Wednesday, August 24, 2022

Comparing U.S. Federal Spending with Revenue

The US Federal Government has a $2,775 BILLION deficit between the revenue taken in 2021 and the amount the government spent plus the amount the government spent includes $352 BILLION in net interest for money borrowed from previous years.

If that represented a household budget - the house would be in foreclosure, the credit cards would be maxed out, and the couple would have divorced over money issues.

Keep in mind that if interest rates climb - servicing that national debt will have to pay more, and more in net interest - which can only be accommodated by decreased spending or increased debt. This is unsustainable.

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