Tuesday, January 1, 2013

The Fiscal Cliff is a Joke: The Problem is us

 
The real fiscal cliff is our unsustainable welfare state which, depending upon your personal preferences, is already bankrupt or will be no later than 2030.  Unfortunately, as a result of an aging population [too few babies and too little immigration] and surging health care costs, our welfare system has become unaffordable.  The average Medicare couple pays $109,000 into the program and gets $343,000 in benefits out.  The statistical you and me – American Greeks – will end the political career of anybody that tries to fix this or even tell us the truth about it.
 
·         Government debt as a percentage of gross domestic product is around 74 percent now.  Interest on that debt for 2012 was $360 billion.  The fiscal cliff deal on the table at the moment would raise about $60 billion a year in new taxes.
 
·         Under current spending, debt will approach a ruinous 90 percent of G.D.P. in a decade and a cataclysmic 247 percent of G.D.P. 30 years from now. 
 
·         By 2025, entitlement spending and debt payments are projected to suck up all federal revenue.
 
·         According to the International Monetary Fund, meeting America’s long-term obligations will require an immediate and permanent 35 percent increase in all taxes and a 35 percent cut in all benefits.
 
What part of this do we not understand?  The nation is being run by Bible-thumpers, libertarian anarchists and progressive, anti-capitalist commies.  If you like one of our political Parties or hate one more than another, then you are the moron.
 
My generation is certainly the “Greediest Generation” and my children’s generation seems to be falling right in behind.  We are going to have to wake up folks.
 
Another Fiscal Flop
By David Brooks
Published: December 31, 2012, NYT
 
Is it sad or hopeful to see the ever optimistic Brooks write this column?  The one place where I disagree with him regards his forgiveness of Boehner and Obama, and by extension the other political leadership.  The left wants to run the country by referendum but Americans don’t;  we expect our representatives to go to Washington and do the right thing.  At a minimum, any leader should be able to tell us the truth – most especially a President now free of personal political consequences for life.  These are the protectors of the middle class?  Also derelict are the media, main stream, political and commentariat combined.  We need some unvarnished truth from these folks.

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