Amid all the talk of the approaching fiscal cliff in Washington, most of the focus coming from pundits is focused on who will (or should) receive the blame. But when discussing the situation, it is vital to understand just where the federal dollars go in order to understand what needs to be done.
This short 5-minute video created by a retired accountant clearly and simply demonstrates what may be a shocking revelation to some: the federal government could shut down all of its “discretionary” operations and still spend more than the revenue they take in.
The video uses the President’s own budget figures and shows how “mandatory” programs (i.e. mostly entitement programs like Social Security & Medicare along with other promised benefits like Medicaid and pensions for federal retirees) require more outlays alone than the entire $2.5 trillion in federal revenues. In short, past politicians have promised way too many goodies in order to buy the votes of large voting blocs. The problem with making so many promises to so many, of course, is that eventually you run out of other people’s money.
To see the video, click here.