posted at 11/11/2012 8:10 AM EST
In response to ctredsoxfanhugh's comment:
In response to TrotterNixon's comment:
Combining the Bush tax cuts (extended by Obama) and the cost of 2 wars are by far the biggest contributions to the deficit.
The biggest contribution to the deficit and the debt is entitlements and the interest on the federal debt, which are over half the federal budget when excluding social security. Social security pays out massive amounts of money beyond what the average rececipient paid in with market interest growth during the recepients working years, due to no limit on payments to dependents or age of the recipient or a qualifying spouse. When that is included, it is the modern welfare State which is the biggest and most fiscally damaging cause of the deficit and massive trillions of dollars in exponentially mushrooming debt.
The Bush tax cuts, even if one buys the socialist public policy propganda that tax cuts only decrease federal tax revenue dollar for dollar when attribued to the federarl revenue year to year changes on the books, are, according to OMB, is less than 10% of the annual federal budget.
The defends budget, with the blood for oil against peaceful Muslims, is less than 20% of the annual federal budget.
The percentage of the American people on entitlments is increasing at levels that can't be sustained even if Buffet and Osama Obama nationalize private property and donate their millions into the new National trust of the new Peoples Republic of America.
The majority of Americans pay no federal income tax. In order for the entitlement welfare State to survive in it's current expansion trajectory, it will be necessary to impose mandates like the recent healthcare mandate which was called a federal tax increase by the U.S. Supreme Court. This will be the largest tax increase on lower income workers in American history.
One who claims to be optimistic about the ecnomy is either a fool or dependent on entitlments in the household, or both.
The American national electorate is made up of utopian seeking spoiled children who respond to federal identity politics. It is unlikely that anything but the fiscal entitlement cliff will be kicked down the road to imploed on those won't be dead like the demagogues who have pandered it for poltical power. But the best interst of the delinquent and ignorant minds in this Nation is to have the U.S. debt rating downgraded to curb their ability to borrow at higher levels exponentially to sustain the expansion of the welfare State This will force a reform of entitlments and elimination of the massive useless federal parasitic bureaucracy, which will bring about a long term recovery that will emerge from a shrinking size of the welfare State as percentage of GDP.
Defense spending s closer to 25% and interest is around 6% social security andMedicare take up around 36% social welfare accounts for about 12%
Those deficit drivers are ALL structural, the only real contribution OBAMA really made was extending out unemployment.
The baby boomer generation is retiring which is causing Medicare and SS to inflate at an increasing rate, add that to a recession which has receipts as a % of GDP at an all time low and a war that no one paid for and you have a huge deficit.......but hey let's just keep blaming the black guy.
How so, hugh, because he looks more black than white, when he's equally both??