BusinessDaily.eu – Mikkel Roland Egesberg – Below we take a look at the US Federal outlays, first in 2000 and then in 2012:
As you can see “social security” is the biggest US Federal outlay, gone up from 409 billion USD in year 2000 to 779 billion in 2012, but with a falling share from 23% of the outlays in 2000, down to 21% in 2012. “Social security” is a factor that is going to put pressure on the US federal spendings in the future, because of the US demografic development…”Social security” is a “Pay-As-You-Go system, meaning you pay for it as the costs occur, no money is set aside to it like saving for a private pension. Right now the baby boomers contribute to the US federal income, but as they retire, they will put a huge pressure on the federal outlays instead. In 1942 there were 42 workers per retiree, right now there are 3 workers per retiree, and in 2035 there will be 2.
The second largest outlay is “Defence”, gone up from 16% to 19% in the same period – this is one of the posts that can be expected to be cut in the future, when the US debt crisis becomes more apparent in the US public. “Income security” is up by 1 percentage point, from 14% of total outlays to 15%. “Medicare” and “Healt” has gone from a total of 20% to 23%, and these two posts can also be expected to rise much in the future…The rest of the posts speak for themself, but this article will be update with income too ASAP.