DEFICIT Caused by Medicare and Social Security; Not the Wars (Charts)
Posted by FactReal on April 1, 2011
|SOCIAL SECURITY AND MEDICARE BENEFITS ARE KILLING US…NOT DEFENSE SPENDING
58% of the budget goes to entitlements; 20% to defense spending.
Did you know that 58% of the 2010 budget went to entitlements (Social Security, Medicare, Medicaid, Unemployment) while only 20% was spent to defend this nation? (See graph 1) Defense spending is actually less than 5% of GDP; entitlement spending is almost 10% and rapidly increasing. (See graph 2)
Democrats and some Libertarians are incessantly trying to perpetuate the myth that defense spending (i.e., Iraq and Afghanistan wars) is the principal cause for the U.S. deficit. When talking about the budget, their first impulse is to cut the money we spend to defend this nation. But they are disregarding the facts:
EXPENSES VS. REVENUES (Fiscal Year 2010)
In 1965, liberals like Democrat President Lyndon B. Johnson and the New York Times
But according to 2009 calculations, Medicare has an unfunded liability of $89.3 TRILLION — that is, $89,300,000,000,000! “The unfunded liability is the difference between the benefits that have been promised to current and future retirees and what will be collected in dedicated taxes and Medicare premiums.” This means that government would have to set aside $89.3 trillion today to be able to pay future benefits for the three generations of Americans: retirees, workers, and children. This represents today a debt burden of $289,235 for every man, woman and child in the U.S. for Medicare alone. (According to the 2010 Census, the U.S. population consists of 308,745,538 people.)1
Social Security and Medicare are in trouble precisely because every dollar of payroll taxes is spent: “Nothing is saved, and nothing is invested. The payroll taxes contributed by today’s workers pay the benefits of today’s retirees.” And what about the Social Security and Medicare Trust Funds? They are “are little more than IOUs the government writes to itself.”
Conclusion: “The Social Security and Medicare deficits are on a course to engulf the entire federal budget. If our policymakers wait to address these growing debts until they are out of control, the solutions will be drastic and painful.”
But then we have the left-wing media claiming that we are not broke. Why? Because they want to leave us with only one option: Tax increases.
This entry was posted on April 1, 2011 at 7:03 pm and is filed under Government Waste, Left, War & National Security. Tagged: budget, Deficit, Democrats, Economy, Medica, Medicaid, News, Politics, Republicans, Social Security, War. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.