Yes, you read the headline correctly. The Congressional Budget Office has predicted that the final budget deficit, the amount by which the government spends more than it takes in for a year, will close the 2012 fiscal year at about $1.1 trillion (see it here: http://www.cbo.gov/publication/43539). The government will have spent $3.8 trillion while taking in revenues of $2.7 trillion. And yes, I must through this out there, taxing the rich more will not change the $1.1 trillion deficit. See those numbers here: http://loudmouthelephant.blogspot.com/2012/03/tax-rich-obama-class-warfarecampaign.html
This post isn't scientific; it's just some thoughts about these numbers. Think about this:
- The US government spends $1.1 trillion more than it receives. That's 40.7% more than it takes in. If the government was an average American worker earning $40,000, taxes aside, that worker would be spending a little more than $56,000 every year.
- At $3.8 trillion in yearly expenditures, the government spends around $121,000 per second! If the average American earns $40,000 per year, our government spends approximately 3 yearly incomes per second.
- Other figures: This is almost $10.5 billion per day, $316 billion per month.
- With a deficit of $1.1 trillion the government spends about $34,000 more than it receives every second. Imagine that: adding $34,000 to the government's debt total for every second it exists.
- There are approximately 310,000,000 Americans. Our government's total debt is approximately $16 trillion. That means the second you're born in 2012, you now have $51,613 of government debt over your head.
My biggest question: how can we even exist when the government spends nearly three times the average Americans' yearly income every second? Why are we spending so much money? Well, according to this budget analysis, we spend $2.055 trillion on Social Security and Medicare payments alone. It's clear we have a spending problem, and things need to change. Perhaps pulling away from an entitlement, let's-simply-take-care-of-everyone state is a start.