What Actually Strains The Federal Budget? | The Odyssey Online
Start writing a post
Politics and Activism

What Actually Strains The Federal Budget?

Hint: it's not the military

169
What Actually Strains The Federal Budget?
UNICEF USA

As the deficits that the government has created grow, many questions are being raised as to what the main driving force is? What does the government sink most of its funding into? Now, most arguments from the left is that one of the largest contributors to the deficit is our military budget citing that we spend more money on defense than the next three closest countries combined.

This point is actually true. We do spend significantly more than any other country on our military defense budget which accounts for about 57% of our discretionary spending. But, that's just it. Discretionary spending. What most people fail to realize is that the federal budget is broken up into two categories. There is discretionary spending and mandatory spending.

Mandatory spending is all spending by the federal government that is mandated by law i.e. the Affordable Care Act. Discretionary spending is all spending made by the government based on where they believe funding should go. So it is true that the government spends a significant amount of discretionary spending on defense, but that is not what makes up the majority of government spending. One must take into account the mandatory spending aspect.

So what makes up most of the mandatory spending? The answer is entitlement programs. These are better known as Social Security, Medicare and Medicaid. According to research done by Politifact in 2015, pie charts constructed and spread over social media claimed that we only spend 1% of the budget on things like food stamps in comparison to that 57% defense spending. Again, this is true but incredibly deceiving as those pie charts only take into account discretionary spending which only makes up about one-third of all federal spending.

If you include mandatory spending, the defense budget drops to about 16% of the entire federal budget. To highlight just how small this is in comparison to the entitlement programs, Social Security alone takes up about 25% of the budget. Medicare and Medicaid contribute 28% of the budget. This means that combined all entitlement programs make up 53% of the entire federal budget.

According to the House Budget Committee for the fiscal year of 2018, the cost of maintaining these entitlement programs has risen by 6.7 billion from what it was in 2017. The budget digest continues by acknowledging the possibility of insolvency by the year 2025 rather than the projected 2029. By that point, it is estimated that the government will only be able to cover about 88% of all its promised benefits.

This graph depicts the problems of these entitlement plans. The cost of maintaining these programs continually rises and will eventually reach the point where the output from the government cannot keep up due to the low input from the citizens utilizing the service. Not that the input from the citizens ever matched the output of the government with regards to the Affordable Care Act.

So in conclusion, the majority of all federal spending is not from defense spending,but in fact comes from entitlement programs created under the Affordable Care Act. This is what drives the majority of debt in the United States as it provides a significant amount of benefits with negligible input from the citizens using the programs. These programs are not sustainable and will continue to increase the federal debt until they ultimately fail and collapse which could then trigger economic fallout.

Unfortunately, we do not have any better alternatives at this moment to aid those who are in dire need of healthcare. This should and must be top priority for the Trump administration if they want to focus on lowering deficits (not that they have been keen to do so). A more comprehensive and sustainable healthcare system must be implemented soon in order combat the blunders of the prior administration.

Report this Content
This article has not been reviewed by Odyssey HQ and solely reflects the ideas and opinions of the creator.
campus
CampusExplorer

New year, new semester, not the same old thing. This semester will be a semester to redeem all the mistakes made in the previous five months.

1. I will wake up (sorta) on time for class.

Let's face it, last semester you woke up with enough time to brush your teeth and get to class and even then you were about 10 minutes late and rollin' in with some pretty unfortunate bed head. This semester we will set our alarms, wake up with time to get ready, and get to class on time!

Keep Reading...Show less
Student Life

The 5 Painfully True Stages Of Camping Out At The Library

For those long nights that turn into mornings when the struggle is real.

1563
woman reading a book while sitting on black leather 3-seat couch
Photo by Seven Shooter on Unsplash

And so it begins.

1. Walk in motivated and ready to rock

Camping out at the library is not for the faint of heart. You need to go in as a warrior. You usually have brought supplies (laptop, chargers, and textbooks) and sustenance (water, snacks, and blanket/sweatpants) since the battle will be for an undetermined length of time. Perhaps it is one assignment or perhaps it's four. You are motivated and prepared; you don’t doubt the assignment(s) will take time, but you know it couldn’t be that long.

Keep Reading...Show less
Student Life

The 14 Stages Of The Last Week Of Class

You need sleep, but also have 13 things due in the span of 4 days.

1040
black marker on notebook

December... it's full of finals, due dates, Mariah Carey, and the holidays. It's the worst time of the year, but the best because after finals, you get to not think about classes for a month and catch up on all the sleep you lost throughout the semester. But what's worse than finals week is the last week of classes, when all the due dates you've put off can no longer be put off anymore.

Keep Reading...Show less
Student Life

Top 20 Thoughts College Students Have During Finals

The ultimate list and gif guide to a college student's brain during finals.

252
winter

Thanksgiving break is over and Christmas is just around the corner and that means, for most college students, one hellish thing — finals week. It's the one time of year in which the library becomes over populated and mental breakdowns are most frequent. There is no way to avoid it or a cure for the pain that it brings. All we can do is hunker down with our books, order some Dominos, and pray that it will all be over soon. Luckily, we are not alone in this suffering. To prove it, here are just a few of the many deranged thoughts that go through a college student's mind during finals week.

Keep Reading...Show less
Student Life

28 Daily Thoughts of College Students

"I want to thank Google, Wikipedia, and whoever else invented copy and paste. Thank you."

1666
group of people sitting on bench near trees duting daytime

I know every college student has daily thoughts throughout their day. Whether you're walking on campus or attending class, we always have thoughts running a mile a minute through our heads. We may be wondering why we even showed up to class because we'd rather be sleeping, or when the professor announces that we have a test and you have an immediate panic attack.

Keep Reading...Show less

Subscribe to Our Newsletter

Facebook Comments