Where Does The Fed Spend Their Money?
Ever wonder where your tax dollars go each year? Well thanks to a helpful podcast by NPR, you can stop guessing where the government spent your money – all $3.9 trillion of it.
29% or $1.13 Trillion of the money the Fed spent last year went towards Medicare and Medicaid. The government pays for the healthcare of about 120 million people. They cover everyone who is enrolled in part A of medicare, and also everyone who qualifies for medicaid (a needs-based healthcare program).
# 2 Social Security
24% of the feds spending is on Social Security benefits. That’s $936 billion dollars.
Before you start to think about how ridiculous that is, just think about everyone who is retired that receives Social Security benefits, no matter how rich or poor. As a matter of fact, there’s about 59 million people who receive such monthly payments. And with 10,000 baby boomers retiring every day and annual cost of living adjustments, this number isn’t going to get smaller anytime soon.
#3 National Defense
National defense makes up 15%, or $585 billion of their budget. This is all money that goes to our military services and it covers their expenditures. That puts us a few hundred billion ahead of the nearest competition.
#4 Income Security
Income security makes up 13% of the budget, totaling $507 billion. Income security is a broad category, but to put it in simpler terms it’s money that goes towards welfare and food stamps.
Our government takes on debt just like many individual consumers so they need to pay interest too. 6% of the budget was used to pay off interest on government debt. That is $234 billion and growing every year as we take on more debt.
Veterans affairs cost the Fed about $195 billion, which is 5% of their spending. This money is used to support our country’s veterans and provide them with services.
Transportation takes up 2% of the budget, equaling $78 billion. International affairs take up 1% of spending, which equals $39 billion. Everything else adds up to 3% of the budget, which equals $117 billion. This consists of FBI, DEA, prisons, homeland security, natural resources, science, space, and technology, general government, community and regional developments, agriculture, and energy.
So, there you have it. That is where the money goes.
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