I was feeling a bit optimistic earlier, but after viewing this entitlement chart, well, I’m a bit less optimistic. If you’re standing up, sit down before viewing this chart, which depicts the United States revenue vs. expenses. The scariest part is that the expense chart continues to expand while the revenue chart stays the same. There is simply no way to grow our way out of this mess.
Click for larger image
See Mary Meeker’s USA, Inc. for more charts like this one. Meeker imagined the US as a company, and put together a fiscal report for USA, Inc. In summary, this corporation is in big trouble. There is no way of getting around entitlement reform, and the politicians who tell you otherwise are liars. It’s really that simple.
Like Margaret Thatcher noted, socialism is great until you run out of other people’s money. The above chart puts it into perspective.
Via memeorandum
Tags: budget, chart, entitlements, expenses, scary, United States
hehehe, optimistic?
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While I doubt the political will to resolve the crisis, this isn’t really that tough a problem to solve on paper. Social Security and Medicare eligibility can be raised to 70 which will resolve insolvency on both fronts and make social security solidly profitable. Additionally, end the payroll exemptions on incomes above $106,000. Spending on Defense has risen by over $400,000,000,000 a year over that in George H. W. Bush’s term despite the fact that we won the Cold War and there are currently no foreign powers that possess more than a sliver of American might. We want to have the strongest military in the world and we need to have a particularly strong navy and air force but we are just throwing away our money at present levels. The only realistic existential threat to American power is our deficit spending. Bring the numbers back to those indexed by inflation exempting the health care/retirement plans that we owe our country’s servicemen with an acknowledgement that we get more bang for our buck from the navy and air force. End farming, oil, and banking subsidies. End earmarks. Reduce mortgage deductions. Enact medical malpractice reform. Push through a 10% across the board non-military discretionary on spending that isn’t already being reduced or eliminated. Bring estate and investment taxes back to Clinton era levels. Rework the tax code to simplify while ending loopholes and ending the second Bush era tax cuts and freeze non-military discretionary budgets to inflation until we get the US debt that isn’t held by the federal reserve (they currently hold about ($5,500,000,000,000 of our national debt) to under 20% GDP. Establish a bank tax on the too big to fail financial institutions that exacerbated this mess that will draw us a profit as well as guard us against future capital flights like in 2008. Additionally, you could do things like impose carbon taxes or liberalize non-violent drug rules so that you didn’t spend so much on incarcerations and got the sales plus income tax jumps but the above would solve most of the problem allowing us to grow out of the rest and thus allow for us build back our public purse.
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i almost took you as knowing what you are spewing here…almost until i saw this line: “that in George H. W. Bush’s term despite the fact that we won the Cold War and there are currently no foreign powers that possess more than a sliver of American might. Ever heard of Communist Red China with 1.5 billion people and the soon to be world’s largest economy? Welfare has risen by a whopping 56% in 2 short years of Obama. Funny how ya didnt mention that in your fiscal budgetary report here.
Also no offense as liberals say but you know where you can stuff your fake carbon tax scheme dont you?My electric bill ALREADY went up $60.00 a month due to these ignorant utopian lies and ignorant liberal mathematically challenged mongrels elected to Congress without the common sense of a 3 year old. You sound about as ignorant as Nancy Pelosi in your rant here. SAD.
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You forgot that we should STOP funding the U.N.
We should also eliminate Foreign Aid.
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My God where to begin. Just look at what you have suggested. TAXES!!!! Not considering the fact that you are a liberal you must be insane to think that Congress would take any NEW revenue and actually APPLY it to the deficit. Have they ever done anything like that? The number of new stimulus and “Investments” in our country would double over night. Why is it that progs never use the word eliminate or cut? Hell, I’ll settle for reduce. But no, you want to take an increasing amount of discretionary money away from the public so DC can spend it wisely. Please don’t run for office because you are what the Dems are looking for.
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I have said and will continue to say that the deficit commission came up with some pretty sound underpinnings to get America back on the track of fiscal integrity.
There is no way your going to cut back Medicare. Medicaid. Social Security benefits…..Those are entitlements that people have been paying into for 70 plus years now. They are here to stay.
The giant ponzi scheme of the US government NEEDS TO BE FUNDED. It is why the Democrats continually scream for new taxes. More taxes. More revenue.
Because they all know what the rest of us have been trying to wish away……….
The US Government is a PONZI SCHEME.
People who are paying into the system today are going to be paid back with money paid into the system in 10-20-30-40 years from now.
CUTS….along with tax increases are needed to unbury us from the GOVERNMENT PONZI SCHEME inflicted upon us by FDR and the Democrats ENABLED by the Republicans and their “DEFICITS DONT MATTER” Mantra.
When you make spending PAINFUL for POLITICIANS is the only day you will ever end this giant PONZI SCHEME of a GOVERMENT SCAMMING OPERATION.
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Until we vote in politicians that have the guts to use a chainsaw instead of nail clippers to the federal budget AND reduce revenue streams to the government our debt will run us to ruin. Communicate to your elected officials. How long does it take to email or tweet? We spend more time complaining on blogs or social networks. Our support and monetary contributions to those willing to do so give them the “guts”.
Very affordable energy to the masses is a key for economic growth as well and when prices begin to reduce disposable dollars, individuals as well as families have their spectrum of spending choices reduced to essentials.
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@ Michigan
Reducing revenue streams to the government is not going to solve the debt problem. It is only going to increase the debt unless we increase revenue streams first and then ratchet down the revenue streams after we have retired the debt. It will lead to less government which appears to be what you are concerned with, and that is fine, but that isn’t going to address the debt problem.
Also, I’m at a loss as to where this very affordable energy is going to come from unless it is being subsidized.
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I appreciate your comment. Much of the debt has not yet been fulfilled, so for a time, spending cuts will be very effective. Open oil harvesting by fast tracking permitting to do so. More of any commodity reduces price, the end result being the elimination of OPEC that now sets production and price.
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[...] touched on this not so long ago, but I don’t know if I saw this scary chart from USA, Inc. The rate of US entitlement [...]
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