Wednesday, April 23, 2014

Government Spending on Autopilot : No One Stands Guard

Each year, it seems, the federal government grows more irresponsible and out of control. The puzzling aspect of all this is why our elected leaders are sitting on their collective hands?

For government to survive and serve, it demands trust from the population and without trust there can only be chaos which breeds failure. And what do we have now in Washington?

Mandatory Spending on the Rise
Source: Nick Gillespie, "Our Mindless Government Is Heading for a Spending Disaster," Daily Beast, April 10, 2014.

April 22, 2014

There is no need for "mandatory spending" classifications, says Nick Gillespie, editor in chief of Reason.com.

There are two spending classifications -- mandatory and discretionary. Those things classified as mandatory spending are Medicare, Medicaid, Social Security, and the like. Discretionary spending, into which the defense budget falls, requires a funding vote each year.
  • In 1962, mandatory spending was less than 30 percent of overall federal spending.
  • But last year, a whopping 60 percent of federal spending was "mandatory."
  • And within 10 years, that number should reach 70 percent.
But calling it "mandatory" spending is a misnomer, purely the creation of lawmakers in Washington. "Medicare isn't some fact of nature but the creation of politicians who can change or abolish it at any time," says Gillespie. However, by calling it mandatory spending, lawmakers do not have to take votes each year to fund these programs, and they can deal out money to voters without taking fiscal responsibility for the outlays.

Neither Republicans nor Democrats have shown true interest in entitlement reform. If all mandatory spending were reclassified as discretionary spending, lawmakers would be required to vote each year to fund these programs.
 

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