Entitlements are government programs that provide benefits to people who require support and qualify because of their age, income, or disability. Entitlement programs such as Social Security and Medicare are designated as part of the mandatory spending within the federal budget. In recent years, entitlement programs have required an increasing share of federal spending. Which programs are entitlements? Who do they serve? Can anything be done to curb their costs?

If one billion dollars is equal to a school bus filled to the brim with $100 bills, the United States’ annual budget is equal to about 6,300 school buses. These funds pay for everything from keeping parks open and building new highways to unemployment benefits, the President’s salary, and the military’s tanks, planes, ships, and soldiers. At the same time, the United States has a budget deficit, meaning that more than a thousand of those school buses are filled with money that the government borrows to pay its bills. Where did this budget deficit come from? Does it matter? What needs to happen to reduce it?