FROM: Lisa Sorani, Manager of HR Employee Services LS -
FROM: Lisa Sorani, Manager of HR Employee Services LS -
FROM: Lisa Sorani, Manager of HR Employee Services LS -
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POSSIBLE OUTCOMES: ALTERNATIVE SCENARIO 2<br />
r<br />
• Government fiscal realities and Government debt<br />
o<br />
o<br />
o<br />
o<br />
o<br />
The difference between Government expenditures (Spending) and Government revenue (Taxes) is the<br />
federal budget deficit<br />
The accumulation <strong>of</strong> deficits results in Government debt<br />
For perspective, the budget deficit in 2012 is equivalent to $9,398 per U.S. household<br />
Government debt has grown at a rate <strong>of</strong> 8.6% a year for the past 10 years<br />
For perspective, the Government debt amounts to approximately $150,000 per tax payer<br />
Deficit<br />
Total Debt<br />
1,600,000<br />
18,000,000<br />
1,400,000<br />
16,000,000<br />
1,200,000<br />
000<br />
1,000,000<br />
800,000<br />
600,000<br />
400,000<br />
200,000<br />
0<br />
14,000,000<br />
12,000,000<br />
10,000,000<br />
8,000,000<br />
6,000,000<br />
4,000,000<br />
-200,000<br />
2,000,000<br />
-400,000<br />
0<br />
1 992<br />
1<br />
994<br />
1<br />
996<br />
1<br />
998<br />
2000<br />
2002<br />
2004<br />
2006<br />
2008<br />
2010<br />
2012<br />
1 992<br />
1<br />
994<br />
1<br />
996<br />
1<br />
998<br />
2000<br />
2002<br />
2004<br />
2006<br />
2008<br />
2010<br />
2012<br />
Source: PCA, TreasuryDirect.gov<br />
Pension Consulting Alliance, Inc. ││ EBMUD Fixed Income Discussion │ 26
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