Monday, March 10, 2014


I've lost count how many dozen times over the years I've warned that the rise in entitlement spending will transform the federal government into a money-transfer waystation.  Tax revenues will come in and just turn around and go to entitlements and interest on the debt, leaving little behind for what we call "government."

And here it comes...."70% Of U.S. Spending Is Writing Checks To Individuals"
Buried deep in a section of President Obama's budget, released this week, is an eye-opening fact: This year, 70% of all the money the federal government spends will be in the form of direct payments to individuals, an all-time high.
In effect, the government has become primarily a massive money-transfer machine, taking $2.6 trillion from some and handing it back out to others. These government transfers now account for 15% of GDP, another all-time high. In 1991, direct payments accounted for less than half the budget and 10% of GDP.
These budget battles are fighting over the scraps on the table and the squeeze will only get worse as Social Security, Medicare, and Obamacare swallow the budget whole.


A massive money-transfer machine that takes from some and hands out to others said...

2.6 trillion... 2.6 trillion... where the heck have I heard that number before?

Every Obama voter said...

But Booooooosh!