Everything You Need to Know about America’s Future Entitlement Crisis | International Liberty


  1. Entitlements (budget geeks sometimes use the term “mandatory
    spending”) are programs that automatically give people money if they
    meet certain requirements (such as reaching a certain age or having
    income below a certain level).
  2. Since these programs automatically give people money, they are not part of the annual appropriations process
    (the “discretionary spending” parts of the budget that are determined on a yearly basis).
  3. Some entitlement programs are “means tested” and designed to funnel
    money to low-income individuals. This type of spending is sometimes
    referred to as “unearned benefits.”
  4. Some entitlement programs are “social insurance” since people pay
    specific tax in exchange for specific benefits. This type of spending is
    sometimes referred to as “earned benefits” (though in many cases recipient receive much more than they paid).

By the way, there’s one additional thing to understand…

5. Entitlement programs are a slow-motion fiscal train wreck.

…by the early 1960s, two-thirds of all spending continued to require
approval by the House and Senate appropriations committees each year,
and less than a third was spent on entitlement programs. … By 2019,
nearly two-thirds of all spending in the budget was for entitlement
programs, and less than a third went to annually appropriated accounts.

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