This Is Budget Cutting? (Guest blogger Dick Richards)

A billion here, a trillion there… Who can make any sense of this? Well, let’s translate the numbers into a range some of us might be able to relate to. Proportionally speaking, our current federal budget situation is like a family making $50,000 per year but spending $75,000 per year.

Now that we are half-way through the current budget year, the Democrats in this family want to cut the planned spending by $700 down to $74,300, while the extremist Republicans want to cut the spending by $1300 all the way down to $73,700.

Here’s a graph to make it easier to see. The red line shows how much the family currently earns.

Keep in mind, this same family was spending less than $67,000 just two years ago, so taking spending down below $74,000 is unmistakably radical.

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About Terry Noel

I am an Associate Professor of Management and Quantitative Methods at Illinois State University. My specialty is entrepreneurship.
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