Explaining The American Economy, Simply

Prior to the election I received one of those "pass it on" emails. Although I did not pass it on, I found it to be an interesting way to explain the state of the economy in a way that it can be understood by everyone. But, alas not every one did see it. Anyway, I thought it would be worthwhile to share some of the points from the message with you. So here goes.

Our first lesson deals with the level of income and debt of the US.
Total Tax Revenue of the U.S.: $2,170,000,000,000
Total Federal Budget: $3,820,000,000,000
Amount of New Debt: $1,650,000,000,000
National Debt: $14,271,000,000,000
Recent Budget Cuts: $38,500,000,000

Now, these were the figures at the time that this comparison was first written. You probably know that the National Debt is actually now somewhere over $16,000,000,000,000 and climbing by about 3 billion each day. But our purpose will be served well enough using the figures in the comparison example.
Now let us remove 8 zeros from each of the numbers and then pretend that we are looking at the household income and expenses of a family, one at the lower end of the income spectrum in America.

Total Annual Income: $21,700
Amount the family spent: $38,200
New debt added to credit card: $16,500
Balance on credit card: $142,000
Total budget cuts to date: $385

Imagine that this is your record of income and spending. Just how long do you think your family could survive with spending habits like this? Does this make it easier to understand just how much trouble this country is in?
Here is another lesson about the federal debt. Suppose there has been a sewage backup in your neighborhood and sewage has backed up in your house up to the ceiling. What to do, what to do! Would you raise the ceilings or pump out the crap.

Here's another thing to consider. For years, there has been conversation about the need for universal health care. Indeed the president spent most of his time and effort during his first term getting such a bill passed, and now that he has been re-elected, it will remain the law of the land. Supporters point to other countries, in particular England and Canada, with such a plan and talk about how good it will be for our country. Well time will tell. When the actual costs of the plan are felt beginning in 2014, many will be shocked.

A recent article in "Investor's Business Daily" provided some comparisons to the current level of medical service available in the U.S. The following comparison is an eye opener.

Percentage who survive cancer five years after diagnosis: U.S 65%, England 46%, Canada 42%
Percentage of patients diagnosed with diabetes who receive treatment within 6 months: U.S. 93%, England 15%, Canada 43%
Percentage needing hip replacement who receive it within 6 months: U.S. 90%, England 15%, Canada 43%
Percentage referred to a medical specialist who see one within one month: U.S. 77%, England 40%, Canada 43%
Number of MRI scanners per 1 million people: U.S. 71, England 14, Canada 18
Percentage of low income seniors who claim they are in excellent health: U.S. 12%, England 2%, Canada 6%

Do you get the picture? We are already feeling the influence of Obamacare and its effect on business. More businesses each day are announcing layoffs or changing full time employees to part time because of the provisions of Obama. I believe we have only begun to realize the overall effect on jobs that will result.
A last statistic that might explain at least some of the difficulties is the people who have served in presidents cabinets since the days of Teddy Roosevelt.

The percentage of cabinet members who had any private sector experience ranges from a low of 30% with Kennedy to a high of 56% with Reagan. Others on the extreme end of these figures are Carter and T. Roosevelt on the low end and Eisenhower and GW Bush on the high end. Twelve of the last 19 presidents have had 50% or less of their cabinet members who had ever worked in the private sector.

And now we have the Obama administration where only 8% of the cabinet has ever worked in the private sector. So you have a president trying to dictate to businesses in the most successful economy in history, how they should conduct business, when he has never worked for one, much less managed or owned one. He is assisted by a cabinet of leaders and advisors, 92% of which also have no business experience. Could this be part of the problem? I suggest that it just might be.

Hi, thanks for visiting and for reading my "simple explanation" of the American economy. We hear and read the numbers every day but I'm afraid for most the staggering amounts go right over our heads. For other articles on the economy, government, and related topics, visit my blog at http://dennisshipp.com. You'll also find some that are just plain entertaining.

Article Source: http://EzineArticles.com/?expert=Dennis_E_Shipp

Article Source: http://EzineArticles.com/7383913