Thursday, June 4, 2009

Transfer payments are growing at an unsustainable rate


These charts come from a very nice, relatively new blog by Donald Marron. The first chart shows government transfer payments as a share of personal income, and the second chart breaks out the major components of the transfer payments. "Transfer payments from the government now make up more than one-sixth of American incomes, the highest ever." And he adds, "Spending on the major entitlement programs — Social Security, Medicare, and Medicaid — is on an unsustainable course."

So many things today are growing at unsustainable rates: government spending, the federal deficit, government spending as a share of GDP, social security, medicare, etc. It's obvious that these trends
can't continue. And if a trend can't continue, it won't. At some point the public is going to be fed up with the suffocating size of government, and they are going to shout from the rooftops to STOP. I only wish I knew when this happy day would come.

6 comments:

Donny Baseball said...

Scott-
This is plausible (but unlikely): California goes bankrupt. The roughly $20 billion hole your state now finds itself in grows to much much more when projected 2009 tax revenues don't appear as planned. The state can't cut spending fast enough and unions stiffen opposition. The Golden State simply runs out of money early next year. Smart Republicans point out that 1) this is the same path the country is on and 2) California will not be the only state to come begging to the federal gov't. So voters in places that are supposedly trending "blue" or purplish say no mas and take away Obama's pliant Democrat-majority Congress. We get gridlock and we are saved for a year or two until we can re-vote in 2012 for whether we want the tremendous and radical change that Obama represents. My theory is that America wanted "a change" (as in merely a new face) after exhaustion with Bush, not true "CHANGE" the likes of which Obama is embarking on. Small government folks of all stripes will have to band together to pin this government down in 2010 and frame 2012 as "did we really want this?" Persistantly high unemployment and $4 gas will help us in this effort. That's the only way I see it playing out.

Paul said...

Scott,

Check out Geoff'schart detailing the unemployment rate vs. the Messiah's projections he used to get us to drink the stimulus swill.

Public Library said...

I could not agree more however both Republicans and Democrats are bankrupt so do not expect either to deliver us from this calamity.

Donny Baseball said...

Public-
I agree. We need not replace Dems with Repubs so much as slaughter the incumbants regardless of party.

Donald said...

Scott & Donny Baseball,
The date we make it STOP is 11/04/2010. I am in several grass roots organizations that are mobilizing to elect a fiscal conservative in every congressional district. The Independence Caucus "icaucus.ning.com" (free to join) is one group that actually has a good plan, starting at the precinct delegate level, to primary non-conservative incumbents. It only took 1000 volunteers to knock off a GOP incumbent in Utah. It can be done. All it takes is commitment and perseverance to get the truth out. Once those who are committed get the apathetic to join, our numbers will be overwhelming. Like you, Scott, I am an optimistic person and I believe we will succeed.lediom

Scott Grannis said...

Donald: Thanks for the info, I think you are right. Voters are going to have to put a stop to this runaway government spending train. I will check out the Independence Caucus