Tuesday, March 19, 2013

Daniel Mitchell points out that we can balance the budget in only five years if all we do is hold spending to the rate of inflation. Even allowing 3.4% annual growth above inflation, we can balance the budget in ten years.

Of course, this ignores the largest driver of spending growth, entitlements are growing largely because of demographic change, and our current Medicare covers everything approach to health care sacks us with much of the cost overruns there too.
 
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