This helps to understand America's financial messHere's The Only Chart You Need To See To Understand Why The US Is ScrewedBusiness Insider
We're still working our way through Kleiner Perkins' partner Mary Meeker's excellent analysis of the financial condition of the United States. We'll be breaking out some key sections in the next few days. In the meantime, here's the one chart you need to see to understand why the US is screwed. This is the "income statement" of the United States in 2010. "Revenue" is on the left. "Expenses" are on the right.
Note a few things...1)
First, "Revenue" is tiny relative to "Expenses."2)
Second, most of the expense is entitlement programs,
not defense, education, or any of the other line items that most budget crusaders normally howl about.3)
Third, as horrifying as these charts are, they don't even show the trends of these two pies: The "expense" pie is growing like gangbusters, driven by the explosive growth of the entitlement programs that no one in government even has the balls to talk about. "Revenue" is barely growing at all.
As we'll illustrate with more of Mary's charts next week, the US cannot grow its way out of this problem. It needs to cut spending,
specifically entitlement spending. We hereby announce that we'll give a special gold star to the first "leader" with the guts to say that publicly.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~These expenses are continuing to grow and grow and grow. Pretty soon the income on the left is gonna be the size of the earth to the moon by comparison. This amply illustrates the problem that we have. And that growth alone is not going equalize these two pies in size. It's going to require spending cuts.
We've all heard it, now we can see it. SPENDING CUTS is what its all about now ... and not just in Wisconsin.
HT to the EIB