Tuesday, December 9, 2014
Government spending madness!
The Heritage Foundation has just released its report on 'Federal Spending by the Numbers, 2014'. It makes horrifying reading. Here are a few of the most important figures in graphical form.
Yes, 69% - well over two-thirds - of all federal government expenditure went to entitlement and welfare programs. Out of every $3 the government spent, just over $2 was a handout of one sort or another. Less than $1 went to buy things the country needs.
In order to spend all that money on entitlement and welfare programs, the US government is deeper in debt than ever before - and note that this figure does not include future promises to taxpayers, which add tens of trillions of dollars to the debt load, but keep it off the books so that the politicians can pretend it doesn't exist. That way they can fool the electorate into re-electing them. If voters understood the true depths of our financial peril, they'd demand the heads of everyone responsible.
That last graph says it all, doesn't it?
This level of expenditure can only be sustained because the Federal Reserve is pumping newly-minted currency into the economy, with no assets whatsoever to support it; and it's been buying US treasuries for its own account, using that currency. Without that, the government couldn't borrow enough money to fund its expenditure. No-one else would be fool enough to lend it that much money by buying its bonds. It's been that way for several years already, as we've discussed here before.
The US government is, quite simply, addicted to spending. It can't and won't cut back on entitlements, because if it did so those who receive them (and have come to depend on them) would vote those responsible out of office at the earliest opportunity, and vote in replacements who'd bring back the 'gravy train'. Meanwhile, those of us who are working to support ourselves have to support ever more onerous taxes, fees and duties to pay for what the parasites among us so eagerly consume.
We're on a hiding to nothing. This can only have one end . . . and it's going to be messy.