The One Chart You Need to See…

“Here’s The Only Chart You Need To See To Understand Why The US Is Screwed.” You’ve seen the chart, Snerdley? This all from Saturday. “We’re still working our way through Kleiner Perkins’ partner Mary Meeker’s excellent analysis of the financial condition of the United States. We’ll be breaking out some key sections in the next few days. In the meantime, here’s the one chart you need to see to understand why the US is screwed. This is the ‘income statement’ of the United States in 2010. ‘Revenue’ is on the left. ‘Expenses’ are on the right. Note a few things… First, ‘Revenue’ is tiny relative to ‘Expenses.’ Second, most of the expense is entitlement programs, not defense, education, or any of the other line items that most budget crusaders normally howl about. Third, as horrifying as these charts are, they don’t even show the trends of these two pies: The ‘expense’ pie is growing like gangbusters, driven by the explosive growth of the entitlement programs that no one in government even has the balls to talk about. ‘Revenue’ is barely growing at all.” And what is obvious as well when you look at this is that there’s no way to solely grow our way out of this. There’s gonna have to be major spending cuts in entitlements.

So what I’m gonna do here, folks, I just turned the Dittocam off while I zoom in. I’m not gonna go through the process of having you watch me zoom in. But I’m gonna zoom in on this. All right. If you’re watching on the Dittocam, here we go. As you’re looking at this, the chart on the right is expenses. The pie on the right is expenses. The pie on the left is income. Now, look at that pie on the right with the blue, orange, and red slices. Those are the entitlements: Medicare, Medicaid, Social Security. Expenses. The others are defense, education, a bunch of other stuff thrown in there. The point being made is that the big pie is continuing to grow. These expenses are continuing to grow, grow, grow. The income on the left, pretty soon the comparison’s gonna be the size of the earth to the moon, as it keeps going.



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