Don’t Believe the Media: The Deficit Is Not Looking Good

Friday, August 29th, 2014 and is filed under Blog, Economy

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No one is surprised but it’s always like a blast of cold air to hear a new total for the United States deficit. This year’s CBO forecast reported a federal deficit of $506 billion and spending is projected to be around $3.5 trillion.

Something’s got to give.  While news reports are calling the federal deficit “relatively modest,” it’s hardly a number to scoff at. The number is down from last year’s $680 billion but there’s a lot of work to do – and the best place to start shoveling is in America’s huge pile of entitlements.

Total mandatory spending for 2014 was $2.54 trillion, which included social security, Medicare, Medicaid, other healthcare expenses and net interest. The idea of cutting entitlements isn’t fun – but it’s necessary to create a sustainable future for the country.

Unfortunately, while President Obama is in office, things don’t look to be changing and Medicaid will account for the largest increase in spending this year, with Social Security coming in second.

On the Left, Rep. Chris Van Hollen, ranking Member of the Budget Committee, blamed Republicans for a protecting “special interests and the very wealthy.”

Republicans blame out of control spending, of which entitlements are a major part. Unfortunately, the gridlock will ensue until at least 2015.  And if we’re to believe CBO, things are looking scary. They write in their report:

“Later in the coming decade, if current laws governing federal taxes and spending generally remain unchanged, revenues would grow only slightly faster than the economy and spending would increase more rapidly.”

If you feel like taking this up with anyone at the Budget Committee, here’s the list.