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Take 1965 and 2006 as comparison points: http://federal-budget.findthedata.org/compare/67-109/1965-vs...

See also: http://useconomy.about.com/od/usfederalbudget/p/FY-2006-Fede... http://www.ssa.gov/history/percent.html

Expenditures in 2006 were about 20% of GDP versus 17% of GDP in 1965. In 2006, social security accounted for 20.5% of the budget, versus 14.8% in 1965. That's 4.1% of GDP versus 2.5% of GDP. In 2006, medicare was 12.2% of the budget. In 1965, Medicare didn't exist (it was created that year). That's 2.5% of GDP versus 0% of GDP.

Net of social security and medicare, total federal expenditures in 1965 were 14.5% of GDP, and in 2006 they were 13.4% of GDP. At least at the federal level, the proportion of GDP spent on things other than the care of the elderly shrunk slightly over 40 years. Indeed, this is probably an under-estimate, when you allocate the percentage of medicaid, the NHS budget, the DHHS budget, etc, spent providing care for the elderly, researching diseases that primarily effect the elderly, etc.




That's the story at every level of government - entitlements crowding out public goods. California has a similar problem with public pensions.


It's the story for a simple reason: the American population is getting old and retiring.


Thanks.




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