Tag Archives: national debt

38.5 Billion in Budget Cuts…..So What!!!

Sometimes it’s important to see the humor in politics. For example, consider the 38.5 billion dollars that John Boehner and Harry Reid cut from the 2011 budget. What an “historic” achievement for Americans they crowed. Plus, they averted a government shutdown. Sure….right…great job.

It’s time to put this so-called great achievement in perspective. Most Americans don’t realize the interest alone on the national debt was 414 billion in 2010, according to U.S. Treasury Department calculations. That’s almost 1/2 a trillion dollars! I wondered how much the interest on the debt costs each day, so I decided to apply simple mathematics to the problem, (414 billion divided by 365), and discovered the interest alone on the national debt was 1.1 billion dollars per day in 2010. Of course, the national debt continued to increase in 2011, along with the interest.

So, just how historic is that budget cut? Well, if we divide 38.5 billion by the 1.1 billion in daily interest, it looks like the “draconian” 38.5 billion budget cut basically paid the interest on the nation’s debt for about 35 days. Woohooooo! What a super job our Washington leaders did.

And now for the funny part. If our D.C. leaders can find an additional 363 billion dollars to cut from the budget, the interest for the remaining 330 days of the year could be paid.