Monday, September 27, 2010
The cold, hard reality politicians ignore
I'm sure readers are as fed up as I am with the bleating cries of politicians wanting more stimulus spending, more taxes on the rich, and more entitlement spending. I thought it might be instructive to take a look at the cold, hard reality of where our Government spending is right now.
These graphs from the Heritage Foundation all use official economic statistics - there's nothing made up or guessed at. They give a true picture of our financial situation in all its grimness. I've only used four of them. There are many more at the link. Highly recommended reading.
First, let's look at the growth in Federal government spending versus the growth in US household income since 1970.
Clearly, such growth is absolutely unsustainable. Even present levels of expenditure are causing real harm to US taxpayers, forced to pay for them willy-nilly.
If Federal expenditure continues to grow, there will be a couple of really disastrous consequences.
Unless we radically change direction, that's what's staring us in the face right now. If those deficits and debt levels come to pass, they'll make our present economic woes seem like a Sunday school picnic by comparison.
Given those realities, what about cries that the 'rich' should 'pay their share', and that tax breaks should be given to the middle class, but not to the rich? Let's look at who pays what in current taxation, shall we?
In other words, the 'rich' are already paying through the nose for our Government's profligacy. If they're made to pay even more . . . how long, do you think, will it be before many of those 'rich' people decide that they'd rather earn less, and keep more of what they earn? Or, failing that, how many of them will take their capital and invest it - and themselves - overseas, in countries that value their economic contribution sufficiently highly to allow them to keep more of it for themselves, without trying to tax to death 'the goose that lays the golden eggs'?
Next time someone tells you that we aren't taxing the rich enough, show them that graph. Next time someone calls for more Government stimulus spending, add it to the levels of indebtedness already incurred, and ask them how that's going to help us in the long run. It can't, of course - it's a recipe for disaster . . . but far too many of our politicians seem to ignore that reality.
Remember in November. If any of your elected politicians supported the policies that have got us into this mess, vote the bastards out! And make sure that when you elect others, who promise to fix this mess, you hold their feet to the fire and make sure they act on their promises!
There's simply no way in the world that our current major entitlement programs - Social Security and Medicare - can survive in their present form. We don't have the money to pay for them (see above). If you're relying on them to secure your future, you need to be making alternate plans, right now.