You are hearing ad nauseam in the discussion of the fiscal cliff about entitlement reform and tax reform (tax increases). What you’re not going to hear hardly anyone talking about is Executive branch reform. Why? I don’t know, but it is very disturbing. The Simpson-Bowles commission didn’t make one recommendation for cutting the Executive branch. Not one. Cuts from Social Security, Medicare and the Military yes, but not the Executive branch.
And why should they be talking about Executive branch reform (cuts)? Because the Executive branch is much bigger than you think.
So just how big is it? Well, let’s go back to 2009 spending and we see that the Executive branch was nearly as big ($1.21 trillion) as Medicare, Medicaid and SS combined ($1.27 trillion) . We haven’t had an official budget since then, so our government has just been extending these proportions or at least that’s what they tell us.
When you search the web for actual spending you’ll continually find the budget represented as a % of GDP. The hard numbers are too scary to print. But you can find some pie charts that show the Executive branch in 2011 at 33% and SS, Medicare and Medicaid at 43% of the total budget. What they don’t tell you is that the executive branch administers these programs and that cost is paid for out of the plans’ funds. Administrative costs are as follows: SS 1%, Medicare 3% and Medicaid 3%. This puts the true Executive branch cost at about 34.5% of the budget and entitlement payouts at about 41.5%.
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