Fed Gov't Spending Not Sustainable
Originally published by: Wells Fargo — September 14, 2012
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What is the primary role and scale of federal government spending?
During the current campaign season, this is indeed the core of the active debate between the political parties. Current federal spending policy spans a wide variety of programs from providing assistance to state and local governments, to funding education, defense and infrastructure to entitlement programs such as Medicare, Medicaid and Social Security. Changing demographics along with increased medical costs have brought into question the sustainability of federal entitlement programs.
If left unchanged, according to current CBO estimates, an increasing share of federal spending will be consumed by entitlement programs and thus offsetting spending for many other government programs.
In this, the second of three primers on the U.S. fiscal situation, we focus on spending by the federal government in the United States by looking at the composition of current spending and estimates of future spending. Click on the pdf link below to view the full report. Click here to view the first primer in this series on Federal Spending.