Defense, Social Security, Health Care

I was in a discussion with a friend recently about the national debt, a topic that we are both concerned about. I was trying to point out that most of the federal budget is being spent on just a few things but didn't have the numbers in front of me to confirm this. Now I do.

The chart comes from Wikipedia; they used publicly available data.

There are three general areas of federal spending that make up a significant portion of the federal budget: defense, Social Security, and health care (Medicare and Medicaid). (Since this is 2008 data, there is no mention of the new health insurance reform and it will several years before we have data on how much that is actually costing us). The total of these three is 58% of our budget. If you throw in welfare and other "non-discretionary" spending the total comes in at 67%.

If we are serious about being fiscally responsible we need to look at cutting spending and when cutting costs, you don't look at the small things first. Completely eliminating, say, the funding for the Department of Justice will not make much of a difference in terms of limiting spending. Killing NASA won't help out much either. The federal government is involved in many, many, programs but when you get look at the data, most of these spend very little in the scope of the entire federal budget.

Here's my point: if you get in a discussion about balancing the federal budget just remember the big three. Make it a mantra. Defense, Social Security, Medicare & Medicaid. Don't let anybody get you off topic with talks of killing NASA or ending the Department of Education. Everybody has a part of the federal government that they love to hate and often political motivations can hide behind the mask of fiscal responsibility. (This is the reason I don't like including the "welfare and other non-discretionary" spending in the total; everybody has an opinion about welfare.) These programs are small fry's and killing them won't really help us out any.

To balance the budget we have to choose to confront the reality that most of our spending is in programs and that most people see as non-negotiable. Even my wife's very conservative mother, a woman who wants a smaller federal government, lower taxes, and a balanced budget, does not want to see significant cuts to the entitlement programs of Social Security and Medicare. Reality is unforgiving in this regard, though. The big three need be smaller. Defense, Social Security, Medicare & Medicaid.

How are we going to get from there to here? What sacrifices will you make to bring the help bring the country back into financial balance? The federal government has for some time now been balancing its budget by borrowing and we all know that this can't go on forever. The sooner that we get serious about a legitimately balanced budget, the sooner we can start paying down the debt. In 2008, we spent 9% of our federal dollars just on interest for the debt.

Defense, Social Security, Medicare & Medicaid.

We are the federal government. Don't simply blame the politicians for making politically expedient choices and avoiding unpopular ideas like cutting Social Security benefits. These ideas are untenable only because we, the people who elect them, don't want to make the choice for ourselves. If cutting Social Security benefits had our strong support then there is no doubt elected officials would openly advocate for it. We, the electorate, have to be willing to sacrifice if we expect our representatives to make the changes in law that will be required to balance the budget. Don't blame them; we gave them the job.

Defense, Social Security, Medicare & Medicaid.