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October 4, 2013

Charting America's Budget and Debt Problem

By Tyler Durden of ZeroHedge 

In a country in which the aging population wants their (10,000 kcal) cake, and the diabetes treatment for free too, the chart below is what happens.

Bank of America explains:
Where’s the budget problem: The rapid growth in federal spending largely reflects increases in spending on mandatory programs, particularly the major health care programs — Medicare & Medicaid — and Social Security. As a share of GDP, total spending on these programs would rise to 14% of GDP by 2038. That is twice the 7% average of the prior 40 years.
Furthermore, as we have shown previously, anyone preaching about a "stable" 75% debt/GDP should probably first look at the following public long-term chart from the CBO.

Courtesy Tyler Durden, founder of ZeorHedge (EconMatters author archive here)   

The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.

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