Atlantic Business Channel

« Investors: The Euro's Going Down | Main | Apple Says it Will Lower Prices if iPad Doesn't Sell »

Feb 8 2010, 3:26 pm

This Is What Our Mandatory Spending Looks Like

Sometimes you need a picture to understand a policy. So when I say things like "It's hard to make meaningful spending cuts if you don't touch mandatory spending," that doesn't mean much if we can't visualize how much of the budget is mandatory spending -- that is, spending mandated by existing law.

This is what it means: the New York Times has created an awesome interactive Flash graph of the president's 2011 budget -- with a button that makes all the mandatory spending disappear so you can see exactly how much Obama's spending freeze is leaving warm.

Here's a 30,000-foot view of the budget:

gedbudgetbox.jpgAnd here's the budget if you white-out mandatory spending, which includes Social Security (bottom left box), Medicare and Medicaid (top middle to right), and income security programs like food stamps and unemployment insurance. National security, the top left box, is also almost entirely exempt from the freeze.

budgetboxnonmandatory.jpg

If you're thinking about curbing spending, don't judge outlays by which box is biggest today. Also look at the long-term trend, from the CBO. I suppose saying it for the 100th time doesn't make it any more true, but here it is: Our long-term fiscal crisis is a health care crisis, especially a Medicare crisis. That's one reason why I respect Rep. Paul Ryan for sticking out his neck and drawing up a plan to curb health care expenditures in the next twenty years, even if his method -- dramatically slow the growth in Medicare spending -- would be a blunt and unpopular pitch to the AARP.

570 socialsecuritymedicare.png

No Trackbacks

TrackBack URL for this entry:
http://business.theatlantic.com/mt-42/mt-tb.cgi/21373

Comments (1)

Derek - "It's hard to make meaningful spending cuts if you don't touch mandatory spending,"

Let's just keep in mind that that the "mandatory" spending reflects previous congressional legislation.

That which the Government gives, the Government can take away.

Post a comment