4 ms·
Show HN: Why the US got downgraded
U.S. Tax revenue: $2,170,000,000,000
Fed budget: $3,820,000,000,000
New debt: $1,650,000,000,000
National debt: $14,271,000,000,000
Recent budget cut: $38,500,000,000
Let's remove 8 zeros and pretend it's 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
Puts it into perspective a bit, huh?
(Source: https://plus.google.com/u/0/115560790731793704368/posts/5TRu4CdDW3R)
- MaysonL 15y agoThis line of argument is basically BS. Families lack the power to tax, the power to issue currency, and the power [currently] to borrow for 10 years at less than 2% interest.
- lukeqsee 15y agoTrue; however, it seems to have at least some validity. (Please expound if I'm wrong.) Obviously because the US borrows in Dollar-denominated bonds they can control the value of those bonds, but the difference is still staggering.
- antimora 15y agoIt's a wrong way of looking. Rating is based on associated risks not the income and expenditure. Certainly they help calculate risk but you can't rely on it purely. The U.S. credit rating was changed after a political crisis arose, which put some uncertainly to pay creditors ontime.