What is the source of increase in US debt?

In a followup research to this, Kevin Kliesen and Daniel Thornton point the source for rise in US debt.

It is mainly on account of rise in expenditure in mediclaim and social security. As these expenditures are difficult to reduce (and would only rise), strains on debt to continue:

This analysis suggests that the increase in the debt over the period 1975-2007 was not only a consequence of increased government spending without increased revenues, but also that the government increased payments to individuals through Social Security, Medicare, and other payments without sufficiently reducing spending elsewhere in the budget. In short, these trends, as the CBO’s recent Long-Term Budget Outlook makes clear, will continue to strain federal, state, and local budgets as they consume an ever larger percentage of federal spending dollars.

A friend pointed to this wonderful link on US debt clock. Must check this!

One Response to “What is the source of increase in US debt?”

  1. Harlan Green Says:

    Kleisen-Thornton neglect to mention that SoSec revenues still top expenditures with $2 trillion surplus, and don’t itemize OPI–Other Payments to Individuals. I.e., what about the Bush tax cuts that account for some $3 trillion of the deficit, and will add another $7 trillion to deficit by 2017, according to CBPP, unless sunsetted before then? H Green, PopularEconomics.com

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