Skip to comments.Is The United States of America a Failed Welfare State?
Posted on 11/10/2011 7:43:04 AM PST by Graewoulf
The financial death spiral of the US Federal Government has been caused by financially irresponsible politicians during the last 80 years. Their lack of stewardship has resulted in them charging us with a National Debt of 14.8 TRILLION dollars, which must be paid back, plus interest, to those who we borrowed the money from. We have indeed allowed these same politicians to cruelly burden our own grandchild with this horrific National Debt. We have no one to blame but ourselves for electing them in the first place, and not impeaching them when they failed to spend our money within our means.
The financial condition of other failed Welfare States today reminds us of the prophetic warning of England's former Prime Minister Margaret Thatcher: "The problem with Socialism is, that eventually you run out of other people's money."
“Is The United States of America a Failed Welfare State?”
The left wing freaks would say so, but only because we don’t spend ENOUGH on welfare programs.
All welfare states are failed.
America has not failed but is on the verge of flunking.
Government has created spoiled kids who grow to think they are entitled. I place blame squarely at the feet of voters, for it is we the voting public, which hold the power.
We need to be understanding, show love, do not hate them. Stand firm, tough love is key in dealing with spoiled children.
Socialism is the idea that we can successfully live at the expense of others. When imposed by government, it is the idea that we must live at the expense of others no matter what the economic and social costs will be in the long run.
But no Christian has the right to live at the expense of others, for in order to do so, he must either directly or indirectly coerce his neighbor to fulfill his demands for the resources that he must consume. This is the case even when the demand is sanitized and legalized through government channels, so instead of crudely dressed housebreakers, the transfer is accomplished by people in suits working in an air conditioned office.
Prior to government’s seizure of the care of the indigent, charity was had been established as a permanent part of the responsibilities of being a self-sufficient adult. To destroying the black family, we can now add general welfare to the institutions that government destroyed when during its attempt to co-opt them.
Is the United States of America a failed welfare state?
Will America suffer the same fate as that of other failed welfare states?
Entitlement Reform must be a process of change, not cutting them off at the feet. Help them with love to understand what being an adult really is.
We must stand firm in our direction of how it will be. No more freebies, you want to eat, you must work.
The key to success is to understand one another. America needs a leader, one that is able to transform this nation from its welfare state and his name is Cain.
You forgot about the trillions in unfunded liabilities, that can never repaid. So, I’d have to say “Yes!”.
GDP is $14.6T.
Debt is $14.8T.
Spending is $3.6T
Deficit is $1.3T.
Welfare is $0.7T.
The kicker is that federal revenue never exceeds 20% of GDP - $2.9T theoretical max, $2.3T current reality. Revenue sources are pretty much tapped out. Increasing taxation at this point will reduce revenue, as producers will “go Galt” (reduce taxable income and/or drop out of production).
The second kicker is that GDP annual growth averages 2% - and the federal spending baseline growth is legislated >3%. It would take greater-than-average unsustainable GDP growth just to keep pace with _baseline_ spending increases (not to mention above-and-beyond spending increases, which are where ALL the “cuts” are happening).
That leaves spending cuts - deep ones - to avoid ruinous debt.
The third kicker is that about 20% of federal spending is untouchable debt servicing. That’s a third rail: touch it, and the debt-driven system dies. That leaves the remaining spending to bear 50% cuts across the board JUST to stop the deficit.
The fourth kicker - and this one is to the head - is that about half of all “taxpayers” receive a net profit on their tax liability. By being in that financial position, they also garner assorted additional profit thru welfare. They have no incentive to initiate real spending cuts; to the contrary, they have intense interest in keeping, at minimum, welfare/social spending right where it is.
That leaves us with the conclusion that to JUST stop the ruinous deficit, ALL non-debt non-welfare spending must stop. Outright. Period. No military spending. No other government bureaucracies. No EPA, Education, Energy, BATFE, Transportation, NEA, IRS, etc. departments (some may cheer their demise, but the fallout would be enormous - starting with millions of federal workers joining the unemployed with no wealth-creation skills). ...which ain’t gonna happen.
Same fate suffered? Yes. The path there may vary, but the endpoint is the same. This system will continue as is (thanks, Boehner), with fewer entities buying our ever-increasing debt, causing the Federal Reserve to declare the existence of ever more digital currency to buy that debt, devaluing the dollar at an accelerating rate, aggravated by sociopolitical thrashing to confiscate more to prop up the “too big to let fail” system and increased evasion of that confiscation, hyperinflation sets in, and non-producers do not have enough to survive. Gets kinda ugly.
The strength of America used to be the character of its individual citizens. Immigrants - who left the countries of their birth, their towns and villages with little more than a few clothes and skills for hard work and perseverance.
We have over-indulged, lost our spirituality and our way.
This age of implosion and instability could have an unintended benefit. Our children might discover that the most valuable assets are : life, liberty and the pursuit of self-respect, a work ethic and ultimate happiness.
One can hide and complain, but it takes action to save our nation. Go to any National Cemetery and ask the fallen, shall we just roll over? Admitting defeat is not the American way, we must fight back.
-In the last 10 years, the number of people taking from our nation has exceeded the number that contribute to it. Nobody cares about honor or principles. They would rather be leeches and vote for more freebies than actually produce anything.
-Education and intelligence is sliding backwards. The majority of Americans under 30 are brain-dead and tethered to complete garbage in the media (TV, music, movies, pop magazines). They are hypnotized into complete laziness and narcissism, only caring about more free toys, watching TV, getting wasted and laid at anyones expense. That is the message beamed into their minds since birth. Now they are teaching (and banging) younger generations. Most have never even read a small book and fewer know how to actually write. Why do you think so many jobs are done by the third world? This idiocracy has made much of the West unemployable.
2012 is our last chance to completely overhaul this idiot culture.. Unfortunately, I dont think its possible. Most people will pay no attention until its too late
Oh, BTW: my scenario does not account for any sudden and severe obligatory spending _increases_, such as hinted at by http://www.freerepublic.com/focus/f-news/2805083/posts
Where is a successful welfare state?
Excellent analysis! Thanks!
Using your figures:
” USA federal:
GDP is $14.6T.
Debt is $14.8T.
Spending is $3.6T
Deficit is $1.3T.
Welfare is $0.7T.”
I find that income is 3.6 - 1.3 T $ = 2.3 T$. ( I’m not sure how the welfare # fits in.)
Then to find the % of excess spending: 2.3T$/100% = 3.6T$/X , X = 156.5% was spent, or 56.5 % more money was spent than was collected.
In your humble, but ALWAYS correct opinion, would you agree that elected Federal politicians should have all their benefits and salaries cut each year by the % of overspending as calculated above?
We are a conundrum.
To increase demand for goods and services (job creation) we have to consume those goods and services. So it is necessary that we maintain our materialistic attitude(s).
The most stable period of our society seems to have been following WWII - a time of revitalization in faith, families and fortunes.
My hope is that, as a society, we will have a renaissaince or epiphany and return to faith, families and effort so that we might find purpose again.
From the threads on FR - everything is SEX, SEX, SEX - unwanted or perverted. When I was young - sex was the delicious mystery that awaited marriage, family and a warm home with happy, beloved children, some adversity but always faith in the future.
Maybe - out there - somewhere we will be blessed again.
My opinion is neither humble nor correct. Nonetheless, here ‘tis:
There are many variants on the theme amounting to punishing incumbents for excessive spending (or other grievances). I tend to agree with them, and as much dismiss them. Such restrictions would be enacted by those who would suffer the consequences - as such, the restrictions & punishments will not be enacted, ever. Ergo I spend little time contemplating such laws.
BTW: welfare fits in as part of the $3.6T. The $1.3T and $2.3T are revenue (insofar as incurring debt is a form of income); welfare is spending.
” - - - Such restrictions would be enacted by those who would suffer the consequences - as such, the restrictions & punishments will not be enacted, ever. Ergo I spend little time contemplating such laws.”
Then how should the voters hold the elected accountable for their violations of our trust?
Insofar as the elected have arranged for practical tenure by creative abuse of the Constitution, “When in the Course of human events, it becomes necessary...”
I prefer the last resort to be a Constitutional Convention.
Between then and now, other measures, such as a well-worded, recall election campaign.
Maybe the formation of a Tar and Feather wing of The Tea Party might be useful.
There’s nothing wrong with the Constitution for which a Convention is necessary.
Like the Tar-and-Feather wing though.
I’m waaaaay past fighting age.