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Government Budget Crash Course

Very few people (including members of Congress) actually grasp the numbers involved in the Federal Budget. Here is a crash course to provide some perspective:
The total net "economy" of the United States is about $9.25 trillion. That represents the total production, sales, purchase, and consumption in the United States in 2003, according to estimates provided by the CIA.

The net economy of the United States produced about $185 billion dollars worth of agricultural products (including exports).

The net economy of the United States produced about $1.6 trillion in manufactured goods (excluding anything agricultural).

And the Federal Government's budget of the United States , in FY 1999, was approximately $1.7 trillion. This budget was balanced, because in addition to spending $1.7 trillion in 1999, the Federal Government raised $1.8 trillion in taxes and fees.

That's right: the United States spends more on running the Federal Government than it actually manufacturers in any given year, and almost ten times what it produces from its farms and agribusiness industries. And the Federal Government collects more in taxes than the value of all the products manufactured and all the food grown in any given year.

And to make matters worse, note that none of these expenditures include the state budgets of the 50 United States (although it does include the spending of the District of Columbia, all of which is provided by the Federal Government directly since the District is the financial and legal ward of the Congress).

What's the rest of the U.S. economy up to? About 80% of the U.S. economy is in services: everything from accountants, to doctors, to lawyers, to grilling Big Macs. And government. When your entire economy is based upon providing services as opposed to creating and manufacturing products, eventually your economy and job markets will crash.

Government is the single biggest industry in the United States , both the Federal and the combined state governments. The business of the United States isn't business -- it's legislation. And quite frankly, they do a terrible job at it.

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