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Here's why, by the numbers.
Total federal revenue for FY2011 will be about $2.2 trillion.
Here are the three biggest federal expenditures YTD:
Medicare/Medicaid - $815.1 billion
Defense including wars - $698.5 billion
Social Security - $711.8 billion
Medicare, Defense, and Social Security expenditures YTD comes to $ 2.225 trillion. These three areas are consuming ALL the revenue the federal government takes in. There is no money left for anything else. The other $1.6 trillion the federal government will spend this year is all borrowed. This is known as the deficit. The federal government is borrowing 40 cents out of every dollar it spends.
The federal government has spent beyond it's means for a long, long time, which is why we have a $14.4 trillion federal debt, but the government isn't even coming close to paying for itself these days, and President Obama isn't making any realistic efforts to address the problem. His 10-year budget proposal added another $9-13 trillion to the debt, and his budget assumed economic recovery, the implementation of ObamaCare, an end to the Iraq and Afghanistan wars, and a reversal of the Bush tax cuts for the top 2%. Obama's budget still leaves us on the road to nowhere. Incredibly, Obama tried to peddle his 10-year budget plan as one that reduces the deficit, as if it was fiscally responsible. It is anything but that. Obama is the Nowhere Man.
As bad as things are now, they are about to get much worse. We have future unfunded entitlement liabilities in excess of $114 trillion. $79.1 trillion of that is Medicare. This means we have made enormous future entitlement commitments that we have not funded. And as everyone knows, health care costs are going up much faster than the economy is growing. Those unfunded entitlement liabilities are going to get a lot larger.
The Government Accounting Office (GAO) put out this chart in 2008 comparing entitlement growth to GDP growth. This shows how entitlement spending will rise:
Entitlement spending is growing three times faster than GDP, and the GAO's projection was made BEFORE ObamaCare was implemented. ObamaCare created massive new entitlements. It adds 20 million new people to Medicaid. Obama, like Bush before him, added to the entitlement problem (Bush's Prescription Drug plan has an unfunded future entitlement liability of $19 trillion. That's in addition to the $79 trillion Medicare/Medicaid liability).
Politicians like to create programs and promise people all kinds of things, but politicians don't like to pay for those programs and promises. Politicians want all the pleasure without any of the pain. It helps them get elected, but what they are ultimately doing is selling this country down the river with their unsustainable schemes.
A Heritage Foundation chart shows, using a 30-year tax to GDP average of 18%, Medicare/Medicaid, ObamaCare, and Social Security will consume ALL federal revenue by 2049. There won't even be room in the federal budget for Defense spending.
In summary, entitlements are doubling and tripling in size beyond economic growth. Historic levels of taxation can no longer support them and the rest of the government. We have massive entitlement commitments we have not funded....and we are ALREADY $14.4 trillion in debt, with a $1.6 trillion deficit this year, and no end to the deficits in sight.
Anyone who doesn't recognize this problem is engaging in willful blindness...which leads me to the Democrats. They are busy ripping apart Republicans who have proposed measures to deal with this coming fiscal crisis, like Rep. Paul Ryan (R-WI), but the Democrats are proposing no solutions of their own that will address the problem. Shame on them. If they don't like Ryan's plan, or any other Republican plan (there are several), then how about the Democrats do the jobs they were elected to do and come up with their own plan(s) ! The Dems think ripping the GOP's ideas will give them an advantage in the 2012 elections, and that's all they care about. They hope nobody will notice they have no solutions of their own. As an example, listen to how Democratic National Committee Chairwoman Debbie Wasserman-Schultz answered a question put to her about how the Democrats will address the problem:
There is the message of Democrats. They got nuthin', other than demonizing Republicans. The citizens of this nation deserve a lot better than that.
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