USA Inc. Next 80 Years (1931-2010) = Era of Expansion
Defense Down to 20% of Spending; Social Security + Healthcare Up to 44% in F2010
USA Inc.’s Budget Outlays For the Next 78 Years (1931-2010)
1931 1940 _.. 1950. 1960 _._ 1970 _. 1980 __ 1990 _, 2000 __. 2010
Total Federal Government Outlays ($B) $4 $9 $43 $92 $196 $591 $1,253 $1,789 $3,456 Defense $1 $2 $14 $48 $82 $134 $299 $294 $694 % of Total Outlays 23% 20% 32% 52% 42% 23% 24% 16% 20% Interest on the Public Debt $1 $1 $5 $7 $14 $53 $184 $223 $196 % of Total Outlays 17% 11% 11% 8% 7% 9% 15% 12% 6% Retirement & Disability Insurance $0 $0 $1 $12 $30 $119 $249 $409 $707 % of Total Outlays 0% 0% 2% 13% 15% 20% 20% 23% 20% Healthcare $0 $0 $0 $1 $12 $55 $156 $352 $821 % of Total Outlays 0% 1% 1% 1% 6% 9% 12% 20% 24% Physical Resources (Energy / Housing...) $0 $2 $4 $8 $16 $66 $126 $85 $89 % of Total Outlays 5% 26% 9% 9% 8% 11% 10% 5% 3% Other $2 $4 $19 $17 $42 $165 $239 $426 $950 % of Total Outlays 55% 42% 45% 18% 21% 28% 19% 24% 27%
Note: Data is rounded and not adjusted for inflation. Physical resources include energy, natural resources, commerce & housing credit, transportation infrastructure, community and regional development. Other includes international affairs, agriculture, administration of justice, general government, education and veterans’ benefits and services. Source: 1931-1939 data per Census Bureau, “Historical Statistics of the United States, Colonial Times to 1970.” 1940-
K P 2010 data per White House OMB. (@)E) www.kpcb.com USA Inc. | High Level Thoughts 41
USA Inc. “Business Line” Extensions: 1930 — 2010
“Business Line” F2010 Agencies / Programs
Extensions Expense ($B) Created (Year) Gaals
Heparimentier Emsray Establish the Strategic Petroleum Reserve /
Energy Policy $12 (1977) mandate automobile fuel efficiency standards & temporary oil price control F Community ; Community 13 Beelamiiand veh Provide federal grants to local governments for
Development projects like parking lots / museums / street repairs
Grant* (1974)
4 oa Provide medical insurance program for the elderly Medicare / Medicaid . : Healthcare 724 (Medicare) and welfare program for low-income (1965) : —_ population (Medicaid)
Federal Subsidies for Provide federal subsidies for student loans / school Education 97 K-12 & Higher libraries / teacher training / research / textbooks and Education (1965) other items.
Federal Housing Reduce cost of mortgages and spur home building / Housing 36 Administration (1937) | purchasing by offering federal mortgage insurance / Fannie Mae (1938) and create secondary market for mortgage loans.
Aid ta Dependent Provide cash assistance to low-income families with
Welfare 28 Children (1935) children. Replaced by Temiparary Assistance for Needy Families program in 1996 Retirement 584** Social Security (1935) Provide retirement income to the elderly TOTAL $1.5 Trillion Or 10% of F2010 GDP / 69% of USA Inc.’s Revenue / 43 of Expense
Note: *Community Development Block Grant was an effort fo consolidate various pre-existing categorical community developmen programs that started with "urban renewal" in the 1950's. **Social Security’s F2010 expense excludes ~$123B payments to
KP disabled workers via Disability Insurance program (created in 1956). Source: CATO Institute, White House OMB. (@E) www.kpcb.com USA Inc. | High Level Thoughts 42
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