Unexpectedly Intriguing!
September 25, 2013

How much would the U.S. federal government need spend per household to even come close to balancing the annual U.S. federal budget?

The answer is presented in a single picture below:

U.S. Total Federal Government Spending per Household vs Median Household Income, 1967-2012

Comparing the relative location of the Zero Deficit Line on the chart, which is based on the overall trend of the U.S. federal government's total receipts with respect to median household income from 1967 through 2008 (before President Obama was sworn into office), with the level of spending done by the U.S. federal government in 2012, we find that the federal government would have to reduce its spending by $7,690 per U.S. household to even get anywhere close to a balanced budget.

To get a sense of how much money that really is, please consider that in 2012, there were 122,438,420 U.S. households.

Also keep in mind that the U.S. national debt will only continue to rise if the amount of federal government spending keeps falling on the wrong side of the Zero Deficit Line.

References

White House Office of Management and Budget. The Budget for Fiscal Year 2014, Historical Tables. Table 1.1. - Summary of Receipts, Outlays, and Surpluses or Deficits (-): 1789-2017. [PDF Document]. 10 April 2013.

U.S. Census. Current Population Survey. Historical Income Tables: Households. Table H-5. Race and Hispanic Origin of Householder - Households by Median and Mean Income. [Excel Spreadsheet]. 17 September 2013.

Labels: ,

About Political Calculations



blog advertising
is good for you

Welcome to the blogosphere's toolchest! Here, unlike other blogs dedicated to analyzing current events, we create easy-to-use, simple tools to do the math related to them so you can get in on the action too! If you would like to learn more about these tools, or if you would like to contribute ideas to develop for this blog, please e-mail us at:

ironman at politicalcalculations.com

Thanks in advance!

Recent Posts

Applications

This year, we'll be experimenting with a number of apps to bring more of a current events focus to Political Calculations - we're test driving the app(s) below!

Most Popular Posts
Quick Index

Site Data

This site is primarily powered by:

This page is powered by Blogger. Isn't yours?

Visitors since December 6, 2004:

CSS Validation

Valid CSS!

RSS Site Feed

AddThis Feed Button

JavaScript

The tools on this site are built using JavaScript. If you would like to learn more, one of the best free resources on the web is available at W3Schools.com.

Other Cool Resources

Blog Roll

Market Links
Charities We Support
Recommended Reading
Recommended Viewing
Recently Shopped

Seeking Alpha Certified

Archives
Legal Disclaimer

Materials on this website are published by Political Calculations to provide visitors with free information and insights regarding the incentives created by the laws and policies described. However, this website is not designed for the purpose of providing legal, medical or financial advice to individuals. Visitors should not rely upon information on this website as a substitute for personal legal, medical or financial advice. While we make every effort to provide accurate website information, laws can change and inaccuracies happen despite our best efforts. If you have an individual problem, you should seek advice from a licensed professional in your state, i.e., by a competent authority with specialized knowledge who can apply it to the particular circumstances of your case.