The saying, “the elephant in the room” or the “800-pound gorilla in the room” should become “The Monster in the room,” when talking about government spending. This is more than a paper problem it is a looming disaster that can and will destroy our Republic. Both Democrats and Republicans have a propensity to ‘borrow and spend’ at an alarming rate. There are many reasons, and none of them acceptable to this American taxpayer. You may disagree and that is one of the things that makes this a great country, we have that right, at least today.
The current spending by our government is $4.746 TRILLION. That is the federal budget for the fiscal year 2020 which is the period between October 1, 2019, and September 20, 2020. That is 21% of the gross domestic product (GDP) based on reports from the Office Management and Budget Report for the FY 2020. That is staggering! It is not a new occurrence and while I hoped it would be reduced it has not been and there is no future projection of reduction.
No, I am not throwing Trump overboard and boarding the lunacy train of the Democrats. Their plans would be even more catastrophic and increase the debt and deficit exponentially. Our impending implosion through debt would be sped up at light speed and our destruction would come sooner rather than later. Neither or pleasant thoughts but facts are stubborn things and I am deeply concerned about our spending and debt in America.
I am a ‘baby boomer’. I am on Social Security. I am on Medicare. I am a retiree who pays taxes. The mandatory spending in the federal budget makes up 60% of the annual federal budget. Within the mandatory spending, we have Social Security and Medicare and that makes this a problem or issue with no easy solution. To immediately curtail spending, at all levels would result in catastrophe for many ‘boomers’ on Social Security and with no financial safety net other than their monthly check from the government. Money, they paid into the program and deserve to receive. Government mismanagement is blameworthy, but the problem exists and the other 40% of spending will not provide a complete fix.
We have what is called discretionary spending which makes up about 30% of the federal budget and in that is the needed funding for our military and defense. We take 10% of our federal budget to pay interest on our national debt and yet it grows and grows and grows every day.
The reality that over many decades Congress has “borrowed” from the Social Security Fund to pay for other programs and have weakened the fund cannot be overlooked. However, a required change is looming in the immediate future and it will impact all discretionary spending and Social Security, recipients. Social Security takes a $1.102 Trillion bite out of the budget, but payroll taxes provide only $949 Billion. The deficit is made up of interest received from the Social Security Trust Fund.
That would not be the colossal problem it is had Congress kept their hands out of the cookie jar. But for too long the government has failed to utilize any semblance of investment wisdom and prudence. Congress has pilfered for their political purposes and the government investment acumen is sorely lacking. That leaves us with the coming problem that will become a nightmare for politicians and for us ‘boomers’ in the near future.
It is projected that by 2034 the outflow of Social Security payments to retirees will begin to drain the general fund. At that point, Congress will not have the cookie jar to put their greedy hands in. The costs will be greater than the interest and income-producing a fiscal dilemma that no politician is willing to address. Our government made a promise to us that they cannot and will not keep in the days to come. Some of us will still be alive to see this disaster and some will not, but the problem is real.
Here is a mandatory program that needs immediate attention. Social Security, Medicare and, in a measure, Medicaid cannot be dramatically changed without causing incredible stress on those receiving the retirement payments. But there is $642 Billion in mandatory spending that can be changed. Here is where I will lose some, win some, and some will be ambivalent taking a ‘ho-hum’ attitude and embrace the idea that it is just paper and not a real problem.
In that $642 Billion we have food stamps, unemployment compensations, child nutrition, child tax credits, supplemental security income, and student loans. The unemployment insurance tax pays about $46 Billion of the $642 Billion. There are also retirement and disability programs for civil servants, the Coast Guard, and the other branches of our military. No, I am not suggesting that we touch the military retirement and there are things that we cannot end without causing catastrophic nightmares for people. It is a problem and not an easy one to solve. We got here slowly, at first, and at Mach-speed in the past few decades.
In FY 2020 it is estimated that the interest on our national debt will be almost $500 Billion. That would pay for 10 Justice Departments one of our fastest-growing expenses. It has been projected that by 2029 that will double, and we will be spending almost a Trillion dollars on interest to service our debt. That is mind-boggling to me!
What does this mean? Several things come to mind. It will result in increased taxation on virtually everything. That is being resisted by the current administration but if the Democrats regain power, we will see taxes skyrocket and spending go off the charts. We will likely see reductions in Social Security but not in the various ‘entitlements’ that they use to buy votes. The illegal immigration problem is taxing our budget and will impact every segment of our society with the demand and desire to provide ‘freebies’ for those breaking our immigration laws.
The underlying desire of the United Nations and many who claim to be Progressives is ‘population control.’ They have a deep-rooted belief that all of us, excluding themselves, have a shelf-life of about 70 years and the sooner we assume room temperature the better. They will reduce our ability to seek and receive medical treatment and there will be a dramatic increase in ‘end of life counseling’ and doctor’s mandated to prescribe pills to help with their desired eugenics.
That is one of the gruesome realities of this insane spending and we must find some way to get a handle on this problem before it is too late. I have lived for over 70 years and enjoyed a wonderful life. I have a desire to live longer and do more for God, my family, and people. I want my children and grandchildren to have the hope of having a long life and freedom. I see those things in jeopardy if we do not get control of this issue and one of the best ways to achieve that is to REJECT the idiocy of the Left and their ‘money grows on trees’ mentality.
God bless you and God bless America!