According to the White House Office of Management
and Budget, the federal government collected $2.2 trillion in 2011. That includes revenue
from all sources: income taxes, payroll taxes, corporate taxes, excise taxes, estate taxes,
tariffs, and all other sorts of taxes and fees. Also in 2011, the federal government
spent $3.8 trillion and was $14.6 trillion in debt. These numbers are too large to comprehend.
Let’s put the federal government in perspective. The average American household earns about
$50,000 a year. Now imagine if the federal government were the size of an average household.
In 2011, this household-sized government would have spent almost $88,000, or $38,000 more
than it earned. That’s like the household spending its entire income and then buying
a brand new SUV. If the government spent all of its money, how did it pay for the SUV?
It used its credit card. Last year, the government spent all of its
money plus $30,000 more. That’s another SUV. And it did the same thing the year before
that. Our household-sized government has been spending more than its $50,000 income for
a very long time. In fact it has racked up a credit card balance of $320,000. The government
currently pays about 3 percent interest on its loans, so that means that our household-sized
government racks up about $10,000 a year in interest. Now imagine if you earned $50,000 this year,
spent $88,000, and had $320,000 on your credit card, that charged you an additional $10,000
a year in interest, you might be contemplating bankruptcy. Our government is no different.
Our government has demonstrated that it can’t be responsible with its credit card. It’s
time to take the credit card away, before it becomes impossible to pay the bills.