Man I am so sick of the bogus claim that "Entitlements" are the biggest contributor to our deficits, its just pure manufactured bullshit.
1. SS and medicare aren't entitlements, they are old age insurance programs funded by payroll deductions. Are adjustments necessary to keep them solvent? Sure but to consider them entitlements and govt spending is bogus
In theory this is correct, but in reality, the average SS and Medicare recipient gets roughly 3X the amount they paid in during their life time.
2. Comparing annual outlays for these programs to other types of pure spending like military without considering the annual tax revenues funding these programs is dishonest and just wrong.
But ignoring the fact that the system as it stands is headed to epic failure sooner than anyone wants to admit is dishonest and just wrong as well.
3. Without the payroll tax income from these programs that Congress has unfortunately turned into their own personal line of credit the government would probably run out of cash in a matter of weeks.
But, the government HAS run out of cash. That's what Deficit spending is. We were days away from running out of borrowed cash in December. We are weeks away from running out of Decembers Borrowed cash today unless the debt ceiling is lifted again.
When I see someone claim that those big bad entitlements are our major problem, I immediately dismiss them is dishonest liars or too stupid to listen too.
Entitlement spending IS our LARGEST problem. There are several other LARGE problems as well. Entitlements are clearly not a one stop solution to the problem.
So far, with the 2011 budget we spent 3.3 Trillion dollars and borrowed 1.56 Trillion. If we were to repeal bush's tax cuts and enact the Presidents proposed Millionaires tax, we would have reduced that borrowed amount to, optimistically, 1.46 trillion. Entitlement spending currently takes up almost 57% of our spending. The past few years has been very similar and the next several will be no different. Even with the tax increases, we can pay for the entitlements and the Interest on what we owe before having to borrow more money. That's before a single bullet is purchased for the military, or a single paper clip is purchased for congressional secretaries. Before the actual cost of running the government.
We need to cut back on everything and find new ways to do what we need done for less money. We can forego new carriers, we can cut back new military developments. We can redeploy in more cost effective ways as well.
We also need to cut back on entitlement spending, and find new ways to provide the required services in a more cost effective way.
We even need to look at serious changes the tax code that won't destroy the economy.
Consider this. 2011's Interest payment on the national debt equals what we spent for our military in 1999. The amount we pay on interest alone would fund almost 70% of today's Medicaid plan. We can not afford to keep feeding that debt.