Entitlement Spending: Lacks Sufficient Dedicated Funding
Entitlement programs were created with the best of intentions by the Government. They serve many of the nation’s poorest, whose struggles have been made worse by the financial crisis.
However, with the exception of Social Security (which was developed with a pay-as-you-go funding plan and constructed to be legally flexible if conditions change) and unemployment insurance (which was designed to be flexible at State level), other entitlement plans (including Medicaid and Medicare) were developed without sufficient dedicated funding.
Here we drill down on the funding trends for entitlement plans ...
KP i USA Inc. | Income Statement Drilldown = 73
Entitlement Spending: Expenses Up 2x Over 15 Years
Annual Entitlement Spending Per Household = $16,600 per Year
USA Inc. Annual Entitlement Programs’ Total & Per-Household Expenses, F1995 — F2010 BAM an nee wo me en em OR TN ER a ST $20,000 mas Entitlement Programs Annual Expenses ($B)
$2,000 —— Entitlement Expenses per Household ($) $16,000
$400 Il $0 i T
F1995 F1997 F1999 F2001 F2003 F2005 F2007 F2009
$12,000
$8,000
$4,000
USA Inc. Entitlement Total Expenses ($B) & aS) o oO Entitlement Expenses per Household ($)
1 $0
Note: Data are not adjusted for inflation. Entitlement programs include Social Security, Medicare, Medicaid,
unemployment benefits, food & nutrition assistance, housing assistance and other. USA federal fiscal year ends in
P September; Source: White House Office of Management and Budget. (@E) www.kpcb.com USA Inc. | Income Statement Drilldown 74
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