Tuesday, February 23, 2016

The Obama Budget

You would think the example of Greece would get folks attention.  Apparently, the White House is oblivious.  If adopted, the Obama budget, submitted last week to Congress, would put the US on a path to surpass Greece in debt-to-GDP ratio within a generation, even if Greece's situation deteriorates.

Meanwhile, the two aspirants in Obama's party who are vying to succeed him make Obama out to be a piker.  They would bankrupt the US at a much, much faster pace than Obama.  Clinton and Sanders are not looking at Greece as the future; they are looking at Venezuela.

The simple truth is that medicare alone, without considering social security, medicaid, free this, free that, will bankrupt the US within the next quarter century.  Nothing else is required.  All the pipe dreams about dealing with global warming, free tuition, and on and on have no room in future budgets since medicare will consume all of the US resources withing the lifetime of the current millennial generation.

As for infrastructure and things like that -- all much needed -- there is simply no way to provide the funding for anything except medicare...period.  That's the hard, cold truth and it is simply a question of arithmetic.

If by some miracle health care spending by the government could be completely scrapped (with horrendous implications for the elderly and the poor), social security and unfunded public employee retirement systems, by themselves, are on track to consume the entire GDP with the next forty years.

There just isn't any room for anything else.

That's what makes the Clinton-Sanders debates surreal. There are talking about a world that is mathematically impossible.

As for education, criminal justice, national defense, infrastructure -- forget it.  There is just no room for any of that.  Increasingly, these functions will be abandoned in the US to make room for the exploding entitlements that will reduce the US to a status somewhere between Greece and Venezuela.  It's just a matter of time and arithmetic.

No comments: