Government spending is broken down into three categories: mandatory spending, budgeted at $2.966 trillion; discretionary spending, forecasted to be $1.485 trillion; and interest on the national debt, estimated to be $378 billion. We only receive about $4 trillion in revenue, so the budget deficits are going to be enormous.
Mandatory Spending
Mandatory spending is estimated at $2.966 trillion in FY 2021. This category includes entitlement programs such as Social Security, Medicare, and unemployment compensation. It also includes welfare programs such as Medicaid.
Social Security will be the biggest expense, budgeted at $1.151 trillion. It's followed by Medicare at $722 billion and Medicaid at $448 billion.
Social Security costs are currently 100% covered by payroll taxes and interest on investments. Until 2010, there was more coming into the Social Security Trust Fund than being paid out. Thanks to its investments, the Trust Fund is still running a surplus.
The Trust Fund’s Board estimates that Social Security's surplus will be depleted by 2034.3 Social Security revenue, from payroll taxes and interest earned, will cover only 79% of the benefits promised to retirees.
Medicare is already underfunded because taxes withheld for the program don't pay for all benefits. Congress must use tax dollars to pay for a portion of it. Medicaid is 100% funded by the general fund, also known as "America's Checkbook." This account is used to finance daily activities and long-term operations of the government.
With 10,000 baby boomers reaching 65 each day until 2030, the costs of the entitlement programs will increase rapidly. The Medicare Trust Fund (HI) will be bankrupt by 2026. An by law, the medicare payroll tax only covers 25% of Part B costs. The other 75% is picked up by the General Fund. The sh*t is about top hit the fan and Biden's huge spending bills will weaken the dollar and result in hyperinflation.
As I have sated in the past SS is a Ponzy scheme