In 2010 the U.S. federal government spent about $3.6 trillion, on revenues of about $2.2 trillion (income taxes, etc.). In other words, we spent about $1.4 trillion more than we could afford.
When our government was founded it’s priorities were (somewhat in order); national defense, provision of a national currency and interstate trade rules, interaction with other nations, establishment of roadways, and provision of a federal justice system (supreme court, federal district courts, and federal law enforcement). Today these account for about 28% of federal spending, or about $1.02 trillion. About half of 2010 revenues.
If you add in NASA, and the entirety of the Dept’s of Energy, Commerce, Education, Agriculture, and Interior you get up to about $1.4 trillion. Still well below income.
The rest of our spending is for welfare entitlement programs. Programs that didn’t exist during the first 140 years of our country’s existence, but since the first one 78 years ago, have grown to account for about 64% of federal government spending and all of our annual federal debt.
Approximately half of every dollar spent on welfare, unemployment, Medicare, Medicaid, and other entitlement programs is borrowed. We DO NOT have the money to pay for these programs (nor, by the way, does any country on earth).
Our largest creditor is China. We’ve borrowed about $1 trillion from them and expect to borrow another $1 trillion in the next 18 months. China must be doing something right to have so much money to lend us. Right?
Citizens of China are not free like those of the U.S. or other western democracies. They are effectively slave labor. And while U.S. companies spend trillions of dollars on environmental regulations, China doesn’t have these costs, they just pollute away.
So, the next time you think that our entitlement programs are a good idea, consider that it’s China’s slave labor and human rights abuses, and our tacit support of China’s pollution that provide those entitlements to us.
We’re co-pimps with China. China’s citizens are our whores. Proud?