Balanced budget: a balanced budget is when revenues are equal to expenditures. This means that the government can not spend more than it takes in.
Federal entitlements: Government payments to groups of people that are eligible and meet requirements.
An example of an entitlement program is Medicare. This makes it difficult because by the government providing this service, they are essentially hemorrhaging money. They're obligated to continue along with this program, which means that the government is in a slight hole. There's really no way to get out of providing medicare, because tax payers money goes towards this cause, so the service is expected.
A consequence is simply the fact that the longer the government continues with this charade, the more in debt they will be. More importantly, future generations, for example my generation, are forced to wonder whether or not there will be sufficient funds when it comes time for us to retire.
Projected revenue for 2012: $2.5 trillion
Expenditures: $3.8 trillion
Budget deficit: $1.3 trillion
(http://www.usgovernmentrevenue.com/federal_budget)
Current debt: $16,530,485,224,524
source: http://www.usdebtclock.org/
No comments:
Post a Comment