Real Unemployment at 14.8 Percent: The rate of “underemployment” or “real unemployment,” includes the unemployed, those who want work but have stopped searching in this economy, and those who are forced to work part-time because they cannot find full-time employment. In total, 22.7 million Americans are underemployed.
Study Shows that Government “Stimulus” Lowers Private Spending: A January 2012 report prepared by University of California, San Diego economist Valarie Ramey concludes that government spending increases government employment, but not private employment. According to the study, “For the most part, it appears that a rise in government spending does not stimulate private spending; most estimates suggest that it significantly lowers private spending.”
Medicare Spending Rising Fast: According to CBO’s latest baseline projections (which are well below CBO’s alternative, more likely, fiscal scenario), current outlays for Social Security, Medicare, and Medicaid are projected to rise from 10.6 percent of GDP in 2013 to 12.1 percent in 2022. Outlays for Medicare specifically are expected to grow from $598 billion in 2013 to $1.04 trillion dollars in 2022; a more than 90% increase. CBO’s projection for the entire 2013-2022 period is a whopping $7.82 trillion.