Monday, October 22, 2012

It's the Death Spiral Math, Stupid

Since the president took office:

* Medicaid is up from 46.9 million to 56 million people.

* Disability beneficiaries are up from 7.5 million to 8.8 million.

* The food stamp program has grown from 32 million Americans to 47
million.

Add to that 80 million beneficiaries 40 million Americans age 65 or older on Social Security and Medicare (9 million of the 49 million on Medicare, including some under age 65, also receive means-tested benefits).

That 120 million does not include the numerous smaller entitlement programs.

Put them all together, and a number approaching half of the country participates in an entitlement program.

Now add in the 16 million new Medicaid beneficiaries, thanks to ObamaCare, plus an estimated 12 million people who enter the health insurance exchanges by 2014, where most will receive federal subsidies.

The budget implications of these programs are huge. For fiscal 2012, America spent $2.2 trillion of its $3.7 trillion budget on entitlement programs - $400 billion less than the $2.6 trillion in gross annual
revenues.

Oh, and interest on the federal debt was $220 billion.

Read More At IBD:
http://news.investors.com/ibd-editorials-perspective/101512-629360-entit
lement-cliff-threatens-americas-fiscal-health.htm#ixzz29UIDZgS2


Thus, the cost of entitlement programs plus interest on the debt are nearly equal to total federal revenues today.

Virtually everything else the government does is with borrowed, or printed, money.

Entitlement spending is also growing much faster than the economy.

Since 1980, Social Security and the various income security programs have grown at an average annual rate of 6%, while Medicare and Medicaid have both grown at more than 9% annually, which includes population growth.

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