by Ryan Streeter on January 13, 2012. Follow Ryan on Twitter.
More from the “we sit here like frogs in a warming kettle” department:
- “Medicare spending alone will go from $562.8 billion in 2011 to $970 billion in 2021…This means Medicare will constitute over one-sixth of federal spending in 2021. It also means that while our irresponsible federal budget will grow by 59%, Medicare spending will grow by 72% — and this is before the retirement of the Baby Boomers has its full impact.” (emphasis added)
- If interest rates stay at their historically low rates, “CBO’s spending estimate implies interest payments will be $777.4 billion in 2021, or about 75% larger than this year’s interest payments. Now imagine what interest payments will look like if rates return to their July 2005 (mid-housing-boom) level of 4.653%! They would be $1.21 trillion per year… This will be 26% of expected spending in 2021, compared to approximately 13% this year.” (emphasis added)
This is from an important short article today by Bill Beach and Dustin Siggins, who have been on a two-man assault for awhile now on the federal debt on behalf of the Debt-Paying Generation – today’s younger generation who will bear the burden tomorrow for today’s profligate federal spending.