star bucks every day. For you and 15 of your friends.

Put another way, imagine you are a median household that's got a balanced monthly budget. Then you decided to buy a $70,000 new car at 7% interest with a 48 month loan, you would have to pay $1676 a month.

Let's look at how much it pays per month:  It would pay:
   ~$1070 a month in social security
   ~$1015 a month in defense
   ~$1015 a month in medicare and medicaid
   ~$320 a month in interest
Even DRASTIC thoughts like cutting all social security, all our defense, or all medicare spending won't help us even balance our monthly budget, let alone work to pay down our debt.

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