Skip to comments.The One Chart You Need to See...(Entitlement Programs)
Posted on 03/05/2011 6:41:53 AM PST by Son House
RUSH: We're gonna have to put this chart up at RushLimbaugh.com. It's from Business Insider, Henry Blodget.
"Here's The Only Chart You Need To See To Understand Why The US Is Screwed." You've seen the chart, Snerdley? This all from Saturday. "We're still working our way through Kleiner Perkins' partner Mary Meeker's excellent analysis of the financial condition of the United States. We'll be breaking out some key sections in the next few days. In the meantime, here's the one chart you need to see to understand why the US is screwed.
This is the 'income statement' of the United States in 2010. 'Revenue' is on the left. 'Expenses' are on the right. Note a few things... First, 'Revenue' is tiny relative to 'Expenses.'
Second, most of the expense is entitlement programs, not defense, education, or any of the other line items that most budget crusaders normally howl about. Third, as horrifying as these charts are, they don't even show the trends of these two pies: The 'expense' pie is growing like gangbusters, driven by the explosive growth of the entitlement programs that no one in government even has the balls to talk about. 'Revenue' is barely growing at all."
And what is obvious as well when you look at this is that there's no way to solely grow our way out of this. There's gonna have to be major spending cuts in entitlements.
So what I'm gonna do here, folks, I just turned the Dittocam off while I zoom in. I'm not gonna go through the process of having you watch me zoom in. But I'm gonna zoom in on this. All right. If you're watching on the Dittocam, here we go. As you're looking at this, the chart on the right is expenses.
The pie on the right is expenses. The pie on the left is income. Now, look at that pie on the right with the blue, orange, and red slices. Those are the entitlements: Medicare, Medicaid, Social Security. Expenses. The others are defense, education, a bunch of other stuff thrown in there.
The point being made is that the big pie is continuing to grow. These expenses are continuing to grow, grow, grow. The income on the left, pretty soon the comparison's gonna be the size of the earth to the moon, as it keeps going.
And they're right. You see this and it's all you need to see to illustrate the problem that we have and to be able to recognize that growth alone is not gonna equalize these two pies in size. It's going to require spending cuts.
Now, on the big pie, of those three, the blue, the orange, and the red, Social Security's 20%, Medicare is 22%, Medicaid, 22%, unemployment compensation, 16%. Social Security is 20%. Twenty-two percent is Medicare and Medicaid.
Unemployment compensation is -- this is striking -- three-fourths as big as Social Security. The amount of money we are paying people not to work as an entitlement on this chart, looked at as an entitlement, is three-fourths the size of Social Security. (interruption) Just like what? Just like Europe.
Just like Europe. On the income side, individual income tax rates are 41% of all income. Social Security tax, FICA, is 40%. Corporate income tax is 9%. There's 10% other varied sources of income.
So we'll link to that chart, and you'll be able to see it at RushLimbaugh.com.
As Van Jones has said, who is a guy who has written a book about the green collar economy, when you think about the green economy, don't think about Buck Rogers; think about joe six-pack putting on a green hard hat. Think about Rosie the riveter manufacturing solar panels and wind turbines. This is President Obama's plan -- jobs, jobs, jobs.
Too many people on the dole. The cart is getting too heavy to pull.
Purge the “not-disabled” disabled first.
People break their pinky and get SSDI for life. Most of the people getting SSI/SSDI could do SOME sort of sedentary job even if not what they did before, and probably still get as much money as they do on SSDI, assuming the jobs were out there in the first place.
I’m not smacking on the truly fully disabled people, just the ones that might have a moderate issue that means they can’t move around well, but could still handle a sedentary job or something.
Note the (much smaller) pie chart on the left is made up almost exclusively of funds that are taken out of OUR suffering hides! And we’re tapped out on taxes, so there is nothing else they can take from us, try though they will.
Gee ... how did the United States government EVER have enough money to function before the 16th Amendment?
Sorry ... forgot the “/sarc”
Wow...the comments at the link. They drip with stupidity. At least the first few I read before I had to slam my head against the wall.
Government was small and businesses were freer to act. Freedom Works. This mess clearly does not.
These pictures say nothing about the massive entitlements of the illegals in this country and the non-working parasites.
Politicians are afraid to cut those entitlement because they are afraid of riots.
Clearly the target here is social security and medicare. Old folks don’t riot.
Yep, I’ve seen some disable get along better than the ones that claim to be disable.
I’d like to see at least a 20% cut of all spending across the board—entitlement payments included.
That will cause pain—me included—but nothing like the pain that would result from America going into default or (maybe worse) paying off the debt with funny money.
I don't know. Try telling that to Dan Rostinkowski.
This is NOT an accident!
This is Obama’s PLAN!
He want’s to screw the job creators, and limit the resources available to expand.
He wants to INCREASE THE COST OF BUSINESS through:
- Higher energy prices,
- Higher healthcare costs,
- Higher taxes,
- Increased regulatory restrictions!
Using the above tactics to shut down American business and industry results in more people DEPENDENT ON THE GOVERNMENT!
This is the destruction of capitalism and the American way of life!
In 2007 under the full force of the Bush tax cuts, the Federal Government had the highest level of tax receipts in history.
Lower taxes encourages business expansion and more employment, resulting in more people PAYING taxes and FEWER people needing “entitlements”.
THAT is the America I want!
The math is simple. If we pay Social Security, Medicare/Medicaid, Unemployment & Other Entitlements, and Net Interest of the existing debt, [and cut defense and discretionary spending by 98% from existing levels, from $1277B to $20B] we can almost eliminate our annual deficit!
Our choices are: (1) cut entitlements seriously, or (2) pass the problem on to our kids when it’s even worse. Personally, I think we need to start moving the Social Security retirement age out toward 70, at least for those under age 55 (50?), just so the problem doesn’t snowball even more two decades from now, but also so we aren’t changing the rules on those close to retirement. I also think we need to tighten up Medicare/Medicaid eligibility and what is covered under those programs. We simply can’t afford a government that plays Santa Clause. Unemployment Insurance needs to be cut back - we can’t afford to pay people to stay home as they look for the perfect job at their old level of pay. It won’t be popular, but our choice is to do the right thing in each of these areas of leave our children with a crippling debt (or both if we don’t act imediately).
“Wow...the comments at the link. They drip with stupidity. At least the first few I read before I had to slam my head against the wall.”
The comments seem reasonably split between the trust fund delusional believers and realists. The delusional believers insist that SS (and other entitlements) are not part of the budget problem. With this mentality, there is little hope to avoid a dollar meltdown. Even a dollar meltdown will not convince this group about explosive government spending. They will continue to blame the rich and corporations.
“old folks don’t riot”....I know a lot of us “old folks” that are ripe to riot and still in darn good shape to do so...we are fed up with our government and it’s mishandling of our assets but those of us that are receiving social security benefits and medicare...which we were MADE to contribute to...being blamed for the woes of the misguidance from that bunch of fools in D.C. The chart shows that Social Security Income is more than spent on Social Security “outcome”....but those dumb dumbs in Washington have pilfered the money and put it elsewhere.
and, in addition, I totally agree that Social Security needs to be overhauled BUT doesn’t need to involve those already on it. (It’s too late to set up any other retirement for them). All one has to do is look at Medicare and see how socialized medicine is a failure.
I have read so many remarks about how “we old people” do not want to give up our Medicare....well, we were forced to get it and were told it would not cost us and we would be able to get care anywhere...thanks President Johnson where ever you are...now look at it. Medicare doesn’t cover much of anything. Most doctors are not taking it without some type of supplement or a replacement for it like an advantage policy...it doesn’t cover but a drop of the cost of your care...the deductables have to be met and the one for going in the hospital is almost $1200 now. If you can’t afford to pay for a supplement (which is expensive on fixed incomes) you are just up a creek.
My friends who have to pay for their Medicare and are on a minimum wage pay about $100 a month for the Medicare PLUS a supplement which can run anywhere from an additional hundred to two hundred dollars monthly depending on your age. Now add that up and shove it toward President Johnson’s ghost....does that sound like “hardly any cost” to you when your total income may be less than $1000 month.
There are many people out there that have gotten older...payed into both of these programs and are now on the below poverty level and actually starving. I am blasted mad at what was done through these two programs. YES...OVERHAUL THE ENTIRE SYSTEM....IT WAS, IS AND WILL ALWAYS BE A FAILURE!! I can personally testify to that!