We recently pointed out that the Budget Control Act's (BCA) spending caps have reduced government spending (compared to what the Obama Administration planned prior to their enactment) by nearly $9,000 per household. And since BCA caps were implemented, deficits have shrunk by about $6,083 per household relative to those same projections.
What does that mean for the typical American taxpayer, though? For perspective, here's the debt that the average American household faces (according to the New York Fed's data as of June 30):
|Type of Debt||Total Balance||Debt Per Household|
|Student Loans||$1.19 trillion||$10,293|
|Auto Loans||$1.01 trillion||$8,736|
|Credit Cards||$703 billion||$6,081|
So, that means that the deficit reductions under BCA were the equivalent of:
- 59.1 percent of the average household's student loan debts;
- 69.6 percent of the average household's auto loan debts; and
- 100 percent of the average household's credit card debts.
Government deficits have been reduced significantly since BCA caps were enacted, which means less debt on the average American's plate.