The battle lines are forming within the Democratic Party over the charged question of reforming Social Security in the days leading up to President Obama’s State of the Union address.
Liberals, such as Sen. Bernie Sanders (I-Vt.), and labor unions, such as the AFL-CIO, AFSCME and SEIU, have taken a firm stand against cutting Social Security benefits... They are still reeling over the deal Obama struck with Senate Republican Leader Mitch McConnell (R-Ky.) in December to extend almost all of the Bush tax cuts and chop the Social Security payroll tax for one year by 2 percentage points.
Back in the little land we like to call Reality, a Mish reader created several sobering graphs that represent the impending collapse of the Social Democrat schemes that would make Bernard Madoff blush.
Here is a chart I created using budget projections from the CBO. The main point is from now until 2020, we could eliminate 100% of all federal non-defense discretionary expenditures and still run a deficit.
US Federal Revenues and Expenditures 2000-2020
I went back to the data after getting into one too many arguments with people who claim that we can solve our budgetary problems by eliminating government "waste" - the programs that study the sex lives of jellyfish and that sort of thing - without real cuts in entitlement programs.
Entitlement Spending Growth
Unless the Budget Fairy waves her magic wand, it's not going to happen.
The Democrats' Utopian schemes are imploding as we speak -- in California, Illinois and New York. And, soon, coming to a Social Security and Medicare recipient near you.
All over the world, the Fabian Socialist welfare states are collapsing.
And despite all this, despite history, facts, logic and reason all aligned against their agenda, the Obama Democrats press on, hastening the collapse of an economic system they view as 'unfair'.
Bernie Sanders has nothing to worry about.