Future Expenses: Financing the Spending of the Past

by Ashley Muchow Using data from the CBO’s 2010 Long-Term Budget Outlook, Mercatus Center’s Veronique de Rugy has charted the long-term path of federal spending on three of its largest components–Social Security, Medicare and Medicaid, and interest on federal debt. Here’s the kicker: interest costs, if they remain on their current path, are set to become the majority of...

by Ashley Muchow

Using data from the CBO’s 2010 Long-Term Budget Outlook, Mercatus Center’s Veronique de Rugy has charted the long-term path of federal spending on three of its largest components–Social Security, Medicare and Medicaid, and interest on federal debt. Here’s the kicker: interest costs, if they remain on their current path, are set to become the majority of future federal spending. You got it–payments to finance spending of the past.