The trillions of dollars in the federal budget add up to a bunch of zeroes, but it boils down to relatively simple math. According to this chart, 21% goes to Medicare, Medicaid, and the Children's Health Insurance Program, 20% of the budget goes to defense and international security assistance, 20% goes to social security; 13% goes to other safety net programs like unemployment insurance, 6% goes to interest on the federal debt, and the remaining 20% goes to investments like federal and veteran retiree benefits (7%), transportation infrastructure (3%), education (2%), science and medical research (2%), international programs (1%) and other programs (4%).
90% of the anger directed at Washington's "wasteful" spending is directed at less than 10% of the budget -- things like the Department of Education, international aid, and boondoggles like the "bridge to nowhere" in Alaska. People rely on unemployment insurance, social security, Medicare and Medicaid in ways we're only starting to understand, so those parts of the budget will only grow in coming years. Also, debt payments will go up. So, the responsible thing for the government to do is to look for savings in the areas where money can be saved, the biggest single chunk being defense spending. Some Republicans would say defense spending is sacrosanct, but it is probably an area where significant savings can be found. The only non-controversial spending cuts I can see in those percentages are perhaps the unnamed "other programs" -- and those are only non-controversial because I don't know what they are. Changes to social security and Medicare scare people, mostly because people rely on them for some sense of security as they approach old age. It's part of the deal we've made with the government -- we pay payroll taxes for most of our working lives in exchange for a share of the social security pie. It's really a shame that social security won't be around for my generation to enjoy, because it really is a pretty good deal. Similarly, the average person gets way more out of Medicare than they pay in through payroll taxes, so I don't think that program will make it to my generation, either.
That's why I think most of the anger over tax increases is misplaced. Why is Pres. Obama insisting on the wealthy paying more? Because that's where the money is, folks. Check out the graphic "viral video" below for information on wealth distribution that ought to make people think. If we really want to save Medicare and social security for future generations, we need more revenue as part of the equation. The payroll tax holiday that Pres. Obama allowed to expire this year was a stimulus program that was supposed to be short-term. Similarly, Pres. Bush's tax decreases were also supposed to be short-term, but the Republicans are insisting that they be put in place forever. And they just happen to benefit the richest Americans more than anyone else.
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