Have you ever wondered where all the money goes that your country spends?
It’s a fairly complicated matter.
So today we hope to make it a little less complicated
while focusing solely on the budget of the USA.
The US government receives money each year,
its revenue, while its outgoings are referred to as the national expenditure.
How that money is spent,
or how it’s earned is a matter of ongoing debate.
And it should be, given that for all intents and purposes, it’s your money being spent.
To simplify how the budget is apportioned,
today we’ll imagine: it’s just a small household allow.
Follow us on the money trail,
in this episode of the infographics show,
if the United States budget was only $100,
how would it be spending it?
Don’t forget to subscribe and click the bell button,
so that you can be part of our notification squad.
First of all, let’s take a look at where the money for the US budget comes from?
The revenue comes mostly from you,
in the taxes you pay.
In 2018, the US federal government will have a total revenue of $3,654 trillion.
This sizable amount we are going to round down to 100 bucks.
You can get an idea of how much the total budget is
if we say that $1 of our 100 is equal to about $36 billion.
Half of the US federal revenue will come from income taxes,
and a further 30% from payroll taxes.
Payroll tax is the money the employer or employee pays for
用以支付社会保障 如老年医保 健康保险以及失业保险
such things as social security medicare, health insurance and unemployment insurance.
10% of the total revenue will come from corporate taxes,
and a further 4% from excise taxes and tariffs.
This is the special hidden tax on certain items.
Sometimes referred to as a sin tax,
because it includes things we should probably consume less of
such as alcohol cigarettes and gasoline.
The rest of the revenue will consist of money earned by the Federal Reserve,
and slightly less than that amount from estate taxes.
And the estate taxes money the government takes
when a person dies and leaves cash property or stock to another person.
This usually makes up 1% or less of the US revenue.
Now that we know where the money comes from.
Let’s see if it’s enough to provide for the very large household of the USA.
The money the US receives from taxes is the globe’s largest revenue,
but the US is a big spender.
The country will outlay more than it receives
making the USA one of many countries with a yearly deficit.
Many other countries have a healthy-looking bank balance
such as oil-rich Qatar or the sensibly spending nation of Norway.
As we will now see,
the USA puts a lot of its cash into areas other countries seem to care much less about.
One of those areas is the military.
As you will know if you’ve watched our military base episode;
and so without further ado,
we’ll now take a look at some hard cash statistics.
There are three types of government spending.
Mandatory spending is the money that goes towards entitlements for the US people,
比如社会保障 健康保障 以及失业补助
safeguard such as social security, health care and unemployment compensation.
This amount makes the biggest dent in our $100 allowance.
Mandatory spending is 62% of the entire budget,
or $62 from our 100 buck budget.
Social Security will cost about $27,
medicare about $15 and medicaid about $11.
Other mandatory programs,
which could include things such as food stamps,
or many other welfare programs
will take up the rest of the mandatory budget.
We should note here that there are fears
that mandatory spending will outpace the money earned
as there will simply be too many people to take care of,
and not enough labor force.
This is what happened in Japan.
A country with a lot of old people,
and many young people choosing not to have children.
Something else to think about is the specter of massive job loss due to technological automation.
As for the $38 we have left,
most of that goes to what’s called discretionary spending.
This is part of the revenue that could change year by year,
depending on what Congress votes for.
The third outlay is the money the US has to pay in interest for its national debt
which has almost reached $550,
if we are still rounding down to our $100 budget.
This interest keeps increasing
and in 2018 it will be about 9% of our $100 total revenue.
This is another $9 from our budget that the US must keep paying
less the default on the debt.
This national debt is by far the biggest in the world.
After mandatory spending and interest debt is paid,
we have about $29 left to keep the USA running smoothly.
Where does the rest of the money go?
According to the White House, in 2018,
about 19 of our $100 will be spent on the American military.
This is by far the biggest chunk of the total discretionary budget.
It’s more or less half of the 38 bucks that government has left before
it has to pay the interest on its debt.
This means from our 29 bucks,
we have just $10 left over for everything else;
and there’s a lot to pay for.
The rest goes to other departments of which there are many.
About $0.5 goes to the Department of Agriculture,
$0.44 goes to the Department of Transportation,
$2 goes to the Department of Education,
$0.26 goes to the Department of Labor,
$1.2 goes to the Department of Homeland Security,
$0.32 goes to the Department of the Interior,
$0.77 goes to the Department of State and other International Programs,
$1.11 goes to the Department of Housing and Urban Development,
$0.21 goes to the Department of Commerce.
$0.76 goes to the Department of Justice,
$0.32 goes to the Department of the Treasury,
$2 goes to the Department of Veterans Affairs,
and $0.81 goes to the Department of Energy.
There will also be smaller amount spent on multiple government agencies
and there’s more still to pay.
Quite a lot of the remaining money from the discretionary budget
goes into the emergency fund in case of war or natural disaster
as well as current military overseas operations.
This involves multiple agencies,departments and organizations,
and amounts to around $2.30.
If you add up the entire budget,
it is more than the entire revenues which is just the way it works out each year in the USA.
To save a few pennies, the Trumpet administration has made a few minor changes
such as taking out about $0.03 of our $100
that was previously allocated to arts and cultural agencies.
At the same time, Trump has also controversially decreased NASA’s budget by about $0.01.
如果你看了我们那期《NASA VS SpaceX》
If you watched our episode NASA VS SpaceX,
you’ll know Trump aspires to send men back to the moon,
or later even Mars.
NASA was budgeted just over $0.5 for 2018.
The budget deficit for 2018 amounts to $440 billion.
This is around 12% of our original 100 buck revenue.
It means that there is around a $12 deficit.
So we’ve spent the grand total of $112.
The question we must now ask ourselves is will the US get out of debt,
or will the debt keep growing?
Well, like many other countries,
the US can just print its own money.
So when in debt, just keep printing, right?
Some people think this is not a good idea,
as it could lead to a financial crisis,
and of course, it might upset the people whose taxes are going towards paying off the debt.
一个简单的解决方案是 削减政府开支 或是提高税收
A simple solution to the debt would seem to be to cut government spending or raise taxes.
but the risk is that this might hamper economic growth.
Another solution is to boost economic growth,
so it grows faster than the debt.
In terms of the $100, how can the US use it in areas
where it will see higher returns?
For example, some analysts believe
the US should spend less on defense and more in public infrastructure.
Where do you think the US should be allocating its money for the best of the American people?
Or what would you do with the budget?
Let us know in the comments.
一定要看我们另一个视频 《机器人VS 人类》
Be sure to check out our other video Robots VS. Humans.
Thanks for watching, and as always, don’t forget to like, share and subscribe.
See you next time.
如果美国的预算只有100美元 - 会怎么花呢？