While the press was distracted by the misnamed “fiscal cliff” we began the year with a 13-figure deficit and a 14-figure national debt—the result of today’s American borrowing.
Dems suggest that federal tax revenues have fallen, while federal spending has generally proceeded a reasonable levels. Republicans suggest that tax revenues have more or less flat lined, while spending has skyrocketed.
Taxes have risen substantially, yet an explosion in federal spending has dwarfed these increases. 1962 federal tax revenues were $534 per capita or in today’s dollars $4178. Last year federal tax revenues were $7793 per capita. So from 1962 to 2012 taxes rose 87% even after accounting for inflation and population. 1962 the federal government spent 7% more than it had available to spend—$1.07 going out for every dollar coming in. With Obama in the White House it has spent $1.56 for every dollar available.
The federal government gave itself a 151% raise on top of inflation and population growth. As a result rather than running a surplus of $57 billion in 2012 we ran a deficit of $1,089 trillion.
During the Bush-Obama economic slump the federal government now has 87% more money available to spend-per person after adjusting for inflation. While the real per-capita taxation has nearly doubled over the past 50 years real per-capita spending has come closer to tripling. We’re on a fast track toward insolvency as a nation for one simple reason: our federal government has been spending far, far more than even our hefty tax increase have been able to cover.
Obama keeps stating “WE DON’T HAVE A SPEDNING PROBLEM”
Liberals generally try to mask our rising levels of federal taxation—and our far greater increases in federal spending—by reporting them in relation to the GDP, rather than in relation to inflation and population growth.
What are we spending such colossal sums of borrowed money on? 1962 to 2012 the share of total federal spending that went to national fell from nearly half (49%) to less than a fifth (19%). Where then is all of the borrowed money going? Here’s a hint, Medicare and Medicaid and on Obamacare which didn’t exist in 1962.
While defense spending fell by 1.5%, real per-capita federal spending aside form defense rose by a whopping 298% from $2284 in 1962 to $9098 in 2012. thus instead of a $1 trillion surplus we ran a $1 trillion deficit.
Over the past 50 years defense spending has essentially flat lined, taxation has nearly doubled, total federal spending has for more than doubled and non-defense spending has quadrupled. In only the most stubborn ideologue could blame our mind-baffling deficits on insufficient taxation or excessive defense spending.
Jefferson wrote-“private fortunes are destroyed by public as well a private extravagance”. He warned that public debt is the fore horse of the frightful team of public mismanagement that leads to the misery, suffering, wretchedness and oppression of private citizens. The only way to escape our worsening fiscal calamity is by reforming Medicare and Medicaid to make them affordable, replacing Obamacare and enacting pro-growth policies and most simply cutting federal spending almost across the board.
Source—weekly standard, jeff anderson