market-ticker.org / by Karl Denninger / 2016-10-15 05:00
The budget deficit was in fact $1.4 trillion — not the claimed $587 billion (which is bad enough, incidentally.)
Last year the Federal Government spent $1,417 billion dollars out of $3,854 billion, or 37% of every dollar it spent, on Medicare and Medicaid. This was a 9.3% increase over last year’s expenditure of $1,296,731 (million), all-in.
But inside this figure are even-more damning numbers.
Payments to the health care trust funds were up 13.4% (!)
Spending on CHIP, the plan for poor kids, rose last year by an astounding 56%. While the total spent was only $14.3 billion that rate of rise is utterly astronomical by anyone’s measure.
Don’t believe for a second that administrative expenses are under control, which is a claim often made for Medicare and Medicaid: They were up 32%last year for the primary hospital insurance trust fund. No, that’s not a misprint.