Futures and Options

Just another town along the road.

Tuesday, April 21, 2009

$1.2 trillion in deficits

But hey, we’re going to cut $100 million! (Pay no attention to the fact that this represents only 0.003% of the total $3.5 trillion budget.)

Greg Mankiw offers the following comparison using numbers that are more readily comprehensible to those of us who don’t have trillions at our disposal:

To put those numbers in perspective, imagine that the head of a household with annual spending of $100,000 called everyone in the family together to deal with a $34,000 budget shortfall. How much would he or she announce that spending had to be cut? By $3 over the course of the year–approximately the cost of one latte at Starbucks. The other $33,997? We can put that on the family credit card and worry about it next year.

Hey, at least it looks like Obama’s trying to make cuts.  I mean, his policies may be wrong but at least he’s symbolically in the right place.  Right?


posted by Zenmervolt at 11:30  

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