Wednesday, December 28, 2011

How Much Is a Gzillion Anyway?

I wish I knew to whom to attribute this bit of budget simplification genius below, but I do not.

Those who study such things have concluded that most of us possess an innate understanding of quantities up to four or five.  Beyond these quantities, numbers represent relative abstractions.  We don't truly grasp the number 87; we understand from experience that it is more than 32 and less than 104.  We understand from experience that 87 would be an absurdly small quantity of blades of grass in the yard, but an uncomfortably large number of snakes in the shoe closet.

(For a quick test of the brain's ability to grasp quantities versus relative numbers, see the lecture materials found here and be sure to click the hyperlink "at this point" under the section on the left titled "Grasping Quantities"  The test on the right side of the screen does a terrific job of making this point...much better than I am able to.)

Having established that we do not understand absolute values of numbers above five but understand merely relative quantities in context of things being counted and other numbers, how do we deal with quantities for which we have no useful bounds or context for understanding?

I believe most of us encounter this limitation if we are still paying attention and trying to understand just how terrible the debt crisis is for the US government.  I cannot conceive of $15 Trillion so I don't really understand how much of a problem it is.

My lack of understanding makes me grateful to whoever developed this simplification which I am much better able to comprehend.  I think you may find this helpful as well.
The budget explained in simple English.
I love it when complex things are simplified so that we can all understand.
- United States Tax Revenue:  $2,170,000,000,000
- Federal budget:                    $3,820,000,000,000
- New debt:                            $1,650,000,000,000
- National debt:                    $14,271,000,000,000
- Recent budget cut:                     $38,000,000,000 
Now, remove 8 zeros and pretend it is a household budget.
- Annual family income:                   $21,700
- Money the family spent:                 $38,200
- New debt on the credit card:          $16,500
- Balance on the credit card             $142,710
- Recent budget cuts about which some politicians are proud:  $385
Stop the insanity now.  Vote them out and demand a balanced budget. 

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