Entitlement Programs Are the Largest & Growing Expense Items
on USA Inc.'s Income Statement in Peace Time
USA Inc. Spending as % of GDP, 1795 — 2010
BB Yo, me mc sce ee em ome = ss sm ee oi ce So SE SS Go — cot om me Age, a All Other Spending = Social Security = Medicare + Medicaid
fp ~~ nnn ee BBY = ee ee ee ee ee ee World War Il |->§}-------------------------
Federal Spending As % of GDP
0% 1795 1820 1845 1870 1895 1920 1945 1970 1995
Note: Medicaid spending only includes federal (not state) portion of spending.
KP Source: John Cogan, Stanford University. (@)E) www.kpcb.com USA Inc. | High Level Thoughts 43
Perspective —
USA Entitlement Spending = India’s GDP
¢ With a population of 1.2 billion (vs. USA’s 310 million) and 2010 GDP growth of 10% (vs. USA’s 3%), India is a well- recognized emerging country on the global stage.
¢ It’s notable that India’s 2010 nominal GDP* of $1.43 trillion was equal to USA’s $1.43 trillion in federal government spending on Social Security, Medicare, and Medicaid.
Note: *Nominal GDP is not adjusted for purchasing power parity (PPP). Population and GDP data per IMF. a USA Inc. | High Level Thoughts 44
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