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Author: DrBob2 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 445587  
Subject: Re: Obama backs same-sex marriage Date: 5/10/2012 12:35 PM
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The big issue looming over our future is entitlement reform,
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That is true only among those who want to continue to use the SS trust fund to pay for obscene military spending and supporting Israeli colonzation of Palestine. Stop both and SS is no longer an issue.


Unfortunately, the problem is bigger than that. Since WW2 Federal tax receipts have averaged some 18% of GDP, even with widely varied tax structures.

Here's the present spending pattern as a percent of GDP:

Defense 4%
Social Security 4
Medical 4
Other safety net 3
Debt interest 1
Everything else 4
.
Total 20%

Here's where we are headed, even if we cut Defense spending in half:

Defense 2% cut the defense budget in half
Social Security 6 the SSA estimates 6%
Medical 10 10% estimate is for 2035, higher later
Other safety net 3
Debt interest 2 both debt and interest rates will increase
Everything else 4
.
Total 27%

Well, 27% of GDP is clearly too much. If 'everything else' (highways, education, the Coast Guard, National Parks, etc.) were cut in half, that would bring the total down to 25%. Maybe other safety net (food stamps. low income housing, etc.) could be trimmed from 3% to 2%. That brings us down to 24%

Painful times ahead.

DB2
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