Skip to comments.Fiscal Cliff? The Real Threat Is The 'Entitlement Cliff'
Posted on 10/16/2012 5:24:43 AM PDT by SeekAndFind
Putting Paul Ryan on the GOP ticket ensured that the presidential campaign would focus some attention on Medicare's fiscal challenges.
But that debate barely touches the scope or depth of the entitlement challenges facing the U.S. economy. The fiscal cliff coming at the end of the year pales vs. the entitlement cliff forced on us by a multitude of entitlement programs that we can't afford.
Most people think of entitlement programs as Social Security and Medicare for seniors, Medicaid and perhaps some other means-tested welfare programs. But there are many more: veteran benefits, unemployment, the children's health insurance program, disability income, the GI bill, Head Start.
The U.S. Census Bureau says 108 million Americans live in households where at least one person participates in a means-tested program. We estimate that 80 million are the primary recipients, though millions more share those benefits. That number has been growing rapidly under President Obama.
Since the president took office:
Medicaid is up from 46.9 million to 56 million people.
Disability beneficiaries are up from 7.5 million to 8.8 million.
The food stamp program has grown from 32 million Americans to 47 million.
Add to that 80 million beneficiaries 40 million Americans age 65 or older on Social Security and Medicare (9 million of the 49 million on Medicare, including some under age 65, also receive means-tested benefits).
That 120 million does not include the numerous smaller entitlement programs.
(Excerpt) Read more at news.investors.com ...
As Tip ‘o Neill used to say ...
“A billion here, a billion there, and pretty soon you’re talking about real money.”
Put them all together, and a number approaching half of the country participates in an entitlement program.
Now add in the 16 million new Medicaid beneficiaries, thanks to ObamaCare, plus an estimated 12 million people who enter the health insurance exchanges by 2014, where most will receive federal subsidies.
The budget implications of these programs are huge. For fiscal 2012, America spent $2.2 trillion of its $3.7 trillion budget on entitlement programs $400 billion less than the $2.6 trillion in gross annual revenues.
Oh, and interest on the federal debt was $220 billion.
60% of the budget goes to entitlements, but I’m sure that number has been climbing since Obama took office. We’re probably at 65 or 70 percent now.
This editorial is right. The MSM uses phrases like “fiscal cliff” and says we need to do something about the “deficit.” Those words hide the problem, which is SPENDING. In particular, domestic social spending, including entitlements. We need to cut spending, period. Look at any graph or chart of spending over the past 5 years, 10 years, 20 years, 40 years. It has gone up way faster than inflation and population growth. It is the problem, not the “deficit” or some “fiscal cliff.” I don’t even know what “fiscal cliff” means. Its silly. Call the issue what it is — a huge increase in spending that is not supported by tax revenue.
A billion here, a billion there, and pretty soon youre talking about real money. Everett Dirksen
The other day, I got in line behind one of Holder’s women at the local Turkey Hill convenience store. She was buying state lottery tickets (PA). It took five minutes for her to buy all of them she wanted. She then paid with her welfare entitlement card. In short, I paid for her lottery tickets. And I felt like screaming.
Sooner or later, we are going to have to defund the Welfare Vulture Culture. If it takes a civil war, so be it.
California is now floating tax increases (Prop 30) just to keep up with teacher pension funding. It ain’t about the kids!
The real threat is socialists.
“Socialism Is Legal Plunder” - The Law - Frederic Bastiat 1801-1850
DEFUND socialist collectives, foreign and domestic.
DISMANTLE domestic socialist programs.
DEPOPULATE socialists from the body politic.
DEFUNDING PBS/Big Bird was a good start. /sarcasm
Do not listen to this sophistry by vested interests. The acceptance of these arguments will build legal plunder into a whole system. In fact, this has already occurred. The present-day delusion is an attempt to enrich everyone at the expense of everyone else; to make plunder universal under the pretense of organizing it. - Bastiat 1801-1850
Above all, if you wish to be strong, begin by rooting out every particle of socialism that may have crept into your legislation. This will be no light task. - Bastiat 1801-1850
BIG GOVERNMENT IS CRONY SOCIALISM
Progressive plunderers and tyrannical totalitarians have placed many mandates on our existence, our time of life, our labor. We, our children and grandchildren, have become debt slaves to those organizations of sophisticated socialists.
live - free - republic
That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.
It’s about the handouts at all levels of g’mint and citizenry.
Remember how it was about the oil.
My favorite part is how they turn around and demonize the “rich” who have already. in to many instances, given them more than they deserve.
Commies B commies, no matter their temporal location.
They will always demonize “the rich”, and as things get worse, whom they are pointing at goes down the scale.
To most sheeperals, “the rich” simply are those that are perceived as having more than they do. And it’s not about wanting or getting what “the rich” have, it’s about using the force of gov’t to keep “the rich” from having it at all.
It's math, not politics. We are nearing the end of a long exponential function which will inescapably explode upwards. Any president making the required deep cuts will be savagely attacked and run out of office by the ignorant masses. It's a lose-lose situation for all the pols who must make the decision... and every month that goes by in avoidance, makes the ultimate solution increasingly more painful.
Blessent mon coeur dune langueur monotone.
The entitlements will be cut.
It’s just a matter of whether they are cut in a managed way, or in a catastropic failure.
There are way to many people who are second hand communist. They’re not reading Marx or Alinsky.
They are useful idiots,pawns, and even some are sellouts.
Most of them don’t care they just know someone wants to give them “free” stuff and someone else wants them to make a effort at being self reliant.
Glenn Harlan Reynolds: The Higher Education Bubble Is Going To Burst
Someone posted last week -
the adult that says “no more free candy” to a room full of children is NOT going to be popular.
It maybe worse.
IMHO we do not know if GAAP procedures are being used in Disney on the Potomac, what games did Reid-Pelosi-Obama pull w/ the numbers and agencies...
My latest prediction? My friends think I am nuts on this one..
I think things are so bad, that when Romney-Ryan do a full up GAAP accounting of the budget that they ask Wall St to close for a week to explain it to the American people like GWB closed the Markets post 9/11.
A series of Come to Jesus State of the Union Speeches with both Houses in Session to explain it all...
A penny for your thoughts...
Romney is going to need Cost-Cutters / Turn-around experts.
The Ultimate one IMHO is Alan Mulally.
I don't want to ask him to leave Ford, that is his decision, but man, talk about the Go-To guy to add to Team Romney to help get our Fiscal House in Order...
Just to P*ss off the left and the likes of Schumer make him a Czar so he doesn't have to go through hearings for Confirmation ! LOL !!
THIS is the single most critical issue facing our country, our government and each one of us. We are way beyond "managed" cuts, or tax increases to solve it. As Chuck Yeager would say, we're going to "auger in", and the impact will affect every living soul on the planet except hunter-gatherers. Frankly, I'm not sure why anyone in his right mind would want to be a politician at this point, because all they have to look forward to is the wrath of the electorate.
We've been lied to. The lying must end. But how do you tell the "Obama-phone Kids"? Do they even have the education to understand the coming "cliff"? It will be those angry folks who will make politics, or walking in the park, or washing your car a life-threatening activity.
May God help us all.
These kinds of articles may be of interest to those who are now only getting up to speed. But for those of us who have been on top of this since the beginning know how it's gonna end - badly.
I used to fall in the deflation camp - I actually thought (silly me) that governments would follow the rule-of-law with regard to defaults and proceed via 'normal' bankruptcy channels.
Now I know better - they've chosen effective default via currency destruction. After all, this allows them to retain their bonuses & positions of power.
At the end of the day, it functionally doesn't matter if (a) they tell the 47% there is no more money; or (b) they lock the CPI and pay the 47% pennies on hundreds of dollars.
Option B keeps the structure in place - for awhile at least, which is all they're hoping for at this point.
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