Jobs versus Entitlements

Posted: July 18, 2012 by AKA John Galt in America, American Freedom, American History, Economy
Tags: , , , , , , ,

Here are two facts, which play into an alarming trend for any of you who love freedom and wish to be successful in your future endeavors …

Between April-June 2012, an estimated 246,000 Americans were added to Social Security’s disability insurance program. In that same time period, only 225,000 American jobs were created.

Since 2008, 3.6. million Americans have been added to Social Security’s disability insurance program. In that same time period, a net total of 1.3 million jobs were lost.

If this trend continues, we’re royally screwed. To be honest, we’re already screwed, but if this economy doesn’t pick up soon and if we don’t get our welfare society under control, then your children and grandchildren will be royally screwed.

You do realize, don’t you, that the true total of our unfunded liabilities is $84 trillion? Over $30 trillion of that is owed to public debt holders, federal employees and current retirees for Social Security and Medicaid benefits. What does this mean? According to the National Center for Policy Analysis, “Overall, the fiscal imbalance is equal to 5.7 percent of the present value of all future GDP, which translates into about 31 percent of the long run federal revenue estimate,” the report states. “Thus federal revenues would have to rise immediately and permanently to 24.1 percent of GDP to cover the fiscal imbalance.” Can anyone tell me how we are expected to permanently fund the government at this level, if tax revenue generally fluctuates between 18% and 20% of GDP? Two words: It can’t.

This is the path down which the Democrats are leading us. The Obama administration is flat-out encouraging the growth of our entitlement society, and hoping that they can stoke the wealth envy flames long enough to squeeze more money out of the evil rich people. Even if they manage to increase tax rates on the rich, it isn’t going to come close to generating 24.1% of GDP in tax revenue. What happens then? We borrow more money and run a deficit to pay for our moocher society. And as that moocher society keeps growing (and it will, so long as the Democrats and moochers are in a perpetual symbiotic cycle), they will continue to push a little further and increase taxes just a little bit more …

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