Part 2/5:
Prior to the pandemic, the annual increase in federal debt was relatively manageable, hovering around $1 trillion per year. However, in the two years following 2020, the debt jumped by $7.5 trillion, a clear indication of the unsustainable trajectory of government finances.
The Entitlement Deficit
At the heart of the fiscal crisis lies the growing disparity between government revenues and expenditures on entitlement programs, such as healthcare and retirement benefits. The data shows that the gap between healthcare contributions and expenditures has widened dramatically since the pandemic, with the deficit reaching nearly $2 trillion per year.
Similarly, the gap between Social Security contributions and expenditures is projected to grow from $200 billion in 2020 to over $1 trillion by 2024. When combined, these entitlement deficits account for the majority of the overall federal deficit, leaving little room for other government spending.
The Bleak Outlook
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