The War on Poverty began in 1965. Mandatory entitlement spending and investment in businesses both equaled 5% of GDP in 1965. Today, mandatory entitlement spending equals 15% of GDP and investment in businesses equals 1% of GDP. How exactly do we pay for the ever rising entitlement expenditures without businesses creating jobs in the United States? After 47 years, the War on Poverty has resulted in 47 million people in poverty and on food stamps. If we just elect Obama to another term, I’m sure he can win the war – just like he did in Afghanistan and Iraq and Libya. Jobs are overrated – the MSM told me so.
From Bloomberg Briefs:
“Policy choices made in the near-term will affect the economy for years to come. If not addressed, current debt and spending dynamics will probably lead to a reduced growth path, placing at risk expenditures on vital social programs and, over time, crowding out private sector borrowing that funds the gross private domestic investment necessary to boost productivity and living standards. Dollars spent on entitlements dwarf those spent on discretionary items such as education, and tower over net fixed business investment, which is partially responsible for greater productivity, business expansion and rising living standards. Periods with greater investment as a share of GDP are highly correlated with both faster economic growth and rising living standards. One risk to the U.S. economy is that rising entitlement spending will require the government to borrow from the finite amount of capital held by private savers, thus squeezing out private firms that need the capital to expand businesses and increase productivity.”