Obama and Democrats refuse to deal with the real problem
The end of 2012 was marked by lawmakers engaging in a distracting fiscal cliff debate over tax rates when the solution to the real fiscal crisis lies in an entirely different area of the budget.
Federal spending on entitlements and interest on the debt drives the federal budget crisis. Together the three major entitlements of Social Security, Medicare, and Medicaid (including Obamacare), as well as net interest, make up more than half of all spending in the federal budget today. Their share of the budget will grow to over two-thirds of all spending in 10 years.
By 2025, the major entitlement programs and net interest together will eat up all tax revenues collected in that year. This implies that all other government spending, including for national defense, would have to be financed by borrowing.
This projection by the Congressional Budget Office assumes that historically low interest rates continue at least until 2015 and that inflation will be modest, inching up toward 2 percent of gross domestic product (GDP) by 2017. Nevertheless, spending on interest on the debt would double before the end of the decade.
...The chart makes it clear where the Democrats are taking us and it is the road to ruin. They have not been able to articulate a plan that can deal with the spending they have planned. Itis why Republicans should put this chart on the House floor before anyone votes for the fiscal cliff bill much less a debt limit extension. Someone should also corner Obama and make him answer who to deal with the problem instead of the sycophantic interviews he gets from the major networks that appear to be as clueless as he is.