The most vocal justification provided for the disappointing Q4 GDP print by the mainstream was an increase in US government "austerity" resulting in a decline in the government contribution to the economic bottom line in the last quarter (or first fiscal quarter of 2013). Ironically, both total spending and total debt issuance in the past quarter increased, which means that far from being austere, the US actually spent more, not less, i.e., the opposite of austerity.
And while it is true that Defense spending declined by a tiny amount in the past quarter compared to the year ago, it was more than offset by a surge in Medicare and Medicaid, as well as Social Security, or, as they are better known,welfare. And, as the CBO yesterday showed, these two components of US spending, which together account for half of all US spending and which couldn't be funded by all US revenues even if the government spent $0.00 for all other programs, which will soar in the coming years as US society ages, as more workers retire, and as more are reliant on Uncle Sam for the payment of every bill. So the next time someone say that the US has a defense spending problem and nothing else, show them this chart.
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4 comments:
Now Social Security is "welfare"? Just goes to show that if you lie enough somebody will believe it. This a$$ doesn't even know that social security is paid for by social security taxes and has nothing to do with govt spending...
for you liberals on this blog; does this make you happy? maybe you don't pay taxes so it doesn't matter to you. if you do pay taxes; i'm sure this doesn't make you happy. get rid of the libs asap.
The title should read: What the US government spent OUR money on last quarter.
Read the fine print....it says "Yeah. So what? Thats what it is. Now sit down and shut the (fill in the blank) up!!" Get rid of the libs? Good start, but ALL of them had a huge hand in this. Get rid of them all. Its a shell game, good-cop vs bad-cop. They take turns to keep the focus off the robbery (current and soon-to-be) going on right before our eyes. Perpetuated by THEM. If you ain't disgusted, you ain't payin' attention.
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