Friday, July 8, 2011

Mandatory US Government Spending Explosion

A recently issued Congressional Research Service report analyzing the projected growth of US mandatory government spending had several very frightening graphs.  Mandatory spending includes those funds "mandated" by law.  

Most people know about social security and medicare, but these programs include government and military veteran pensions, and about 8 income security programs.

As can be noted in F2 below, there has been a major increase from the 38% of the total funding from back into the 1970s.  After a huge spike last year, even with the reduction, we are currently to close to 62%  will a slow rise going forward. (click to enlarge)





This means that unless there is a change to the laws requiring this spending, then all the US Congress is really addressing in their current scrabbles is the smaller 38% left over. This also includes a growing annual interest payment on the ballooning public debt. 

Of the less than 1/3 remaining of the budget, all defense, environment, education and myriad other services must be funded. Some projections of this mandatory share suggest it will be reaching close to 80% in another 30 years if left unchecked.

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