Romney will increase government spending.
So will Obama.
Lawrence Summers - America’s state will expand whoever wins
1. In the USA, 32% of federal government spending is on the care of the elderly.
Lawrence Summers - America’s state will expand whoever wins
1. In the USA, 32% of federal government spending is on the care of the elderly.
The number of 'elderly' is increasing fast.
The cost of medical treatment for the elderly is increasing fast.
"Since the early 1980s the price of hospital care and higher education has risen more than 100-fold relative to the price of televisions."
Mitt
Of course the US government could be sensible and (1) curb the pay of doctors (2) curb the profits of the drugs companies and (3) reduce the school leaving age.
Of course the US government could be sensible and (1) curb the pay of doctors (2) curb the profits of the drugs companies and (3) reduce the school leaving age.
But, how likely is that? Both Romney and Obama are on the side of the rich doctors and drugs companies.
Or, the government could drastically cut Social security, Medicare, Medicaid and free schooling, and, it could cut federal pension liabilities, and it could let infrastructure such as roads and power stations continue to decline.
That could be much too risky as the military and police might then join in riots.
2. The federal government's debt is rising and interest rates may soon rise.
The federal government's spending to service its debt may almost double by 2020.
Lawrence Summers - America’s state will expand whoever wins
3. The cost of "everything from cutting-edge scientific research to regulating banks" rises faster than overall inflation.
3. The cost of "everything from cutting-edge scientific research to regulating banks" rises faster than overall inflation.
4. The rich are finding new ways to avoid paying tax, and, "there is a steady decline in the fraction of tax returns that are audited."
So, if Romney wins, he will not find it easy to reduce government spending.
"Neither Romney nor Obama anticipate any changes to Social Security."
Romney and Ryan may get the individual states, rather than the government in Washington, to pay more towards 'welfare'.
What about military spending?
"Since 2001, acknowledged U.S. national defense spending has increased by almost 60 percent in real dollar terms to a level in 2007 of $553 billion...
"Yet, so gargantuan and labyrinthine are U.S. military expenditures that the above grossly understates their true magnitude, which reached $1 trillion in 2007."