GOVERNMENT SPENDING - Home - House Budget...
Transcript of GOVERNMENT SPENDING - Home - House Budget...
GOVERNMENT SPENDING Spending as a Share of the Economy
Source: CBO
17%
18%
19%
20%
21%
22%
23%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Path to Prosperity Current Path
2
TOTAL SPENDING Spending as a Share of the Economy
%
5%
10%
15%
20%
25%
30%
35%
1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040
Historical Path to Prosperity Alternative Fiscal Scenario
Source: OMB/CBO
A BALANCED BUDGET Federal Deficit/Surplus in 2024 (in Billions of Dollars)
-500
-450
-400
-350
-300
-250
-200
-150
-100
-50
0
50
President's Budget Path to Prosperity
Surplus $5 Billion
The President’s budget never
balances—ever.
Deficit $434 Billion
Source: CBO/OMB
%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040
WORLD WAR II
CURRENT PATH
PATH TO PROSPERITY
4
A CHOICE OF TWO FUTURES U.S. Debt Held by Public as a Share of the Economy
Source: OMB/CBO
45%
49%
6%
1962 Non-Defense Defense Net Interest
75%
18%
6%
2013
DEFENSE SPENDING IS A DECLINING SHARE OF FEDERAL SPENDING
76%
9%
14%
2024 (Current Policy)
Ten years from now, defense will fall below 10 percent of the federal budget.
Source: OMB/CBO
HIGHER RATES DON’T MEAN HIGHER REVENUE As a Share of the Economy
Source: OMB/Tax Foundation
%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Top Income Bracket Total Revenue as Percent of GDP Tax Revenue as Percent of GDP
WHO OWNS OUR DEBT? Debt held by Public, 1970-2013
Source: Department of Treasury
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
1941 1951 1961 1971 1981 1991 2001 2011 2021 2031 2041
WORLD WAR II
CURRENT PATH
CRUSHING BURDEN OF DEBT U.S. Debt Held by Public as a Share of the Economy
Source: OMB/CBO
Medicaid & Other Health
Medicare
Social Security
Net Interest
0%
5%
10%
15%
20%
25%
30%
Revenues
WHAT DRIVES OUR DEBT? Government Spending as a Share of the Economy
Source: CBO
Other Mandatory $467
Non-Defense Discretionary
$576
Defense $625
Social Security $808
Medicare $492
Medicaid $265
Interest $221 AUTOPILOT SPENDING
DISCRETIONARY SPENDING
Source: CBO
TOTAL SPENDING IN FY2013 = $3.45 TRILLION
SPENDING IS THE PROBLEM Historical/Projected Spending & Revenue as a Share of the Economy
Source: OMB/CBO
10%
15%
20%
25%
30%
35%
40% Historical & Projected Spending
Historical & Projected Revenue
FAMILY BUDGET VS. FEDERAL BUDGET Average annual growth of median income and government spending under
the President’s budget, 2014-2024
Source: WSJ economic forecasting survey, October 2011/OMB
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
Family Budget Federal Budget