The above entitlement programs are on an unsustainable path that the Gen X and Millennial Generations will have to address. Continue reading →
Economic analysis of our government debt and deficits are horrific, but under President Trump, first year growth of debt is way down compared to his predecessor. Continue reading →
The Navy will never have an aircraft fleet 100% operational, but it’s current status should be of concern. Continue reading →
The corporate tax only empowers special interests, makes U.S. business economically lethargic and stymies future economic growth. Continue reading →
I took some time off for vacation. During my absence, I saw the national media dug through my blog site on posts related to Indiana’s financial state concerning the budget as Governor Pence joined Donald Trump’s Presidential ticket. Continue reading →
This is unsustainable but most do not pay attention to the financial train wreck heading our way. Continue reading →
President Obama stated during his Tuesday night State of the Union Address to the nation, the good times are back for America. This is his last SOTU address to the nation as his term is up later this year. During his oration of his list of achievements Continue reading →
The numbers are staggering in how fast medicaid is growing and spending. This isn’t a sexy topic to talk about but that is the psychosis of America’s political landscape today. Here is some recent news pertaining to this federal government social program.
Via Wall Street Journal –
Medicaid enrollment has surged 19% nationally since ObamaCare’s expansion—50% in New Mexico, 65% in Oregon, 81% in Kentucky. The Congressional Budget Office reports that Medicaid spending rose 21% in the first five months of fiscal year 2015, “largely because of” ObamaCare.
Another source, The Heritage Foundation added more data to the topic of medicaid growth –
This jump does not even include the Obamacare insurance exchange subsidies that are now in place—a $7 billion increase so far this year. Medicaid and the Obamacare subsidies account for $28 billion of the $88 billion in mandatory spending increases this year. The extent to which growth of Obamacare and other entitlements is responsible for this increase is even more pronounced than at first glance. Leaving GSEs out of the equation, increases in Medicaid and Obamacare subsidies accounted for half of the mandatory spending increase so far this year. Meanwhile, defense spending is down nearly 5 percent.
One more item from Heritage is the overall growth of entitlement spending.
Chart 12 shows the growth of more than 80 welfare programs since 2007—including food stamps, unemployment insurance, housing aid, Medicaid, and disability payments. Some of these increases were results of the recession, while others were due to Obama policies that expanded eligibility and cancelled work requirements. Since 2008, spending has soared 37.2 percent in these programs. Since 2007, spending has mushroomed nearly 55 percent
Economics 21 had an interesting graph in their article titled “How to Fix the $960 Billion Budget Deficit”.
Here is how federal government spending will be broken up the next ten years.
Almost two-thirds of additional spending will be driven by entitlements, primarily Social Security, Medicaid, and Medicare. America’s aging population is the primary contributor to the growth of Social Security and Medicare, while the Affordable Care Act substantially expanded the scope of Medicaid.
Adding interest payments to the budget brings the total increase in the debt from mandatory spending to 85 percent. Spending is projected to grow by $2.3 trillion annually by 2024.
With President Obama having a disastrous 4 years of losing Democrats in the House and Senate, he will now have to face his opponents in the federal budget ring. The media and his supporters have given him a pass on not getting a budget implemented in the last six years. This year will be different with the House/Senate being revamped with budget conscious members.
Rebecca Shabad at TheHill.com has an excellent timeline of what the President faces in the next coming months regarding the 2016 budget. I suggest taking a look at the article for the detailed write up after each date listed.
February 2: Obama’s budget deadline
February 27: DHS funding runs out
March 15: Debt limit suspension expires
April 1: GOP budget resolution?
September 30: Shutdown deadline
October 1: Fiscal 2016 begins