Entitlement Spending Leading to Bankruptcy

Entitlement Spending Leading to Bankruptcy

Obama's Path to Bankruptcy: This is the Obama administration's projection of the federal debt. It assumes "tax hikes for the rich", predicted savings from "Obamacare," and the end of the war in Afghanistan. Yet, the Treasury Department's Citizen's Guide to the 2011 Financial Report of the U.S. Government states (p. xii) states, "The continuous rise of the debt-to-GDP ratio illustrates that current policy is unsustainable" (emphasis added).

Evolution of the Nanny State: In 1960 defense was 55 percent of federal outlays and entitlements were 26 percent . By 2011 defense was 20 percent of outlays and entitlements, including education, were 64 percent.

The President's FY2013 budget projected $3.8 trillion in outlays and $2.9 trillion in revenues, leaving nearly a $1 trillion deficit. To eliminate the deficit without eliminating defense requires significant cuts to entitlements.

As a condition to raising the debt limit last year, Tea Party congressmen required cutting the annual federal budget (about $4 trillion) by $100 billion. This is only a three percent cut. However, the resulting agreement, called the Budget Control Act of 2011, or "sequestration", imposes a disproportionate share of cuts on defense while sparing entitlements.