Federal Revenue and Spending as Percent of GDP
Source: Peter Orszag, CBO, 6/17/08 (h/t Walton Francis).
The above figure is similar to the one I posted before (click to enlarge). The difference is that this one has a revenue projection line. See how we could easily accommodate Social Security if only Medicare and Medicaid spending didn’t blow up?
Naturally, this projection from 2008 is slightly different in detail than one that would be made today. But the qualitative story is the same. How are we going to pay for all that federal health spending above revenue? Tax increase anyone? More debt? I don’t think so.
