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  • Chart of the Week: Entitlement Spending Will Nearly Double by 2050

    President Obama has called Rep. Paul Ryan’s budget “an attempt to impose a radical vision on our country,” but as this week’s chart illustrates, if something radical doesn’t happen, entitlement spending will nearly double by 2050. The amount of spending on Medicare, Medicaid, Social Security and Obamacare subsidies will soar over the next 38 years, leaving future generations with an alarming debt burden.

    Congressional Budget Office predictions show that in 2010 entitlement spending attributes 10.3 percent of GDP, then jumps to 19 percent of GDP by 2050. David John, Heritage’s senior research fellow in retirement Security and financial institutions, explains why in the context of last week’s Social Security trustees report:

    The April 23 report shows that all people who receive Social Security benefits face about a 25 percent benefit cut as soon as 2033—three years earlier than predicted in last year’s report. The program’s long-term deficit is now larger than it was before the 1983 reforms. In order to pay all of its promised benefits, Social Security would require massive annual injections of general revenue tax money in addition to what the program receives from payroll taxes.

    Starting in 2010, Social Security began to permanently spend more than it takes in. From now on, Social Security will require large and growing amounts of general revenue money in order to pay all of its promised benefits. Even though this money will come technically from cashing in the special-issue bonds in the trust fund, the money to repay those bonds will come from other tax collections or borrowing. The billions that go to Social Security each year will make it harder to find money for other government programs or will require large and growing tax increases.

    The expansion of these entitlement programs translates to higher taxes. “Unless Congress acts soon,” John writes, “younger workers can look forward to paying full Social Security taxes throughout their careers but receiving only about 75 percent or less of the benefits that have been promised to them.”

    The problem extends to Medicare as well. Like other entitlement programs, it’s also on an unsustainable path, a situation made even more dire by Obamacare. That’s why Heritage has offered a plan that would reduce the debt and fix the entitlement crisis. It’s called Saving the American Dream, and like Ryan’s budget proposal, it actually solves problems rather than punting them to a future generation.

    Posted in Featured, Obamacare, Scribe [slideshow_deploy]

    10 Responses to Chart of the Week: Entitlement Spending Will Nearly Double by 2050

    1. Slick says:

      Does ANYONE even really care? I mean if this was even remotely important to thousands of Americans, they would be up in arms over the possibility of what it means for their children, and even more outraged over what it means for the future of their grandchildren!

      But it appears to me that we are now living by the philosophy "Live today for tomorrow you may die!" The prevalent attitude seems to be that most Americans just don't CARE what happens "after" . . . they just want what is theirs NOW!!!! Even seniors who will not be effected are AGAINST making changes!!! Why is that?? When did we become such a self-centered nation? Well, it probably started right about the time that there was a national push to remove God from just about everything in our lives. Without the guidance of Biblical principles like "Do unto others as you would have them do unto you", our society appears to be doomed!

      Perhaps the end of the world is NOT the worst thing that could befall us!!!!

    2. Pingback: Chart of the Week: Entitlement Spending Will Nearly Double by 2050

    3. Stirling says:

      Once the money runs out for the Rich and Working class, then those who are reciveing entitlements will find themselves the target of Additional Government Taxes. Meaning the Ponzi Scheme of Entitlements will boomerang on those who support them.. Given the ammount of people by 2050 that will be reciving them (entitlements) they will by far be the largest block in the bloated Governments crosshairs.

      When government excessively grows nobody is imune to the reach of it's tenacles.

    4. Bobbie says:

      Distorting common law is radical Mr. Obama, that only men of the lesser would do.
      Sacrificing America(ns) freedom is radical, Mr. Obama that only men of the lesser would do!
      Abusing your authority, helping these men escape accountability while holding innocent men accountable to the consequences of the truly accountable is radical, Mr. Obama.
      Promoting the youth through the low standards of public education to protect teachers and their unions' pay and benefits is radical, Mr. Obama.
      Conditioning minds to need college education for hands on job training or to make up what was neglected in high school is radical, Mr. Obama.
      indoctrinating innocent minds is radical by government force is radical, Mr. Obama.

      Allowing the truth of America's history to be replaced by those of inner weakness is radical, Mr. Obama. Changing history only reflects the lesser of men with pompous egos.

      Dividing people by skin color is radical, Mr. Obama.
      Government paid by peoples money but favors by discrimination is radical, Mr. Obama. Especially when the favors are for the tax exempt!
      Denying accountabilities in your control is radical, Mr. Obama.
      Emulating unions above the good will and minds of free people is radical, Mr. Obama.
      Ignoring the voiced hatred of one man's skin color that you yourself promote is radical, Mr. Obama.
      Having a president recognize and publicize people's personal private matters is radical, Mr. Obama.
      Neglecting your responsibilities defined by the American peoples' Constitution is radical, Mr. Obama.
      DISTORTING the Constitution is radical, Mr. Obama that only men of the lesser would do.
      If America wasn't forced to deal with your costly radical leadership, America would have minimal/honorable entitlements Mr. Obama, that men of the lesser have no eyes to see and no ears to listen.

      Cleaning the costs of your radical leadership takes drastic measures, Mr. Obama. You and the thin skinned following you are going to have to toughen up, Mr. Obama. At least immigrants have another choice.
      Please correct me if I'm wrong but I can't believe immigrants came to America to be put in a class of protection from white people??!!!! That is so low to condition the minds into white supremacy when it isn't seen in the general white public only heard from the weaker some with authority. I'm not saying it isn't there. Chris Mathews, Ed Schultz, Bill Mahr, Nancy Pelosi, Debbie wasserman schultz, etc., admits it quite often. Taking advantage of America's freedom that got them where they are TODAY, now they want GONE from the rest of us!

    5. Bill Witter says:

      I get really tired of Social Security and Medicare being lumped into and called "Entitlements." I have paid into Social Security for 51 years and Medicare since it's begining. In fact, I still pay $100.00 per month for Medicare. It is not my fault that our government has raided the "Truat" fund and replaced the money with IOU's.
      Maybe you young people need to learn how to balance the budget – oh, wait, we have not even had a budget in 3 years. I think I begin to see a problem here!

    6. Eric Novak says:

      The boomers will be retiring, collecting social security, and using Medicare. Shocker! Let's dump them now so the old can be suckered into investing in real estate default swap mutual funds. Hertitage has some good analysis except for their habit of implying that SS and Medicare are like food stamps for unemployable single mothers and Section 8 housing vouchers.

      • Bobbie says:

        Where's proof that it's going only to those rightfully entitled? Those that pay(id) in. If it was honorably run and accountable, there wouldn't be a problem today. Government control corrupts, misappropriates money at their convenience, their politically gaining convenience. When my sister died her two kids fresh out of high school, applied and got her social security? Neither of them tax payers. Both able bodies. Lots of discretion when it comes to qualifications. If there are qualifications, those the government holds expectations to follow are sacrificing their benefit for those who receive without qualifying the same and without paying a single cent. My sister's ss should've stayed for people entitled. There's corruption and favoritism that wouldn't exist in a constitutional government who would have honor to respect and hold accountability…

    7. The amount of debt being added each year is truly alarming. When the citizens DEMAND that politicians balance the budget then maybe it will happen. Until them, expect more of the same.

    8. Debra says:

      My husband and I have worked for 50 years of our lives paying into the SS system! He just turned 62 the other day. Because of the type of job he's had to work for over 20 years of his life, his health is deteriorating. We applied 4 months ago for SS to start at 62 for him because he needs to quit. When we checked on it a couple of weeks ago, they said no problem your check will be deposited in May. Well, here it is May 4th, NO CHECK! My husband called SS — they told him that he won't receive his first check until June 27th!!!! He's already put in his quiting day of May 15th! NOW what are we supposed to do?

      They say fixing the system by raising the retirement age to 68 is the way to go! WELL wait until they are 60, working 14 hours a day at a tough physical job and see how they feel about being told they can't retire yet!
      AH but all the illegal immigrants in our town are so very happy they can work with stolen SS# sent their money back to their old country AND receive free health care benefits!!!!!!!!!!!

      WHAT IS WRONG WITH THIS PICTURE!!!!!

    9. Don hart says:

      You need to stop using the phrase "entitlement spending". This is "obligatory spending" arising from a contract with the American people and like debt service it must be paid. Discretionary spending must be cut including programs and personnel.

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