Friday, July 29, 2011

Fiscal La La Land

The name calling and obfuscation surrounding the debt ceiling debate is remarkable even by Washington standards. The time for politics is past. The entitlement mentality in Washington which has spread throughout the country is not sustainable. It is time for us to know the numbers, the breadth and depth of the problem. Consider the following from a recent Wall Street Journal editorial and take a moment to the let the scope of the spending sink in. (Note also that the emphasis is mine.)
"According to the most recent government data, today some 50.5 million Americans are on Medicaid, 46.5 million are on Medicare, 52 million on Social Security, five million on SSI, 7.5 million on unemployment insurance, and 44.6 million on food stamps and other nutrition programs. Some 24 million get the earned-income tax credit, a cash income supplement."

And the next time one of your liberal friends suggests that we cut defense spending to solve the spending problem, consider this:

"By 2010 such payments to individuals were 66% of the federal budget, up from 28% in 1965. We now spend $2.1 trillion a year on these redistribution programs, and the 75 million baby boomers are only starting to retire." (WSJ)

Finally, to understand the reckless pace of spending, to put it in historical perspective read on.
"Spending as a share of GDP in the last three years is higher than at any time since 1946. In three years the debt has increased by more than $4 trillion thanks to stimulus, cash for clunkers, mortgage modification programs, 99 weeks of jobless benefits, record expansions in Medicaid, and more. The forecast is for $8 trillion to $10 trillion more in red ink through 2021."

All of this before ObamaCare costs hit the books.

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