US and UK debt made simple

I found this on a discussion forum.

Remove 8 zeros from the US national figures and show it as a household budget.

• Annual family income: $21,700
• Money the family spent: $38,200
• New debt on the credit card: $16,500
• Outstanding balance on the credit card: $142,710
• Total budget cuts: $385

Here is the UK equivalent for 2011 (taking off 7 zeros)

Family income: £54,800 (including £25,300 of income tax and NI)
Family spending: £64,800
Credit card balance at start of year: £90,900
Interest on the balance: £4,300
Total amount added to the credit card: £14,300
Total planned budget cuts: £5,000

That shows what a mess we are in.

Be sociable, share!


  1. No, the U.S. budget at least has no relationship to a family budget because the U.S. can create money as they need it. To make that comparison is naive and silly.


  2. We would be in a mess . . . if our nations were households.


  3. Except a household can’t raise taxes or gather the £100bn lost every year through tax evasion… Stupid analogy really.


  4. Man you seriously need to get a life


  5. this is meaningless you obviously haven’t a clue about economics why don’t you stick with what you do know which is obviously very little.


  6. and the “credit card balance” is not the “families” debt, it is the bankers debt!

    As has been said, silly analogy.


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