Jim: I regret that the CAGR percentages do not show up very well on this chart. The purpose of the chart is to emphasize the problem of excess government spending. The "Entitlements Line" shows a CAGR of between 9% and 12.5%. The worst case was between 1962 and 1982 where the spending followed the 12.5% CAGR line. That changed in 1982 and has been improving. Since 1982, the CAGR has been plotting between the 5% and 6% rate curves. Unfortunately, that rate is still double the rate of growth in revenues.

Discretionary spending was growing on an 8% CAGR line from 1962 to 1986. It slowed for a while, but since 1996 the rate of growth steadily runs on a 7% CAGR curve which far exceeds the revenue stream by over 2:1. Revenues tend to track the growth of our GDP.

These two catagories account for 92% of government spending. What we need is politicians who can understand the BMW Method. Watching them spend more than we can afford worries me.