Thursday, September 6, 2012

"Are Entitlements Corrupting Us?"

The Wall Street Journal asks that question, and answers it:  "Yes, American Character Is at Stake".  Here's an excerpt from the article.

Within living memory, the federal government has become an entitlements machine. As a day-to-day operation, it devotes more attention and resources to the public transfer of money, goods and services to individual citizens than to any other objective, spending more than for all other ends combined.

The growth of entitlement payments over the past half-century has been breathtaking. In 1960, U.S. government transfers to individuals totaled about $24 billion in current dollars, according to the Bureau of Economic Analysis. By 2010 that total was almost 100 times as large. Even after adjusting for inflation and population growth, entitlement transfers to individuals have grown 727% over the past half-century, rising at an average rate of about 4% a year.

In 2010 alone, government at all levels oversaw a transfer of over $2.2 trillion in money, goods and services. The burden of these entitlements came to slightly more than $7,200 for every person in America. Scaled against a notional family of four, the average entitlements burden for that year alone approached $29,000.

. . .

A half-century of unfettered expansion of entitlement outlays has completely inverted the priorities, structure and functions of federal administration as these were understood by all previous generations. Until 1960 the accepted task of the federal government, in keeping with its constitutional charge, was governing. The overwhelming share of federal expenditures was allocated to some limited public services and infrastructure investments and to defending the republic against enemies foreign and domestic.

In 1960, entitlement payments accounted for well under a third of the federal government's total outlays—about the same fraction as in 1940, when the Great Depression was still shaping American life. But over subsequent decades, entitlements as a percentage of total federal spending soared. By 2010 they accounted for just about two-thirds of all federal spending, with all other responsibilities of the federal government making up barely one-third. In a very real sense, entitlements have turned American governance upside-down.

There's much more at the link.  It's essential reading, IMHO.

A few days ago I wrote an article titled 'Entitlement Whores'.  This WSJ article provides all the confirmation I needed that the title I used was very appropriate.

If we don't change our national entitlement mentality within a very short space of time (and if we don't elect a government this fall that will take meaningful, concrete steps to not only limit but claw back entitlement spending), we won't have an economy left within the foreseeable future.  That's not a partisan political statement - it's mathematical fact.



SiGraybeard said...

Strangely, the obsession with entitlements in a far off country could start a domino fall that takes down our economy regardless of diligent we are.

Joe in PNG said...

Machievelli once pointed out that a free people can't be enslaved unless it has been corrupted first.
Here you go...