3,2 Trillion Cancer Cell: What Kills US Economy

Payments, including social security, food stamps, and Medicare and Medicaid, from the US government to Americans should reach a record $ 3,22 trillion in the 2020 fiscal year. It began on October 1.

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These payments are money that a person did not pay for services or goods. According to forecasts Administration and Budget Management payments will amount to 67,9% of government spending and 14,4% of GDP this year.

“We are a nation that people in state security will remember. It is such a cancer cell that can destroy our economy, ”said Stephen Moore, economist at The Heritage Foundation, a conservative think tank. Fox business.

He noted two factors contributing to an increase in government payments in America.

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The first and certainly the largest is the aging population of the country. According to Moore, 80 million baby boomers are retiring at a rate of about 10 000 people per day, and this puts "enormous pressure on the government’s social services functions."

The second factor is "a gigantic increase in government dependence."

One example of this is the surge in food stamp request (SNAP) after the 2008 financial crisis of the year.

The Trump administration has previously faced resistance, trying to cut the program. According to Mathematica research firm, more than 21 million Americans currently use food stamps.

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In a letter to Trump, 70 mayors of American cities urged the president to abandon his plan to tighten the rules for obtaining food stamps. They stated that it would "damage the economy." The president’s plan would save the government $ 2.5 billion.

“The reality is that capitalism is full of ups and downs. And so we need some kind of social protection program that will be countercyclical. And when the cycle is really rough, as it was during the Great Recession, it takes a long time to get everything back, ”Waxman said.

According to forecasts, by 2024 year of state payment reached $ 3,8 trillion.

ForumDaily previously described how does the program work food stamps or SNAP, and painted as much as possible claim it.

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