THAT’S A TRILLION, WITH 12 ZEROS
It's easy to become numb to the federal government’s budgetary numbers in the millions, billions and trillions. They may sound the same, but they look very different.
I understand that a million dollars is a lot of money, and while I have never had that much money, it seems oddly attainable. With the median home price in Austin being $355, 000 a million dollars is just 3 nice houses. If not attainable, at least understandable.
A billion a is a whole other concept. It's a thousand million. One thousand stacks of one million dollars. And if you are wondering how tall a stack of a million one dollar bills is, it's nearly 7 miles tall. Now that's not end to end. That is stacked, one on top of the another. Envision a 7-mile-tall stack of money, now envision 999 more.
A trillion is one million stacks of one million dollars. That is 7 miles of stacks that are 7 miles high. Another way to see it, is when placing dollar bills end to end, they could travel to the moon and back 200 times!
The Trump tax redistribution, also known as the 2018 Federal Tax Cuts, has a price tag of 1.5 trillion dollars. That is the equal to a $5,000 tax bill for every man, woman and child in America. And keep in mind, there are 325 million of us. So, for my family of 5 that’s a $25,000 price tag.
This debit has been put on our credit card with interest being added daily. The plan being, that if corporations have extra money on hand they will hire more people and grow their businesses even further.
Certainly, there are times when an economic stimulus is just the jolt the economy needs. But why now? The economy was good without it. Interest rates were low. Unemployment was low.
In times when the economy is doing well we should be balancing the budget and paying down the debt. But somehow our President walked into a room, planning to reform and simplify the entire tax system, and walked out giving corporations a huge tax cut.
What will we do the next time the economy runs into trouble? Will we take on even more debt? Yes, of course we will. We will do whatever it takes to keep our economic engine going, but it’s a high price to pay. Lucky for us, I bet China will be happy to bail us out.