Quote from mjmoon
Can you link some sources that support these statistics?
It's unfortunate, really, that these very simply fiscal facts about what our government is doing isn't common knowledge, but the info is easily accessible and available directly from government-provided data.
Here we go:
2011 projected federal deficit: $1.5 trillion
This is money the government doesn't have, but is spending anyway.
Source: the Congressional Budget Office Link
2011 projected spending: $3.69 trillion
Source: Obama's 2011 Budget Proposal: How It's Spent
Here's the math: $1.5t/$3.69t = 0.4065 = 41%
That's the bit about the government having to borrow $0.41 cents of every dollar it spends
Now, as far as where the money goes: Here is a nice little graph
that breaks down federal spending by category. I won't link the actual image because it's huge, but I'll summarize the numbers:
Percentages listed are the % of total spending for the indicated category
Social Security: 19.63%
Unemployment/Welfare/Other mandatory: 16.13%
Interest on national debt: 4.63%
19.63 + 16.13 + 12.79 + 8.19 + 4.63 = 61.37%
So, since revenues only cover 59% of what the government spends, and 61% of what they spend goes to entitlement programs and interest payments, that means that every dime of what the government takes in taxes goes directly to paying for entitlements and unavoidable interest, and that it is IMPOSSIBLE to even begin addressing paying down the debt without drastic action on entitlements.
Consider further that we aren't even feeling the full impact of baby boomer retirements yet, and interest rates are being held artificially low by games being played by the Federal Reserve. What do you think will happen to these numbers when the retired population increases dramatically and the interest payments on the national debt increase as rates rise?