Be Scared, VERY SCARED!

Check out this graph of federal debt held by the public as a percentage of the gross domestic product (GDP)

The Congressional Budget Office (CBO) is a non-partisan government agency that provides "objective, insightful, timely, and clearly presented information about budgetary and economic issues." The current director is Douglas Elmendorf. He has just released a very sobering analysis of government spending on his blog site about the long-term federal budget outlook.

This analysis proves that federal government spending is unsustainable. The scary part is that this analysis does not include the huge, newly proposed, government take over of the energy and healthcare industries.

Here are some key quotes from the analysis:

"Measured relative to GDP, almost all of the projected growth in federal spending other than interest payments on the debt stems from the three largest entitlement programs—Medicare, Medicaid, and Social Security." (Notice liberals that defense spending is not the major federal expense, it is entitlement programs by far.)

"Thus, reducing overall government spending relative to what would occur under current fiscal policy would require fundamental changes in the trajectory of federal health spending." (I've got an idea, let's give healthcare to everyone and let the federal government pay for it.)

"Meanwhile, as depicted below, government spending on all activities other than Medicare, Medicaid, Social Security, and interest on federal debt—a broad category that includes national defense and a wide variety of domestic programs—is projected to decline or stay roughly stable as a share of GDP in future decades." (What, you mean defense spending isn't the problem?).

This is a classic example of the economic consequences of turning individual responsibility over to the government to create a nanny state.