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In reply to the discussion: For anyone who doesn't believe entitlements + interest on the debt will crowd out all other spending [View all]leveymg
(36,418 posts)24. This contradicts the post you put up yesterday that shows interest isn't a major factor.
This from Nate Silver's 538 Blog you cribbed from yesterday: http://fivethirtyeight.blogs.nytimes.com/2013/01/16/what-is-driving-growth-in-government-spending/
Another surprise is how little we are paying in interest on the federal debt, even though the debt is growing larger and larger. Right now, interest payments make up only about 6 percent of the federal budget. In addition, they have been decreasing as a share of the gross domestic product: the federal government spent about 1.5 percent of gross domestic product in paying interest on its debt on 2011, down from a peak of 3.3 percent in 1991.
How is this possible? The reason is that although the government is borrowing a lot of money, it is doing so very cheaply because interest rates are low both over all and on government debt specifically. Were now spending less than 2 percent of the principal annually to service our debt, down from a peak of close to 7 percent in the early 1980s. Borrowing costs arent expected to remain this low forever, so this ratio is bound to increase some. Fortunately, much of the debt we have issued has relatively long maturities, meaning that we have locked in low rates. (This wont necessarily apply to future deficit spending: one of the consequences of failing to raise the debt ceiling would be a significant rise in borrowing costs, which would compound our debt problems later on.)
Which is it, a major threat to the economy or a small and declining burden as a percent of GNP? I DON'T THINK YOU KNOW.
The only thing you don't seem to be alarmed by is the growth in defense spending (more than 80 percent), which has grown twice as fast over the last decade as major social programs. WHAT'S YOUR FRACKING AGENDA?
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For anyone who doesn't believe entitlements + interest on the debt will crowd out all other spending [View all]
dkf
Apr 2013
OP
If you take the POV that entitlements are inviolate then everything else gets cut first.
dkf
Apr 2013
#2
No, if you decreased defense and non entitlement spending, you'd have a primary surplus
muriel_volestrangler
Apr 2013
#23
In the OECD, only Mexico and Chile collect a lower percent of GDP in taxes than us.
dawg
Apr 2013
#40
SS is self funded and doesn't cost the Fed Gov anything, Nor did it have anything to do with the
sabrina 1
Apr 2013
#8
No matter how many times that myth gets repeated, lowering SS payments would decrease the deficit
Recursion
Apr 2013
#13
I'm all for dropping the full SS age to 55, at least until unemployment drops below X%
Recursion
Apr 2013
#18
How? It does not claim it is part of the budget and says nothing to disagree with me
Dragonfli
Apr 2013
#84
No, just your misrepresentation of one of their projections, try reading the post
Dragonfli
Apr 2013
#86
Repeating a lie multiple times does not make it true, the treasury handles their money, so what?
Dragonfli
Apr 2013
#91
SS can not be funded out of General Revenue BY LAW. The myth is that SS has anything
Vincardog
Apr 2013
#80
The money comes from the trust fund's surplus when payments out exceed FICA in
Dragonfli
Apr 2013
#65
It's a lie. The SS trust fund is not "one area of the budget", you are talking about
Dragonfli
Apr 2013
#75
So is your concept of government that you can't trust future congresses?
muriel_volestrangler
Apr 2013
#25
I am not disputing the fact that the MyGovCost website is spinning data to support its purposes...
DreamGypsy
Apr 2013
#57
Social Security is paid for with the payroll tax, that should not be included.
AnnieK401
Apr 2013
#10
Social security payments do not contribute to the deficit and the debt.
freedom fighter jh
Apr 2013
#39
Why not pass the JObs Act that Obama proposed to get that tax revenue rolling in again?
CTyankee
Apr 2013
#12
I've been reading Krugman since he started his NYT column over 10 years ago. He has
CTyankee
Apr 2013
#73
This contradicts the post you put up yesterday that shows interest isn't a major factor.
leveymg
Apr 2013
#24
Oh, just come out and say you think Social Security should be done away with, and get it over with.
djean111
Apr 2013
#26
Umm, Cost of Living Increases are designed so that benefits can be paid in constant dollars
Tom Rinaldo
Apr 2013
#43
Yes he has, and the near unamimous concensus of independent economic experts is
Tom Rinaldo
Apr 2013
#52
Seniors today certainly have a higher standard of living than seniors 10, 20, or 30 years ago
Recursion
Apr 2013
#54
For anyone who doesn't believe that tax fraud and offshore banking, along with defense and ..
ananda
Apr 2013
#31
Don't forget that thr Social Security spending assumes the big benefit cut which will occur
bornskeptic
Apr 2013
#77
Gee dawg, your chart makes it look like our low tax philosophy is the entirety of our problem.
dawg
Apr 2013
#47
OK, but isn't about 2/3 of that interest payable to the Social Security Administration?
1-Old-Man
Apr 2013
#61