Friday, October 8, 2010

What is Bank of America worth to you?

It is easy to gloss over on the huge numbers on the news about how much money the Federal government is giving whoever needs their ass saved this time. I wanted to reduce it to something more personal for us all. What does federal government spending mean to me?

So I started poking around for data and here is what I found:

These numbers should be correct given:
138,000,000 Federal Taxpayers
43% Of the Federal revenue comes from Federal income tax

(The amount of money * 43%) / number of federal tax payers
(1,000,000,000 * 0.43) / 138,000,000 = 3.11

Therefore:
When the government says we are going to spend 1 billion dollars, that is on average $3.11 dollars of your tax money.
Of course as different taxpayers pay different percentiles, this number could be higher or lower for you specifically, but on average its $3.11.

So, on average, this is how much YOU paid to keep these companies afloat:

Troubled Asset Relief Program (TARP) (2008) $ 2181.16 (US dollars)
Fannie Mae / Freddie Mac (2008) $ 1246.38 (US dollars)
Citigroup (2008) $ 872.46 (US dollars)
American International Group (A.I.G.) (2008) $ 560.87 (US dollars)
Bank of America (2009) $ 443.08 (US dollars)
Bear Stearns (2008) $ 93.48 (US dollars)
Auto Industry (2008) $ 77.90 (US dollars)

Here is the major sections of the budget broken down to your level:
Defense $2436.67
Interest on loans $582.68
Discretionary spending $1361.6
Other Mandatory (I don't really know what that means) $1891.38
Medicare / Medicaid $2106.38


So far, the total outflow of federal bailouts is at $551 Billion, thats $ 1716.88 from you. Of that money $246 Billion has been payed back to us, that $766.52 back to us.


I do believe if Bank of America or AIG called me up and said "Can we borrow about $500 dollars? Were are in a pinch!" I believe my response would be a few expletives followed by slamming the phone down, how about you?

PS:
I believe I have found accurate information, and done all my math correctly, if you see something wrong please point it out.

Data Sources:
Federal Income Tax as percent of total Fed revenue:
http://en.wikipedia.org/wiki/United_States_federal_budget#Major_receipt_categories
138,000,000 Federal Taxpayers
http://en.wikipedia.org/wiki/Taxation_in_the_United_States#Tax_distribution
Individual bailout sums:
http://www.propublica.org/special/government-bailouts
Bailout totals:
http://www.propublica.org/ion/bailout