Entitlement reform, RIP

Eugene Steuerle of the Urban Institute has come up with an “Index of Fiscal Democracy” to express this vast, automatic commitment of resources, and the preemption of actual political choice it represents. The higher the index, the more possibilities we have for actually governing ourselves.

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At present, the index stands at 19.7, which is the percentage of federal receipts left over after mandatory spending and interest, according to data compiled by Steuerle’s collaborator Caleb Quakenbush.

By 2026, however, the index will sink to 1.7, absent reforms. That’s the sliver of money we’ll have to pay for research, natural disasters, defense and everything else. By contrast, in 1962, the index stood at 65.3; in 2007, 34.3.

Moreover, if the primary results demonstrate anything so far, it is that voters of both parties oppose trimming entitlements, especially the two giants, Social Security and Medicare, that benefit the elderly.

They have revealed this preference by anointing two front-runners who both promise to “protect” the programs.

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