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20 yrs in the USMC. MA international business and MBA. 4 years process engineer at GE aircraft M&I division. Now own a management company with 12 employees running dental offices. Managing doctors is like herding cats. ( Second language... More
  • Our Economic woes in Two graphs. 7 comments
    Feb 12, 2010 2:44 PM
    Time to polish off this instablog and relook at the issues.

    The spending is out of control and there seems nothing congress will do to stop it. Lip service by the two political parties (Dumbo and Jackass) will not return spending to a level that is sustainable by the incomes of the American people. We are in serious financial trouble. 

    Unfortunately I think preventing a day of reckoning is already to late.  

    The two graphs below say everything that needs to be said. A picture is worth a thousand words really is true.

    Thanks to for the following chart

    Deficit spending actual and projected

    Oboma claims he inherited the deficit. He did, but it was smaller than it is now and instead of fixing it he is adding to it. But one must also remember he voted for the spending in 07 and 08 as senator in a congress run by Democrats that bypassed Bush with a continuing resolution in 08. He inherited his own spending and now look at what we, our children and our grandchildren are going to inherit.

    Additionally it becomes apparent that the spending can not be paid based on the incomes of the American people. See the second graph below.

    We are in deep trouble and only a HUGE correction in spending will fix our problem since we now have a large interest payment compounded upon this dept that will add to the spending woes.

    Thanks to Political calculations for the chart and info that followes.

    September 21, 2010

    If you were asked to produce a single chart illustrating the biggest single political issue in America today, what would it look like?

    We're taking on that challenge today. Here's what we came up with:

    U.S. Total Federal Government Outlays vs Median Household Income, 1967 through 2009

    In this chart, where we've graphed the trajectory of the total spending of the federal government with respect to the median household income in the U.S. for the years from 1967 through 2009, we see that the U.S. federal government's spending today has decoupled from the primary source of income that is required to sustain it.

    Worse, it has literally "gone vertical" during the last two years.

    In mathematical terms, that's the sort of thing you see when you divide any number by zero. Applied to the chart above, that means that the relationship between the change in total government spending and the typical income earned by an American household from year-to-year is now "undefined."

    In practical terms, that means government spending has become completely disconnected from the ability of the typical American household to support it. And until this skyrocketing spending growth is arrested and reversed, we suspect that government spending has become disconnected from the ability of any American household to support it.

    Data Sources

    White House, Office of Management and Budget. Historical Tables, Budget of the U.S. Government, Fiscal Year 2011. Table 3.1 - Outlays by Superfunction and Function: 1940-2015.

    U.S. Census. Table H-5. Race and Hispanic Origin of Householder -- Households by Median and Mean Income (1967-2009).

    Authors note. Things are headed in the wrong direction and it is just a matter of time till we are dead meat as the little kid said in Mel Gibson's movie Mad Max. Somehow jumping in the trunk of the car and climbing down a rat hole seems futile at best.

    Best to prepare for an Austerity plan for America. Can you financially survive that?

    Disclosure: None but I will be taxed with every other American to pay these pending bills.
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Comments (7)
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  • TeresaE
    , contributor
    Comments (3041) | Send Message
    And we all know their tax revenue models are seriously out of whack.


    Great stuff, thanks for the graph.
    12 Feb 2010, 08:33 PM Reply Like
  • doubleguns
    , contributor
    Comments (9114) | Send Message
    Author’s reply » Sorry to reply so late TE. Thanks for looking. I have not been on here since 2/12. Overwhelmed with other issues right now.


    small business owner too and I am involved in GOOOH.
    23 Feb 2010, 07:32 AM Reply Like
  • TeresaE
    , contributor
    Comments (3041) | Send Message
    No problem DG. I'm here when I shouldn't be. February is tough on our time!
    23 Feb 2010, 08:00 AM Reply Like
  • doubleguns
    , contributor
    Comments (9114) | Send Message
    Author’s reply » TE have you ever been to That is what is taking up my time right now. Trying to do something about our country besides sitting in front of the TV cursing, watching our country and our businesses going down the tubes.
    25 Feb 2010, 08:57 AM Reply Like
  • TeresaE
    , contributor
    Comments (3041) | Send Message
    Actually, yes I have DG.


    You led me there first. My largest problem is the state I live in, our voters prove time and time again only two things matter: the continuing welfare state, and continuing to pay for the unions.


    If I could wave a magic wand, I'd be gone from here and move somewhere where there is more hope and less status quo.
    25 Feb 2010, 09:00 AM Reply Like
  • doubleguns
    , contributor
    Comments (9114) | Send Message
    Author’s reply » We have GOOOH groups in CA. Mostly Dems but they still want to stop the madness too. I would love for us to have a congress where we actually argue the issues and make decissions on issues not agendas. Seems we are destined to failure if we do not do something drastic like Senator Byhe said. We need that shocker.


    I moved out of CA in 97 and some of my friends there began moving the following year. I remember they were talking about raising my plates on my truck to over $2000 per year when I left, Arnold changed that however. CA is dead broke because there are too many voter initiatives sucking up money that just is not there and until that is changed the left will continue to hold CA hostage.


    I do not remember the illegal immigration cost being sholdered by the tax payers but it was a staggering number. That is another burden that is bankrupting CA.


    CA seems to be our Greece.


    Hope you can weather this storm and come out on the other side safely. Those that survive will probably do very well if the mother ship doesn't go down first. If that happens we have no safe harbor anywhere.
    25 Feb 2010, 09:44 AM Reply Like
  • TeresaE
    , contributor
    Comments (3041) | Send Message
    Amen friend.
    25 Feb 2010, 07:10 PM Reply Like
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