Wednesday, March 20, 2013

Picture of the Day

Thinking things through, it seems odd that Democrats are the ones fighting against entitlement reform and Republicans the only ones pushing it.  If you accept that tax receipts are limited as a percent of the economy, no matter what tax policy you adopt (see Hauser's Law chart), then our current entitlement structure will eventually crush the ability of the feds to spend on anything but entitlements.  Meanwhile, Republicans keep proposing reforms which might actually save the rest of the federal government.  Go figure.  The Heritage Foundation has another cool graphic to illustrate these ideas differently:

I don't believe this picture accurately portrays the acceleration of the net interest that will eventually occur, since artificially low interests are not indefinitely sustainable.   The real issue is that the federal government is going to quickly become unaffordable.