Four of our diplomats were slaughtered inside of the American Embassy in Libya when protesters heavily armed with guns and explosives stormed the compound. The American flag was torn down inside the embassy in Tunisia and the Al Qaeda flag raised in its place. Rioting Muslims are burning the American flag in the street outside the American embassy in London. Newspaper headlines are reporting that riots against America are breaking out around the globe.
Obama sends Jay Carney to explain to the American people that these acts are not against America, it’s just that some Muslims didn’t like a film. The exact words issued by the White House through their spokesman were:
“This is not a case of protests directed at the United States writ large or at U.S. policy, this is in response to a video that is offensive to Muslims’
Our credit rating was just downgraded again today from AA to AA-. The unemployment rate has remained over 8% longer than any period since the Great Depression of the 30’s. So many have dropped completely out of the job market that 88 million Americans do not have a job; that’s one out of every three that is not employed. And this President thinks he should be re-elected?
The money is running out in Britain. When the money runs out, riots are what you get. If you hand feed a voracious wild animal, don’t expect gratitude for the handout or understanding when the food is gone.
When the growth rate of spending exceeds the growth rate of income the money will run out. It is not an opinion or philosophical point of view; its just arithmetic. When the only solutions the arithmetic allows, require drastic reductions in government largesse, there comes a point when the only choices are riots now or greater riots later. Here in America we are on the cusp of such a fulcrum point.
Here at Random Thots we have come up with a simple table that gets rid of all those zeros and provides some perspective we can understand. All the government figures are for the year 2010. We took a hypothetical family and gave them an income of 80,000 dollars. Then we calculated the proportion our family’s income was to the federal government’s total tax and other revenue. Finally, we applied the same proportion to other government figures like debt and total spending. Here is what we got.
Federal Revenues (billions) 2,217 Family income (dollars) 80,000
Federal spending 4,472 Family spending would be 161,371
Federal debt 13,561 Family debt would be 489,346
Annual interest 414 Family equivalent 14,940
Can you assure me the money will not run out? Can you assure me there will not be riots in the streets, right here in River City?
You can relate other government financial figures for 2010 to an 80,000 dollar income by multiplying the federal number as expressed in billions by 36.0858. Actually 36 is close enough for government work.
We chose accrual accounting for the federal spending in the table. Accrual accounting records an expense when an obligation is incurred; cash accounting ignores the expense until the day it is paid. Under cash accounting federal spending was about 2,780 B and which would equate to 100,389 for the family, a much lower number, but also a much less realistic one.