Reducing Federal spending is tough—90% tied to benefits, aid, defense, interest.

Sharing is Caring!

Reducing federal spending might sound simple, but the numbers reveal a different story. The U.S. federal budget stands at around $7.3 trillion, with mandatory spending—including Social Security, Medicare, Medicaid, and interest on the national debt—making up a whopping 75% of the total. When defense spending is added, this figure climbs to nearly 90%, leaving little room for cuts.

See also  Interest Rates explode.

Mandatory programs are not easy to slash without serious social and political consequences. These funds go to essential social benefits and debt interest, which can’t be easily adjusted. Even if discretionary spending—covering areas like education, transportation, and research—were cut entirely, savings would reach only about $700 billion, a fraction of the budget.

The numbers underscore the challenge: true budget reduction means tackling mandatory spending, a politically sensitive area, or finding other ways to address the growing federal debt.

Sources:


Views: 116

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.