“We the people” is often used when we talk about liberty and justice for all. It is not a phrase used very often when we talk about things that are not so noble, such as spending. When we talk about spending, we use “the government” as if somehow we can separate and/or distance ourselves from the responsibility. Well “we the people” had a budget of $3.7 trillion dollars in 2015. Do you have any idea where most of the money went?
The budget that “we the people” had in 2015 can be broken down into 3 broad categories; Discretional spending, Mandatory Spending, and interest. I am not going to go into a long civics lesson here, but there was something significant that happened in 2015.
For the first time in history, the United States government spent more on health care than it did on Social Security. Up until 2015, social security had been the largest single budget item. In 2015 the government spent $936 billion on health care while it only spent $882 billion on social security. This is according the a recent report issued by the congressional budget office.
Why is this so important? The significance is revealed when you realize that when compared to 2014, the expenditures on health care which included, Medicare, Medicaid, the Children’s Health Insurance Program, and Affordable Care Act subsidies was 13% higher in 2015. At a 13% annual increase, the cost of health care will double every 5.5 years. Put a different way, spending on health care will consume the entire US budget somewhere between 2026 and 2031. That is only 10-15 years away.
With this as a back drop, I want to ask you a few questions.
1) Will the government renege on some of it promises?
2) Where will the government get the money to make sure the answer to question 1 is a “no?”
3) Do you think congress will raise taxes to avoid a “yes” answer to question #1?
4) What is the best way to protect your hard earned money from higher taxation?
5) Is there a way to make sure you and your family will be able to afford quality health care?
6) Will benefits be decreased in such a way to make it appear the answer to #1 is still a “no?”
7) Is there a way to position yourself to not only survive this coming storm, but to profit from it?