We have more bleak news courtesy of the federal government. The federal debt is about to consume our national economic output, and guess what the culprits are. You nailed it, healthcare and entitlements. The Washington Times reported the following:
The Budget Office, a nonpartisan in-house think tank for Congress, projected that the federal debt is set to rise from 74 percent of economic output today to 103 percent by 2040, driven by spending on government healthcare and retirement programs and interest payments on the debt.
But the larger development is the government dedicated more and more tax dollars to entitlement and healthcare programs.
Spending on Social Security, Medicare, Medicaid, Obamacare subsidies and other healthcare programs will rise from an average 6.5 percent of gross domestic product over the past 50 years to 14.2 percent of GDP by 2040
There is a silver lining is this black cloud.
Under current law, on the other hand, all other government programs would feel the pinch. Spending on items other than entitlements and interest payments would drop from an 11.6 percent of GDP average to 6.9 percent.
That’s one way to put a check on these unelected and unaccountable federal bureaucrats.