Thursday, October 31, 2013
The Myth Of The Exploding Federal Government
Social Security spending has increased steadily over this period. Its share of federal spending in relation to GDP doubled from 2.5% in 1962 to 5% at present and it will continue to grow slowly due to an aging population.
We introduced Medicare in the Johnson Administration and it has grown to about 2.5% of federal spending and it will continue to grow as our population ages and as the prices that we pay for healthcare services continue to rise.
In conclusion, we are not faced with a problem of out of control spending by the federal government. The growth in federal spending has been driven primarily by Medicare spending.