Another look at the train wreck

Austin Frakt

September 18, 2010

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.

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Austin Frakt

Austin Frakt, PhD, is co-Editor-in-Chief of The Incidental Economist. His day job is Associate Director of the Partnered Evidence-based Policy Resource Center at the Boston VA Healthcare System, U.S. Department of Veterans Affairs. He is also a Professor with the Department of Health Law, Policy and Management at the Boston University’s School of Public Health, a Principal Research Scientist with the Department of Health Policy and Management at the Harvard T.H. Chan School of Public Health, and Editor-in-Chief of the journal Health Services Research.

Another look at the train wreck

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Austin Frakt

The Incidental Economist

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