Time to Talk About the Buffett Rule

[Yossarian]

It is sometimes hard for people to grasp the budget issues with all the zeros attached. We focus a lot on family budget issues here, so maybe it helps to convert it to scale:


UNITED STATES OF AMERICA
U.S. Tax revenue: $2,170,000,000,000
Federal budget: $3,820,000,000,000
New debt: $1,650,000,000,000
National debt: $14,271,000,000,000
Recent / April 2011 budget cut: $ 38,500,000,000

Now, 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
Amount of April 2011 belt tightening $ 385

But the way I understand it the current part of the $385 is only about 1/10, so call it $4.

Would that make our frugalistas happy?

[Alan]

It is sometimes hard for people to grasp the budget issues with all the zeros attached. We focus a lot on family budget issues here, so maybe it helps to convert it to scale:


UNITED STATES OF AMERICA
U.S. Tax revenue: $2,170,000,000,000
Federal budget: $3,820,000,000,000
New debt: $1,650,000,000,000
National debt: $14,271,000,000,000
Recent / April 2011 budget cut: $ 38,500,000,000

Now, 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
Amount of April 2011 belt tightening $ 385

But the way I understand it the current part of the $385 is only about 1/10, so call it $4.

Would that make our frugalistas happy?

And the effect of the Buffett Rule on your annual family income? $47
It does nothing to correct the problem, but does make for good political theater.

[ApatheticNoMore]

Letting the Bush tax cuts expire would have done a lot more than the Buffet rule yes. But it still doesn't solve the problem? Well of course not. But hey hard to propose an alternative solution that even does at much as that would to bring revenues in line with spending. I mean really propose any alternative solution that even does as much to balance the budget as that does (and then you get into political feasibility. Is anything political feasible anymore but catastrophe? seriously? ending all the wars isn't generally considered politically feasible for instance).

We don't need short term thinking, we need to get things fixed now while we can still make choices.

Really basically my thinking on EVERYTHING - insulate every house in America while natural resources are still relatively plentiful and the economy not in total collapse yet etc.. Just do it. But mine is doomer thinking for sure . But yes I wonder how long the window of choice on many things will persist.

[Gregg]

I mean really propose any alternative solution that even does as much to balance the budget as that does (and then you get into political feasibility. Is anything political feasible anymore but catastrophe? seriously? ending all the wars isn't generally considered politically feasible for instance).

2012 Dept. of Defense Projected Spending - $707.5 Billion
2013 Dept. of Defense PROPOSED Budget - $200 Billion

A nice simple 1/2 trillion dollar savings. We tell the Joint Chiefs that they have to make sure our shores are defended. They're sharp guys, they will get it done for $200B. Would be quite the wake up call for Saudi Arabia, Tajikistan, Israel, Denmark, etc!

You're right about the political feasibility of ending wars. What say not one voter in this country votes for the guys who perpetuate that attitude. That would be as quick a turn around as the budget.