Entitlement Spending Will Nearly Double by 2050
President Obama has called Rep. Paul Ryan’s budget “an attempt to impose a radical vision on our country,” but as this week’s chart illustrates, if something radical doesn’t happen, entitlement spending will nearly double by 2050. The amount of spending on Medicare, Medicaid, Social Security and Obamacare subsidies will soar over the next 38 years, leaving future generations with an alarming debt burden.
Congressional Budget Office predictions show that in 2010 entitlement spending attributes 10.3 percent of GDP, then jumps to 19 percent of GDP by 2050. David John, Heritage’s senior research fellow in retirement Security and financial institutions, explains why in the context of last week’s Social Security trustees report:
The April 23 report shows that all people who receive Social Security benefits face about a 25 percent benefit cut as soon as 2033—three years earlier than predicted in last year’s report. The program’s long-term deficit is now larger than it was before the 1983 reforms. In order to pay all of its promised benefits, Social Security would require massive annual injections of general revenue tax money in addition to what the program receives from payroll taxes.