Revenue Vs. Expenses Pie Chart

[Janice]

This helps to understand America's financial mess

Here's The Only Chart You Need To See To Understand Why The US Is Screwed
Business 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.

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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

[mark1]

this is why we, as a country, are in trouble:

[SSG Snuggle Bunny]

Pretty much.

I s'pose if our GDP we $30T/year it would be so bad but it ain't, so it is.

[Thor]

Mark1, it's customary to  introduce one's self when coming into a new forum if a place is provided. It just so happens that we have exactly that place: http://www.conservativecave.com/index.php/board,8.0.html

[mark1]

The scary thing is, even if we eliminate the entire DOD (which I am not advocating), we will still be in deficit due to entitlement spending. The age at which the younger generation will collect government benefits will have to rise above 65 to avoid catastrophe.   

[SSG Snuggle Bunny]

The scary thing is, even if we eliminate the entire DOD (which I am not advocating), we will still be in deficit due to entitlement spending. The age at which the younger generation will collect government benefits will have to rise above 65 to avoid catastrophe.   

Thats because the adults sold them down the river...with all that the term implies.

[zeitgeist]

Great chart.  I will be putting that to good use.  It is hard to refute political ammo.  Leftwingers love pictures.  I plan to show 'em this.

^5

[Janice]

Its too bad the current republican 'leadership' is so milktoast in their budget cut proposals. You dont just put a band-aid on a bullet wound and call it a day.

If we cant replace them with more tea party candidates this next election, it could be too late for much of anything except the crying. We need LEADERS more interested in whats best for our country (in the long run) than what the news media is going to say about them or getting re-elected (in the short run).

The left wing nut-jobs in the White House and in government in general are going to scream and holler no matter what 'cuts' are proposed. So we might as well go for the jugular. And close the stupid govt down if necessary too. It wont stop necessary services, but its what we elected them to do. We have to stop... then reverse this train ... or we are headed off a cliff to be certain.

[Jmartin]

Its too bad the current republican 'leadership' is so milktoast in their budget cut proposals. You dont just put a band-aid on a bullet wound and call it a day.

If we cant replace them with more tea party candidates this next election, it could be too late for much of anything except the crying. We need LEADERS more interested in whats best for our country (in the long run) than what the news media is going to say about them or getting re-elected (in the short run).

The left wing nut-jobs in the White House and in government in general are going to scream and holler no matter what 'cuts' are proposed. So we might as well go for the jugular. And close the stupid govt down if necessary too. It wont stop necessary services, but its what we elected them to do. We have to stop... then reverse this train ... or we are headed off a cliff to be certain.

It took the Govt. being shut down to fix the budget last time. The Dems are just to  stubborn to have it happen before hand. I say no more temporary budget bills, and let it come to a halt.

[docstew]

It took the Govt. being shut down to fix the budget last time. The Dems are just to  stubborn to have it happen before hand. I say no more temporary budget bills, and let it come to a halt.

Or if they must do temporary budgets, do one every week and cut something else every time.  When I say cut, I mean zero it out.

[mark1]

Government payouts—including Social Security, Medicare and unemployment insurance—make up more than a third of total wages and salaries of the U.S. population, a record figure that will only increase if action isn’t taken before the majority of Baby Boomers enter retirement.

http://www.cnbc.com/id/41969508

[sandnsea]

865 social security revenue - 707 social security benefits = 158 billion surplus. Entitlements are not causing the deficit.

[NHSparky]

865 social security revenue - 707 social security benefits = 158 billion surplus. Entitlements are not causing the deficit.

Newsflash, noob.  When SS was formed, you had about a 70 percent chance of NOT seeing the age of 65.  Additionally, we had 8 people working for every 1 drawing SS.

Fast forward to today.  Now you have about a 70-75 percent chance of seeing 65, and we have 2.5 people working for every 1 drawing SS.  By 2025, it'll be under 2 workers for each recipient.

See a problem here?

Additionally, the "Social Insurance Tax" you point out covers SS, Medicare, etc.  Now consider that entitlement spending (SS, Medicare/Medicaid, UEI) adds up to $1.984 TRILLION.  That's a bit over a $1.1 T shortfall.

NOW do you see the problem?

[formerlurker]

865 social security revenue - 707 social security benefits = 158 billion surplus. Entitlements are not causing the deficit.

You forgot medicare, medicaid and unemployment.