Congressman David Rouzer stopped by the Wilmington Chamber of Commerce today to update the Board of Directors on current legislative issues. He painted a sobering picture of spending and the national debt. In 1965, entitlement spending (Social Security, food stamps, Medicaid, etc.) accounted for 34% of the federal budget. Today that percentage has grown to 68% (including interest on the $19 trillion in national debt). By 2026, entitlements will account for 78% of the federal budget.
So what does that mean? Discretionary spending (the military, infrastructure and anything else the government wants to provide money for…such as beach renourishment, to mention a local issue) will ONLY account for 22% of ALL federal spending. Congressman Rouzer said that current spending is unsustainable, and that reform is needed to the tax code, rules and regulations hampering business growth, and entitlement programs. Without it, the Congressman said our economy is on a path to implode.