Describe the difference between entitlement programs and discretionary programs.

Social Security, Medicaid, and Medicare are all mandatory spending programs, also known as entitlement programs.

a. Identify a change in federal spending between 1970 and 2023 (projected) based on the chart above.

 

b. Describe the difference between entitlement programs and discretionary programs.

 

c. Describe one demographic trend that has contributed to changes in entitlement spending.

 

d. Explain why changes in entitlement spending make balancing the federal budget difficult.

 

e. Explain how deficit spending affects the projected trend in net interest.