America’s Insolvency is Mandatory

by | Dec 1, 2022

America’s Insolvency is Mandatory

by | Dec 1, 2022

c24aaf94 0771 4325 bbbd c39ffaaa9fde 2428x1762

In October, the U.S. national debt reached $31 trillion, and the government is projected to wade another trillion dollars into the red in the 2023 fiscal year. The longer-term picture is even gloomier, with the deficit expected to double to $2 trillion by 2030.

Indeed, the longer the horizon, the worse things get. At 98% of Gross Domestic Product, the current national debt is the highest it’s been since just after World War II. On its current course, the debt will soar to 185% of the country’s entire economic output by 2052.

What’s particularly troubling is that the government’s 2022 $1.3 trillion-dollar deficit came at a time of near-record tax intake. At 19.8% of GDP, Uncle Sam’s 2022 tax haul was close to the all-time high of 20.5% set in 1944.

Washington doesn’t have a revenue problem—it has a spending problem.

What few people realize, however, is the extent to which the U.S. government’s disastrous trajectory is on autopilot, thanks to the fact that an ever-larger proportion of federal spending happens without Congressional action.

To understand why, it’s important to first understand that there are two main categories of government spending:

  • Discretionary spending, which requires a vote by Congress as part of the annual appropriations process.
  • Mandatory spending, which is dictated by previously-enacted laws and thus happens without an annual vote in Congress. Social Security, Medicare and Medicaid comprise a big majority of mandatory spending.

Here’s where things have taken an ominous turn. In 1965, mandatory spending accounted for 34% of all federal spending. Today, that share has more than doubled, with mandatory spending representing 71% of federal outlays. With overall spending higher too, mandatory spending is much larger slice of a larger pie.

Read the rest of this article at Stark Realities with Brian McGlinchey

Stark Realities with Brian McGlinchey

Stark Realities with Brian McGlinchey

STARK REALITIES WITH BRIAN McGLINCHEY is a Substack newsletter that undermines official narratives, demolishes conventional wisdom and exposes fundamental myths across the political spectrum. McGlinchey has spoken at the national conference of the Ron Paul Institute for Peace and Prosperity, and has appeared on the Scott Horton Show, Tom Woods Show and Ron Paul Liberty Report. Receive new Stark Realities posts via email

View all posts

Our Books

libertarian inst books

Related Articles

Related

TGIF: What Free Market in Health Care?

TGIF: What Free Market in Health Care?

Contrary to a popular article of faith, America has no free market in health care—far from it. Consider this: the largest lobby in Washington, D.C., is—wait for it—the health care and health insurance industries. Last year, they spent 5.8 times the amount the...

read more
A Critique of Practical Hasbara

A Critique of Practical Hasbara

Immanuel Kant published The Critique of Pure Reason in 1781. It was the same year the Rebel Alliance triumphed at Yorktown, Virginia. The victory at Yorktown made possible the decline of the British “liberal” empire and the eventual rise of Washinton DCs “non-empire”...

read more
The Switzerland Summit: Peace Through Delusion

The Switzerland Summit: Peace Through Delusion

Ukraine has been at war for over ten years, and even the political establishment wipeout in the European elections has not managed to shock the Western ruling class back into coherence. Nothing could provide a clearer example of their clownish nature than the recent...

read more
Smashing the UK’s Statist Mindset

Smashing the UK’s Statist Mindset

Mainstream British political thought processes contain an epidemic of dreadful reasoning. Witness the average political interaction between “popular” British parliamentarians and voters, think through the reasoning of the topics discussed, and you will know exactly...

read more
Will Trump Learn from Bump Stock Battering?

Will Trump Learn from Bump Stock Battering?

The Supreme Court last Friday struck down one of the most controversial gun control edicts in recent years. The ruling on bump stocks is being widely hailed as a victory for an expansive reading of the Second Amendment. But it is also a stark rebuke to Donald Trump’s...

read more

Pin It on Pinterest

Share This