Saturday, October 05, 2013

What a 'Shutdown' Means: $63B Spent, $26B Taxed; $1.6B Borrowed; $1B Paid in Salaries--in Just 2 Days

  
(CNSNews.com) - In general terms, politicians and the press may be referring to what has been happening in Washington, D.C., over the past few days as a government "shutdown" or a "partial government shutdown," but the actual accounting sheets of the U.S. Treasury show that massive amounts of taxed and borrowed money were flowing in and out of the government during the first two days of fiscal 2014.

According to the Daily Treasury Statement for Oct. 2, which was released yesterday at 4:00 p.m., the Treasury spent a total of $63.262 billion in the first two days of fiscal 2014. At the same time, it took in $25.681 billion in tax revenue.

The Treasury also sold $1.648 billion in new Treasury securities--which is government debt.


Among the things, the federal government spent money on during the "partial government shutdown" was $1.129 billion in salaries for federal employees.

To put things in perspective, in the first two days of fiscal 2013 (Oct. 1-Oct. 2, 2012), when there was not a "shutdown," the federal government spent $124.409 billion, collected $29.057 billion in taxes, paid out $2.542 billion in federal salaries---and sold $100.91 billion in new Treasury securities (or government debt).

When the shutdown is over, the federal government will be able to get back to business as usual--and, depending on the outcome of the conflict over Obamacare between the House Republicans and President Obama and Senate Democrats--the government may or may not be able to add to its daily activities all those things that it will take to implement and pay for Obamacare.

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Terence P. Jeffrey

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