Watch How Medicare Spending Swallows Washington DC

Here’s a two-fer that combines our feature on the retirement crisis and the healthcare hullabaloo.

It’s a chart — from the Heritage Institute (.pdf) and David Leonhardt — showing just how big Medicare and Medicaid spending are going to get. Basically, 50% of all program spending will be on these two items.

Says Heritage:

The main sources of rising federal expenditures are rising costs throughout the U.S.
health care system and demographic changes, with health care costs playing the predominant
role.  Together, these two forces will cause Medicare, Social Security, and Medicaid to grow
considerably faster than the economy.  Collectively, these three programs now cost 10
per cent of GDP; by 2050, they are projected to cost 19 per cent of GDP. 

Social Security? Snooze.

medicare medicaid

Photo: Heritage

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.