re: US Median Home Prices Crashed -7.4% In Q2, Worst Decline Since Recessions Of 1970 And 2008

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Where in the heck do you think that money is going? Are they really that hooked on deficit spending?

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LINK

For FY2022 the biggies were:

1. DHH (read: Medicare/Medicaid) - 27.2% of spending
2. Dept of Treasury - 16.1% of spending
3. Social Security - 15.1% of spending
4. Department of Defense - 13.2% of spending
5. Department of Education - 6.8% of spending

That's 78.4% of total spending.

The two costs I think are the biggest culprits:
1. DHH (specifically Medicare/caid grants)
2. Treasury (specifically debt servicing)

DHH:
The big cost here appears to be Medicare/Medicaid grants. In FY2017 it was $422B, last year it had grown by over 50% to $660B. Socialized healthcare plans fail when the population paying into that system shrinks.

Treasury:
The big cost here is, of course, debt servicing. From 2017-2022 that servicing spiked over 50% (from $457B in 2017 to $716B in 2022) with most of that spike having come since only 2021's spending frenzy (due to PPP forgiveness, increased welfare benefits and stimmy checks). To underscore this, debt servicing for FY2023 is already $725B and we still have just over a whole quarter left in the year.


Things like Social Security and Defense have grown as well but not nearly as much as those two. As boomers continue to age into care systems at an increasing rate, Social Security and Medicare/caid spending will continue to rise. Because we have been in a scenario of essentially borrowing in order to service debt and interest rates have risen, expect debt servicing to continue to climb.