Originally Posted by Amnorix
Spending has been relatively flat the last four years, actually. That doesn't change the fact that it massively outpaces revenues and that it projects, without changes, to increase very rapidly in the coming years as entitlement programs groan under the weight of an aging population.
Those programs you mentioned -- the entitlement programs -- they eat the exact, stable chunk out of our GDP as much as eighty years from now, as projected. As a percentage of our GDP, it doesn't change.
Spending has stabilized. Revenue, as you mention, is the problem, as it petered out hard in 2009 and has been at historical lows the past decade. Part of that has been righted by a fiscal cliff deal. Part of it will be righted by the upcoming budget battle. And part of it will be righted by a collapsing unemployment rate.
All in all, hardly the stuff red alerts are made of...