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INSURANCE GROUP USA NEWS
Entitlement Nation
"Gross domestic
product" is a measure of the size of the US economy. Though
federal taxation (as a percent of GDP) has stayed relatively
stable, government spending (as a percent of GDP) has undergone
dramatic change, as can be seen in this chart.
The
black line traces economic commitment to the armed forces. After
peaking in World War II, the commitment plunged, rebounding
slightly and briefly for Korea, Vietnam, the late Cold War, and
today's Global War on Terrorism. The trend, however, is down. Now
look at the red line. It signifies economic emphasis on "payments
to individuals" --- entitlements such as Social Security,
Medicare, Medicaid, welfare, unemployment insurance, and the like.
This entitlements line has enjoyed a long, steady rise. The trend,
even today, is up.
In the 1940s, 1950s
and 1960s, the defense commitment reigned. The crossover point
came in 1971, and entitlements have ruled the 1970s, 1980s, 1990s,
and 2000s. Today, defense gets by on about four percent of GDP. By
contrast, entitlements take nearly 13 percent.
Follow the money, and
the true national priorities become glaringly apparent.
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