http://theeconomiccollapseblog.com
http://albertpeia.com/moretakersthanmakers.htm
‘America is rapidly becoming a nation of
takers. An increasing number of Americans expect the government to take
care of them from the cradle to the grave, and they expect the government to
dig into the pockets of others in order to pay for it all. This
philosophy can be very seductive, but what happens when the number of takers
eventually outnumbers the number of producers? In 11 different U.S. states,
the number of government dependents exceeds the number of private sector
workers. This list of states includes some of the biggest states in the
country: California, New York, Illinois, Ohio, Maine, Kentucky, South Carolina,
Mississippi, Alabama, New Mexico and Hawaii. It is interesting to note
that seven of those states were won by Barack Obama on election night. In
California, there are 139
"takers" for every 100 private sector workers. That is
crazy! The American people have become absolutely addicted to government
money, and it gets worse with each passing year. If you can believe it,
entitlements accounted for 62 percent of all federal spending in
fiscal year 2012. It would be one thing if we could afford all of this
spending, but unfortunately we simply cannot. We are drowning in debt, and we are stealing more than a
hundred million more dollars from future generations with each passing
hour. No bank robber in history can match that kind of theft.
Yes, we will always need a safety net. There are many
people out there that simply cannot take care of themselves. We certainly
don't want to see anyone sleeping in the streets or starving to death.
But if the number of people jumping on to the safety net
continues to grow at the current pace, the net will break and it will not be
available for any of us.
For example, the number of Americans on food stamps grew from
about 17 million in 2000 to more than 47 million today. It nearly tripled
in just 12 years.
What will happen if it nearly triples again over the next 12
years?
The federal government even has a website (benefits.gov)
that guides people through the process of figuring out what welfare programs
they can take advantage of.
Overall, the federal government runs nearly 80 different "means-tested welfare
programs" and more than 100 million Americans are already enrolled in
at least one of those programs.
Yes, I realize that figure is very hard to believe. I had
a hard time believing it when I first came across it.
And it is even more shocking when you realize that the figure
of 100 million Americans does not even include those who only receive Social
Security or Medicare.
Today, there are 56.76 million Americans on Social
Security.
To support all of those Americans on Social Security, there are
only about 94.75 million full-time private
sector workers.
So there are just 1.67 full-time private sector workers to
support each American that is on Social Security.
Medicare is also growing like crazy. As I wrote about the other day, the number of Americans on Medicare is
expected to grow from 50.7 million in 2012 to 73.2 million in 2025.
How much farther can we push things before the entire system
collapses?
In order to support this exploding entitlement system, we need
a lot more Americans to be working good paying jobs.
Unfortunately, millions of good paying jobs continue to be shipped overseas and they aren't coming back.
We are even losing good jobs to our own prisoners. The
United States has the largest prison population in the world by far, and the
exploitation of that low wage labor pool has become a boom industry in
America. Even Microsoft and Boeing are using prison labor now. Just
check out this video.
Meanwhile, there are millions upon millions of law-abiding
Americans that cannot find jobs and that cannot take care of
their families.
So poverty and dependence on the government are absolutely exploding. We have a system
that is so messed up that it is hard to even put it into words. The
middle class is being viciously shredded, and most
Americans just continue to applaud the politicians from both parties that are
doing this to us.
Our economy is being gutted at the same time that the welfare
state is experiencing unprecedented growth. Instead of giving us real
answers, our "leaders" just continue to borrow, spend and print more
money. We are about to hit the debt
limit again, and the Obama administration is saying that we should just do
away with the debt limit permanently.
Most of our politicians don't seem to understand that they are
systematically destroying our economy and the bright futures that our children
and our grandchildren were supposed to have.
But there are some politicians out there that get it.
Unfortunately, many of them live in other countries. For example,
Canadian MP Pierre Poilievre seems to have a firm grasp on what debt is doing
to the United States. The following are some excerpts from one of his
speeches...
"By
2020, the US Government will be spending more annually on debt interest than
the total combined military budgets of China, Britain, France, Russia, Japan,
Germany, Saudi Arabia, India, Italy, South Korea, Brazil, Canada, Australia,
Spain, Turkey, and Israel."
"Through
government spending the indulgence of one is the burden of another; through
government borrowing, the excess of one generation becomes the yoke of the
next; through international bailouts, one nation's extravagance becomes another
nation's debt"
"Everyone
takes, nobody makes, work doesn't pay, indulgence doesn't cost, money is free,
and money is worthless."
You
can see his entire speech right here.
And
if we continue down this path it is most definitely true that our money will
eventually become worthless at some point. Just today I was down at the
grocery store, and a can of chili that I was able to get on sale for 75 cents a
couple of years ago now has a "sale price" of $1.69. If the
Federal Reserve keeps recklessly printing dollars, eventually we will be
fortunate to get a can of chili for 10 bucks. Things cost too much already, and the
Fed seems absolutely determined to cut the legs out from under the U.S. dollar.
Unfortunately,
printing money is the only way that we are going to be able to service the
gigantic amounts of debt that we are accumulating.
According
to Chris Cox and Bill Archer, two men who served on Bill Clinton's Bipartisan
Commission on Entitlement and Tax Reform, there is no way in the world that we
could raise taxes high enough to pay for all of the obligations that we are
currently taking on. They say that even if we taxed all corporations and
all individuals at a 100% tax rate on all income over $66,193, "it
wouldn't be nearly enough to fund the over $8 trillion per year in the growth
of U.S. liabilities."
Are
you starting to get an idea of how much trouble we are in?
We
don't have enough money to pay for all of this.
We
are broke.
Our
current economy is a debt-induced illusion, and we will soon be waking up to a
tremendous amount of pain.
Are
you ready?