Today we will look at another set of numbers that should scare every American (source: David Gergen article in the May 9, 2010 issue of Parade magazine):
- Government spending by all levels of government was 35% before the Depression, 24% in 1950, and could be as high as 44% this year. The more we pay for the maintenance of inefficient and unwanted/unneeded government services, the less money we have to spend on our families and less money to expand the economy.
- The Tax Foundation estimates that 60% of all Americans receive more from the the government than they pay in and that number will grow to 70% shortly under current government plans. The obvious problem here is at some point in time the net losers relative to the net gainers of government redistribution of wealth will decide it is not worth the effort to strive and succeed since the fruits of their labors will forcibly be taken and given to others. At that point, the economy and society ceases to grow and advance.
- In a related finding, the Tax Policy Center estimates that only 47% of American households pay Federal income taxes. Why should almost half of the population pay taxes and be supported by the other half who work and pay taxes? This is fertile ground for a divisive civil disagreement or worse among Americans.
- The European Union does not want any of its countries to have its national debt more than 60% of its GDP, feeling that it indicates that a country's ability to pay its debts are in danger of default at that point. The United States national debt ratio to GDP should hit 60% by the end of 2010.
- According to the Economist, the Federal government now employs 250,000 people to write and enforce regulations. If you assume that each of those employees cost $100,000 a year in terms of salary, benefits, and overhead, the federal government wastes about $25 billion a year just on paper pushers.
In another article from May 9, 2010, this one from Robert Burns of the Associated Press, Defense Secretary said he wants to reduce the Pentagon's annual budget by $10 billion. That's the good news. The bad news is that the total Pentagon budget this year is about $690 billion (Source: Kiplinger's, June, 2010 issue) so even if Gates could get $10 billion in this year it would be only about 1.4% of the overall budget. It would be only about .7% of just the deficit the Obama administration is running this year.
Bottom line: we are betting more and more of our tax base future on a smaller and smaller percentage of America citizens who at some point in time will stop tolerating the inequality by either: 1) opting out of growing and improving their lives and financial well being or 2) take a more radical approach to protect their wealth. Once that happens, the ever growing national debt will be more and more difficult to pay off. Given other feeble Obama budget reduction efforts in addition to this feeble $10 billion effort by Gates, there is obviously no one courageous enough in the American political class to take a hatchet job to our government spending before it is too late.
I used to work for a manager who had a great quote: "There is nothing more devastating to an opinion than the right number." We have seen plenty of truthful, right numbers in the past two days. Anyone with an opinion that doubts that this country is heading for a financial meltdown on all fronts has only an opinion, there are no numbers to support to support that conclusion, making that opinion holder either delusional or an idiot (or a politician who usually covers both bets.)
Our new book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at www.loathemygovernment.com. It is also available online at Amazon and Barnes and Noble. Please pass our message of freedom onward. Let your friends and family know about our websites and blogs, ask your library to carry the book, and respect freedom for both yourselves and others everyday.
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