Saturday, January 14, 2012

The two charts that explain most of everything in public policy today

Both charts come from the Center for Budget and Policy Priorities.

Here is the latest chart showing how government social spending is actually quite efficient in making sure most of the money goes directly to beneficiaries. It is ironically in the private sector, where there are large payouts to executives and advertising and other costs, where beneficiaries get less for every dollar they pay in. This is why insurance companies are really upset at the 85% threshold they must now meet for providing benefits to their insureds. They will have to either cut back executive salaries or lower marketing costs. I suppose, though, they'll just fire customer service reps...

Here is the chart showing where our federal deficits are coming from and will continue to come from. It is not on generous social welfare spending, as people are propagandized to assume.

These two charts upend and negate most of the assumptions behind the discourse of government is inefficient and government spending on the poor and middle class is the problem that must be faced or solved. As Jared Bernstein reminds us, people are entitled to their opinions, but not to the facts. And as Stephen Colbert recognized, early in his show's tenure, how "truthiness" works--and how "reality has a liberal bias"...and therefore must be rejected...:-)

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