Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.2 9/5/84; site uwmacc.UUCP Path: utzoo!lsuc!watmath!clyde!cbosgd!ihnp4!qantel!hplabs!pesnta!amd!amdcad!lll-crg!gymble!umcp-cs!seismo!uwvax!uwmacc!myers From: myers@uwmacc.UUCP (Latitudinarian Lobster) Newsgroups: net.politics Subject: Re: Supply-side Economics: the Savings Message-ID: <1667@uwmacc.UUCP> Date: Thu, 7-Nov-85 15:59:08 EST Article-I.D.: uwmacc.1667 Posted: Thu Nov 7 15:59:08 1985 Date-Received: Sun, 10-Nov-85 19:47:03 EST References: <756@whuxl.UUCP> <29200244@uiucdcs> Organization: Ken Kopp's Fresh Seafood Tank Lines: 83 > > For the record, military spending does not exceed outlays for "social > spending". Data for the following table was obtained from the US > Statistical Abstract, 1984, p.316; the numbers indicate acutal outlays in > millions of dollars. [billions, surely not millions] > > 1980 1983 > ----- ----- > National Defense 135.9 214.8 > Vet.Benefits 21.2 24.4 > Total Military 157.1 239.2 > % of total outlays 27.2 29.7 > > Income Security 193.1 282.5 > Health 55.2 82.4 > Education 30.8 26.7 > Total Social Spending 279.1 391.6 > % of total outlays 48.4 48.6 > > Scott Renner > {pur-ee,ihnp4}!uiucdcs!renner OK, let's use the 1985 *Economic Report of the President* and then more carefully consider our categories. The big problem above is the Income Security category, in which Scott is lumping together Social Security, Medicare, and the Income Security program per se. Now, the money for Social Security and Medicare do NOT come out of the general coffers of the Fed but come out of the Social Security fund. Budget receipts for social insurance taxes continue to outpace the spending on Social Security and Medicare (see table B-71). The figures below are in billions of dollars not adjusted for inflation, and the 1985-6 figures are estimates. 1976 1980 1983 1984 1985 1986 ---- ---- ---- ---- ---- ---- National Defense 89.6 134.0 209.9 227.4 253.8 285.7 Net Interest on Debt 26.7 52.5 89.8 111.1 130.4 142.6 Total 116.3 186.5 299.7 338.5 384.2 428.3 1976 1980 1983 1984 1985 1986 ---- ---- ---- ---- ---- ---- Education 18.9 31.8 26.6 27.6 30.4 29.3 Health 15.7 23.2 28.6 30.4 33.9 34.9 Income Security 60.8 86.5 122.6 112.7 127.2 115.8 Veterans Benefits 18.4 21.2 24.8 25.6 26.9 26.8 Total 113.8 162.7 202.6 196.3 218.4 206.8 Much leftist propaganda on defense spending includes the total amount of the interest on the national debt as defense spending. I'll let the reader judge for herself. Most also include veterans benefits under national defense spending, but I think of it more as a form of income security (although it can be argued both ways). There are also all sort of other small expenditures that one can lump into the second column. Now, it's not so much the absolute figures that matter, but look at the trends indicated above -- defense and interest spending are rising much more dramatically than social spending, leaving social security and medicare aside. Perhaps more telling are the figures on government purchases of goods and services (see table B-2). Just for fun, let's throw in figures on the civilian unemployment rate and the capacity utilization rate. The dollar figures are in billions of 1972 dollars. 1976 1980 1983 1984 ---- ---- ---- ---- Defense purchases 64.9 70.0 84.7 89.5 Non-defense purchases 31.8 36.4 31.5 32.9 Civilian unemployment 7.7% 7.1% 9.6% 7.5% Capacity utilization 80.4% 80.2% 75.3% 81.6% Expenditures for defense related goods and services has increased by 38% from 1976 to 1984 while that for non-defense stuff has increased by only 3.5%. What think y'all? -- Jeff Myers The views above may or may not University of Wisconsin-Madison reflect the views of any other Madison Academic Computing Center person or group at UW-Madison. ARPA: uwmacc!myers@rsch.wisc.edu UUCP: ..!{harvard,ucbvax,allegra,topaz,akgua,ihnp4,seismo}!uwvax!uwmacc!myers BitNet: MYERS at WISCMACC