How Big is the Bailout?

By the end of this week, Congress may have backed an unprecedented mortgage industry bailout plan that will cost taxpayers at least $700 billion -- seven-tenths of a trillion dollars -- by the time its all said and spent. How does $700 billion compare with other major federal government expenditures and encumbrances?

• Total spending in the fiscal year 2009 federal budget topped $3.10 trillion. Now, if you had just one trillion dollars, you could spend one million dollars a day for 2,737 years. Oh, and by the way, the total U.S. national debt is now over $9.4 trillion.

• In 2006, the Social Security Administration spent $574 billion to pay monthly benefits to more than 53 million people.

• Combined defense policy-related spending, exclusive of warfighting, is now about $500 billion per year.

• Cost of fighting the Iraq war is now approaching $600 billion.

• The space shuttle program looks like a real bargain at about $159 billion over its lifetime.

But Wait, There's More: Don't put your checkbook away yet. The $700 billion for the mortgage industry bailout represents only the value of the failing mortgages to be assumed by the government. It does not include extra ongoing costs associated with servicing those loans and enhanced oversight of the mortgage industry.

Okay, by any measure, the bailout plan is expensive, but its supporters say say taxpayers should think of the $700 billion as an investment. Ready? Start thinking.

Also See:
How the Bailout Affects the Economy and You (US Economy)