THE WORLD OF BUDGET SPIN
Seems like almost every day you can tune in to round the clock news and see some sweet young thing or some grey haired man with an authoritative voice slamming the Obama budget. Today Jessica Yellin of CNN was knocking the fact that the Obama budget didn't address the real causes of the National Debt, such as "Entitlement" and she went on to say Social Security , Medicare, Medicaid, and Welfare. She failed to mention that none was the truly heavy hitters, such as the Wars, the National Debt Interest, and the Unemployed.
An over $3 Trillion dollar budget and skyrocketing debt caused by the Liberal Agenda, they say. Yes the spin was thoroughly trashing Obama and you could tell she didn't have a clue. I think you all know what I mean, a 24/7 that what is driving America into the mammoth debt hole is those damned "Entitlements" but never spoken is "War, Debt Interest, Unemployed, or Federal pensions."
Something else not mentioned is that the first three of those entitlements mentioned above actually pay more into the General Fund than what is pulled from the Treasury to pay benefits. Yes you read it correctly. Just step back and take a deep breath and observe these verifiable facts:
Collections of Social Security payroll taxes and Medicare payroll taxes plus the Costs that Medicare has to pay in monthly premiums collect about $270 Billion more each year than the total benefits paid out. That $270 Billion also includes the benefits paid for Medicaid ( a program free to the recipients). And this overpayment has been going on for years. What does that mean? Doesn't it mean that they have been paying their own way, and not increasing the debt or deficit?
Well first of all, it means that those entitlements do not increase the debt, they actually could be used to decrease the debt. But you can bet your last nickel they are not. Did you realize that the cost of Welfare is mostly borne by the States and that money paid by the States does not impact the National Debt whatsoever? Only the amount not paid by the states impacts the National Debt and the Deficit. The annual cost of all Welfare is about $360 Billion yearly, of which the States pay the majority.
So if I say the "Entitlements are not the problem, then what is? But before I get to that - do you know how Veterans Benefits are carried in the Budget? They are carried as welfare. Veterans Benefits considered as Welfare, what an insult to our defenders of the country. But on to the real drivers of debt and deficits in our country - that I claim are almost never mentioned.