THE LOST E-MAIL
About two months ago I received an e-mail, probably from a friend, that included an attachment which discussed the real meaning of a billion dollars. I have lost track of who sent the e-mail but because I found the attachment so intriguing I did keep it and the following paragraphs amplify some of the data found on the attachment.
By the way I see the name Becky Hickman on the attachment and if she wrote it---well thanks Becky and I hope you have no difficulty with me using the essence of your document.
Also, I must warn the reader that I did not verify any of the arithmetic used in the attachment but simply took the calculations at face value.
A BILLION DOLLARS DEFINED
Our politicians and our government casually and consistently talk about spending a billion dollars for this or a billion dollars for that as if they are discussing popped popcorn. Please Mr. Politician, you are talking about dollar bills, money, legal tender, the green stuff. And if you talk about the expenditure of government funds, you are actually talking about the use of the people’s money.
AIG has been saved with an 80 billion dollar bail out. That was my money---where the hell did it go, and how long did it take to spend it, and who is going to monitor its use, and will any of the senior executives at AIG receive pay raises, and will AIG be back for more in ten years?
What is a billion dollars? It is not easily comprehended.
Consider this:
A billion seconds ago it was 1959.
A billion minutes ago Jesus was alive and the Roman Empire was flourishing. But what about those Roman politicians? Along with the Roman Emperor, they were probably contemplating spending a billion gold coins on something or other---rumor has it that they were considering bailing out the developer who went broke building the Coliseum.
Remember the Roman Empire came un-glued and ultimately fell apart---did it have anything to do with fiscal responsibility?
MORE ON THE BILLION NUMBER
A billion hours ago our ancestors were living in the Stone Age.
A billion days ago no one with two feet walked the earth.
Clearly the number “One Billion” is a big, big number. It is so big that no one can really comprehend its magnitude especially when we hook the word dollars to it. And because it is incomprehensible it is an easy number, rolls off the tongue and so spending a billion dollars has become a “no thing.”
BIG NUMBERS VERSUS SMALL NUMBERS
I recall while working in the Pentagon several years ago I was trying to get approval to spend approximately $50,000 to buy a few automobiles for an Army unit in Japan. These vehicles were needed---but I was turned down on the request. Yet that very same day the Army spent millions and millions of dollars on a computer program with no fiscal remorse---Why? Because everyone understood the magnitude of $50,000, it was quite a bit of money and the expenditure was quickly rejected---no matter the apparent need. But no one could comprehend the magnitude of an expenditure of several million dollars and so it was quickly acted on---because a program that expensive most certainly had to be important and was therefore compelling.
I agree that the city of New Orleans needs further assistance to complete its recovery. And I believe the Louisiana Senator, Mary Landrieu (D) has asked congress for 250 billion dollars to rebuild New Orleans. What does that number really mean and is it realistic?
If you were one of the 484,674 residents of New Orleans you would receive $516, 528.
Or if you owned one of the 188,251 homes in the city, your home would receive a $1, 329,787 face lift.
Do you get the idea that the Senator is a little out of line? She surely doesn’t understand a billion dollars.
GOVERNMENT SPENDING
The government spends too much money--in fact money it does not have. A housewife goes to the super market with $60.00 in cash. She watches what she purchases and when she reaches the cash register her bill totals $52.48 and she can look for some change when she checks out at the cash register. She is fiscally responsible.
The government is not responsible--a government buyer at the super market, using $60.00 of government money, would attempt to buy $83.50 worth of goods. But the supermarket manager would say,
“No!---Put back $23.50 worth of merchandise and we can make a deal.”
The seller would demand fiscal responsibility of the buyer--notice the manager is from the private sector and understands money. However, the government dude has no idea about the value of money because it is not his and this is part of the problem.
About two months ago I received an e-mail, probably from a friend, that included an attachment which discussed the real meaning of a billion dollars. I have lost track of who sent the e-mail but because I found the attachment so intriguing I did keep it and the following paragraphs amplify some of the data found on the attachment.
By the way I see the name Becky Hickman on the attachment and if she wrote it---well thanks Becky and I hope you have no difficulty with me using the essence of your document.
Also, I must warn the reader that I did not verify any of the arithmetic used in the attachment but simply took the calculations at face value.
A BILLION DOLLARS DEFINED
Our politicians and our government casually and consistently talk about spending a billion dollars for this or a billion dollars for that as if they are discussing popped popcorn. Please Mr. Politician, you are talking about dollar bills, money, legal tender, the green stuff. And if you talk about the expenditure of government funds, you are actually talking about the use of the people’s money.
AIG has been saved with an 80 billion dollar bail out. That was my money---where the hell did it go, and how long did it take to spend it, and who is going to monitor its use, and will any of the senior executives at AIG receive pay raises, and will AIG be back for more in ten years?
What is a billion dollars? It is not easily comprehended.
Consider this:
A billion seconds ago it was 1959.
A billion minutes ago Jesus was alive and the Roman Empire was flourishing. But what about those Roman politicians? Along with the Roman Emperor, they were probably contemplating spending a billion gold coins on something or other---rumor has it that they were considering bailing out the developer who went broke building the Coliseum.
Remember the Roman Empire came un-glued and ultimately fell apart---did it have anything to do with fiscal responsibility?
MORE ON THE BILLION NUMBER
A billion hours ago our ancestors were living in the Stone Age.
A billion days ago no one with two feet walked the earth.
Clearly the number “One Billion” is a big, big number. It is so big that no one can really comprehend its magnitude especially when we hook the word dollars to it. And because it is incomprehensible it is an easy number, rolls off the tongue and so spending a billion dollars has become a “no thing.”
BIG NUMBERS VERSUS SMALL NUMBERS
I recall while working in the Pentagon several years ago I was trying to get approval to spend approximately $50,000 to buy a few automobiles for an Army unit in Japan. These vehicles were needed---but I was turned down on the request. Yet that very same day the Army spent millions and millions of dollars on a computer program with no fiscal remorse---Why? Because everyone understood the magnitude of $50,000, it was quite a bit of money and the expenditure was quickly rejected---no matter the apparent need. But no one could comprehend the magnitude of an expenditure of several million dollars and so it was quickly acted on---because a program that expensive most certainly had to be important and was therefore compelling.
I agree that the city of New Orleans needs further assistance to complete its recovery. And I believe the Louisiana Senator, Mary Landrieu (D) has asked congress for 250 billion dollars to rebuild New Orleans. What does that number really mean and is it realistic?
If you were one of the 484,674 residents of New Orleans you would receive $516, 528.
Or if you owned one of the 188,251 homes in the city, your home would receive a $1, 329,787 face lift.
Do you get the idea that the Senator is a little out of line? She surely doesn’t understand a billion dollars.
GOVERNMENT SPENDING
The government spends too much money--in fact money it does not have. A housewife goes to the super market with $60.00 in cash. She watches what she purchases and when she reaches the cash register her bill totals $52.48 and she can look for some change when she checks out at the cash register. She is fiscally responsible.
The government is not responsible--a government buyer at the super market, using $60.00 of government money, would attempt to buy $83.50 worth of goods. But the supermarket manager would say,
“No!---Put back $23.50 worth of merchandise and we can make a deal.”
The seller would demand fiscal responsibility of the buyer--notice the manager is from the private sector and understands money. However, the government dude has no idea about the value of money because it is not his and this is part of the problem.
STOCK MARKET AND THE PUBLIC
The stock market has been in the “tank” for a couple of days as a result of the mortgage industry’s greed and other significant factors. Tens of billions of dollars have been lost and the ripple effect is enormous.
Retirees on fixed incomes with 401Ks that have lost value over night are in a panic about buying gasoline and eggs. In the meantime, the pundits are saying it will all come back to even keel. Tell the guy who just lost his job as a middle manager that everything is OK and the economic fundamentals are strong--he will not believe any of it. People are hurting and in a quandary and this moment is a very troubling time for all of America.
TAXES
In the meantime the government continues to grind on and it will need more money. So how does the government acquire the billions and billions of dollars it spends? Of course we all know the answer---TAXES. We are taxed for everything. Look at the incomplete list below.
We pay:
Federal Income Tax
Federal Unemployment Tax
Fishing License Tax
Food License Permit
Fuel Permit Tax
Gasoline Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges
IRS Penalties
Liquor Tax
Luxury Tax
Marriage License Tax
Medicare Tax
Property Tax
Real Estate Tax
Service Charge Tax
Social Security Tax
Road Usage tax
Sales Tax
Recreational Vehicle Tax
School Tax
State Income Tax
State Unemployment Tax
Telephone Federal Excise tax
Telephone Federal Universal Service Fee Tax
Telephone Federal State and local Surcharge Tax
Telephone Minimum Usage Surcharge Tax
Telephone Recurring and Non Recurring Charges Tax
Telephone State and Local Tax
Telephone Usage Charge Tax
Utility Tax
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax
Not one of these taxes existed 100 years ago, and our nation was the most prosperous in the world. We had no debt, the largest middle class on the planet, Mom stayed home to raise the children (if she chose too) and no one had to dial 1 for English.
The world is changing. IS OUR GOLDEN AGE OVER? Did we squander it away?
