Monday, April 20, 2009

Spare Change

"That's suit thinking. Something happens when a man puts on a necktie. Cuts off all the oxygen to his brain."
--Fred Melrose (Secret of My Success)

A fair amount of media ink is being spilled today about President Obama's initiative to cut the federal government budget by $100 million. Pretty amusing, given that his previously announced programs to increase government spending will triple the budget deficit to about ~$1.7 trillion this year.

Few media outlets have done the math, but here's one. The cut amounts to .oo6% of this year's budget deficit. If you're skeptical of media reported figures (I wouldn't blame you if you were), then do the math yourself. Just divide $100,000,000 by $1,700,000,000,000.

Real change or spare change?

2 comments:

OSR said...

What comes after a trillion and after that? It's disturbing that I can't tell if I've made an error without using scientific notation. Next we'll have to go to use logarithms, like they do for pH.

fordmw said...

Quadrillions, here we come. It certainly seems like scientific notion will be a must learn concept for finance...