retirement planning services since 1987

Blog

What about the Deficit?

December 5, 2016

The election is over and the candidates covered a multitude of topics, both serious and nonsensical. But one thing they didn’t discuss was our current deficit. In 2016, we spent nearly $4 trillion. The bulk of it falls into five categories.

First is health care, which accounts for $1.1 trillion. Of that, Medicare, Medicaid, and the Children’s Health Insurance Plan total $955 billion. The rest is the Affordable Care Act – aka Obamacare.

Social Security is next at $944 billion. Combine that with health care and it comprises half of the overall budget! Defending our nation costs $615 billion. About 40 percent of that is for ongoing operations and new equipment. “Entitlement” Programs that help protect seniors and the poor total $508 billion, with nearly 80 percent of it dedicated to seniors.

And lastly, there’s interest on our debt. The budget called for $283 billion towards debt. But we actually spent $432 billion on interest payments

And make no mistake – these numbers will be larger in 2017. They almost always grow. How can they not? We have $20 trillion in debt on the books and it’s growing. All in all, it’s not a pretty picture. By the 2021 inauguration we could be near $30 trillion in national debt!

To me, it doesn’t seem to be a sustainable model. Eventually these debt payments will come due. Plus, interest rates have to go up, don’t they?

Share this post

Share on facebook
Share on twitter
Share on linkedin
covid-19 update

We want to let you know we’re keeping things clean and being cautious.

We have adopted the following procedures for all meetings at our office, including the appointment we have scheduled with you:

Send us a message and receive a complimentary follow-up call from one of our team members!
X
X