I used to think I had a decent handle on the federal budget problem. Apparently not. Until watching this video I did not know that for 2012 mandatory spending, mainly entitlement programs plus interest payments, adds up to more than total federal revenue.
In other words, every dollar spent on day to day operations of the federal government, both military and non-military related, has to be borrowed. The federal government could not balance its budget even if it spent nothing, $0.00, on the military, on education, on commerce, on energy, farming, you name it.
There’s a big chunk of “other mandatory spending” I’d like to learn more about. But regardless of what that includes, there’s just no getting around the reality that the federal government’s promises regarding payments for health care spending and its promises to retirees are not going to be kept, at least as currently stated.
And as someone has recently pointed out, the country is running out of time to be able to successfully correct the problem.
Thanks to my big sister for sending me the link.