Given the attention the Federal Sequestration is currently receiving in the press and popular discourse we thought it would be beneficial (in a non-partisan way) to spell out the issues facing our country.
When people set out to discuss the federal budget, they often get glassy-eyed after $100 billion. We thought it would be easier to break down the numbers on a per household basis. Hope this helps you frame the issue.
Summarizing where we stood in 2012, the Gross Domestic Product (GDP) of our country was just under $129,000 per household. GDP is the market value of all officially recognized final goods and services produced within our country.
Our government spent just over $31,000 per household during 2012, which was roughly 24% of GDP. Of the $31,000 that Uncle Sam spent on your household last year, taxes and revenues only covered $20,387. The remaining $10,163 per household was borrowed.
Framed another way… how many of you would be able to borrow 33% of what your spent each year?
Stay tuned to Part 2