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The Folly of the 2006 Budget, Using Gov Graphs and Callouts

 

Rounded Rectangular Callout: Inflation is 3.2 %, so what kind of "strong economic growth" is 3.4%? This is a bar chart titled, "Strong Real GDP Growth Continues." The bars vary in value over the years 2000—2011. GDP for 2005 is an estimated value. In 2000, GDP was 3.7 percent; 0.8 percent in 2001; 1.6 percent in 2002; 2.7 percent in 2003; 4.2 percent in 2004; and an estimated 3.6 percent in 2005. The projected values are listed for the years 2006 through 2011. In 2006, the projected GDP is 3.4 percent; 3.3 percent in both 2007 and 2008; and 3.1 percent for 2009 through 2011.

 The Pending Disaster of Social Security Debt - Government Document and Graphs

 


This is a bar chart entitled, "Current Trends are not Sustainable." This chart shows a general rise in the percentage of GDP for Mandatory and Discretionary spending as well as net interest from 1970 to 2070. Mandatory spending has generally increased over time, though there was a level period of change from 1975–2000. Net interest has also increased from 1970 to 2070 with a larger prospective percentage increase from 2040–2070. Discretionary spending has decreased from 1970–2070 with prospective percentages of GDP leveling off after 2020. Total revenues have held fairly constant from 1970 to 1995. They peaked in 2000 and declined slightly until 2005. They are expected to hold steady through 2070.

"Social Security

Rounded Rectangular Callout: This is what happens when family declines and people don't have children.     Social Security was designed to be a self-financing program, in which current workers pay taxes to support benefits received by current retirees. In the early years of the program, there were more than 16 workers for every beneficiary, which allowed the program to be financed with a very low payroll tax rate. Currently, there are 3.3 workers for every beneficiary, and a much higher tax rate."

 

 

This is a line chart titled, "Fewer Workers Will Soon Support More Retirees." This chart measures the amount of Social Security covered workers per beneficiary from the years 1980 to 2080. Between 1980 and 1990 the number of Social Security covered workers per beneficiary slightly rose and then leveled off between 1990 and 2000. There was another increase in 1998 that lasted until 2001. The number of Social Security covered workers per beneficiary then declines drastically after this period. This chart estimates that the first deficit crash will occur between 2010 and 2020. The chart also projects that that in 2040 the trust fund will be exhausted.

 

"As the baby boom generation retires, the ratio of workers to beneficiaries will shrink further, to an estimated 2.9 workers in 2015 and 2.2 workers in 2030. As a result, starting in 2017, Social Security will collect less in dedicated taxes than it pays out in benefits, creating a gap that grows progressively wider over time. By 2030, revenues will be sufficient to finance only 79 percent of promised benefits, falling to 68 percent by 2080."