Government Spending on Autopilot


Wednesday April 4th, 2012   •   Posted by Stephanie Freedman at 2:18pm PDT   •  

A recent article in the Huffington Post points out that our country is officially on spending autopilot.

What do I mean when I say the budget is “on autopilot”? Right now, vast swaths of government spending are classified as “mandatory.” That means certain programs are funded automatically. In other words, they are funded outside of the yearly congressional budget and appropriations process.

Most Americans don’t realize it, but more than half of federal spending falls into the mandatory spending category: think Social Security, Medicare and Medicaid. (To be exact, 56 percent of all federal spending was spent on mandatory spending during the government’s last fiscal year.) Meanwhile, as of last year, just over a third (37 percent) of the federal budget is categorized as “discretionary” spending. This is the part of the budget over which Congress has decision-making power through the yearly budget and appropriations process.

What is it going to take for Washington to take a closer look at what they consider mandatory?

Read Full Article Here 

Featured Image:
The Economist



Twitter Facebook Youtube RSS

Search


By linking to Amazon.com from this page, The Independent Institute earns referral fees of 4% to 15% from whatever you buy. Bookmark the above link and you can support the Institute when you do your normal shopping!

sem
TIR

Categories

April 2012
S M T W T F S
« Mar   May »
1234567
891011121314
15161718192021
22232425262728
2930