If I Were the Government

in deficit, Government

So I saw an interesting graphic on Tumblr comparing the U.S. government spending to a median family income and how it might look, so I have tried my best to dredge up this comparison for Canadians.

This model is already flawed as I am only looking at the model where I (the Big Cajun Man) will take on the guise of the Federal Government and not all governments in general (which would change the debt number much as you will see). The average family income is borrowed from 2011’s median family income from Stats Canada as well.

The numbers I am using are gleaned from a report from Stats Canada, and are at best an estimation.

Income for the BCM Family $76,000.00
Spending Costs
   Life expenditures $74,512.00
   Debt charges $9,608.00
Total Spending $84,120.00
Net Income -$8,120.00
Debt charges as a percentage of income 12.64%
Current Family Debt $180,453.00
Debt after this year $188,573.00
Income Compared to Debt 42.12%

What does this mean? Well if I were the Government I’d be spending over 13% of my income on paying off my debt, however, if you look at my debt, it isn’t really that far out of whack, is it? A family with $180K worth of debt is a little high, and they should think about paying it off soon, but then again it is do-able, over a long period.

Oh and here is a nice graph I made too.

If I Spent the Way the Feds Spent

If I Spent the Way the Feds Spent

If you look at the U.S. Model it is a much higher Debt in comparison and a much more dire looking pay back scenario.

{ 4 comments }

  • Bryon Norris November 28, 2013, 11:39 AM

    While it’s true that many middle-class Americans own stocks or bonds, they tend to stash them in tax-sheltered retirement accounts, where the capital gains rate does not apply. By contrast, the richest Americans reap huge benefits. Over the past 20 years, more than 80 percent of the capital gains income realized in the United States has gone to 5 percent of the people; about half of all the capital gains have gone to the wealthiest 0.1 percent.

    Reply
  • Denis November 27, 2013, 4:05 AM

    The deadbeat relative is Murphy, the one who wrecked your washer when he washed his car’s carpet in it. He put some kids shoes in it and from there into the dryer to hide what he had done… He also needed to use your car, which he forgot to put the parking brake on, and it rolled down the hill into that nice new lawyer’s office building. They are adding up the losses now… He was up on the roof the other day checking out where the ducks were landing, and decided to just slide down to the deck, and damaged your roof, the deck chairs he landed on, and the gutter he used to slow himself down with.

    What you don’t know is that Murphy has a grow op going on in your basement, and has bypassed your electrics. He is a charmer though…

    Man, I am glad I have no debts! Although Murphy seems to be living at my place too, as I can’t get enough money put into my emergency fund and my retirement fund, and at 52, I need every dime I can put in there!

    That Murphy… What we wouldn’t do to kick his butt out! (grin)

    Reply
  • LifeInsuranceCanada.com November 26, 2013, 7:09 AM

    It would appear that the federal government has kids going to university :).

    Reply
    • bigcajunman November 26, 2013, 7:52 AM

      … and a deadbeat relation living in their basement too!

      Reply

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