Most critics of the federal budget get to talking about defense spending first, as it has been on the rise since 2000. But as you can see, we’ve spent more on entitlement programs than defense since 1976.
Now, we spend twice the amount on entitlement programs than we do on defense.
For every dollar of GDP, we spend 10-cents on Medicare, Medicaid and Social Security.
This situation will only become more exaggerated. As more Baby Boomers qualify for Medicare benefits health care spending will continue to eat up a bigger portion of our economic output each year.
Something has to give. Watch for major changes as policymakers grapple with the best way to pay for the care of our greying population.
If you haven’t done so already read the Survive & Prosper issue on “Your (Non)Share of Entitlement Programs.”