Friday, November 4, 2011

Budget problems

A glance at the numbers tells the whole story. The problem is this: will people accept a solution? First the chart
Ok, here's the main thing to notice:  Social Security and Medicare/Medicaid cost nearly 1.5 trillion, but the taxes dedicated to pay for these raise only 865 billion, which is over 600 billion short.  There's the problem. These programs have been self supporting in the past, but aren't now. Not even close.

The solution?  Raise taxes or cut spending or both.  But the problem is that these expenditures fall on the poorer part of the population, so raising taxes upon the working people won't be popular.  Cutting spending won't be popular either.

No wonder they can't solve it.  Politically, this is an impossible problem.  No matter which way you turn, you will lose.  Any politician who tries will be committing political suicide.

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