By Andrew L. Sullivan-local conservative activist
Not to sound like a Porter Stansberry ad, but the mainstream media even much of the conservative media is far away from telling just how bad the situation is in the United States and the economic crisis to come. Many know about the 17 trillion dollar debt so let us set that a side for the moment.
The US Constitution was largely set up to bring in tax revenue and fund a national defense as written in Article 1 Section 8 of the Constitution. It was the very reason President Thomas Jefferson was able to raise money for a navy to fight in North Africa in the Barbary Wars. However, today, if we could abolish all expenditures on the US military from the Federal budget, the United States would still be in deficit spending and be spending over two and a half trillion dollars. (See stats at http://www.usdebtclock.org) No one wants to focus on what we are spending money on.
Social Security liabilities are set up to provide everyone in the United States with a Social Security check for over 20 percent of their adult lives. Doubts? Life expectancy is 80 years old and while the next generation will retire at 67. That is still over 20 percent of a person’s adult life. Medicare and Medicaid spend more than Social Security. Obamacare will add to such costs.
We fund these programs with a payroll tax of 15.3 percent which results in people demanding higher wages. Yet, with such taxation, there is no way to raise wages without giving jobs to foreign countries. In fact, the payroll tax contributes to our immigration problem. An employer can hire an illegal immigrant and allow the illegal immigrant to take home the same take home pay as a comparable American worker, while the business pockets the 15.3 difference.
Our country needs doctors and engineers but the way the tax structure is set, we get a flood of low skill immigrants. This leads many to oppose any form of amnesty for illegal immigrants, which means we are deporting doctors and engineers simply because their visas have run out. Americans are losing the desire of keeping highly desirable human assets in the US and instead are giving the advantage to foreign countries like China.
On top of this is the moral decay which happens upon receiving a government check without doing work or creating prosperity. The recipient’s esteem is no longer built on receiving pay for good work, but for merely existing. A thief and a drug dealer have better self-esteem as they actually have to put in work to steal and deal drugs. Perhaps the best argument in favor of dealing drugs is it amounts to doing work without any support from the government. The Federal Government continues to provide all sorts of subsidies, entitlements and other assistance, not understanding it is fundamentally making Americans less moral and less productive.
And back to the 17 trillion dollar debt. The Federal Reserve controls the interest rates and they have been holding the interest rate to near zero. This encourages all forms of government and others to go in to debt and deeply in to it. The result creates a problem. The interest rate eventually has to go up or our currency, the dollar, will be worthless. But since the Federal government has spent so much money, it is terrified how large the debt would grow if the interest rate goes back up.
President Reagan is often derided because of the debt which accrued during his term, but the debt was the result of his efforts to kill inflation. Democrats will mention it was Paul Volker, another Democrat, of the Federal Reserve who killed inflation, but when Volker took action against inflation, the Democrats wanted Volker dead. Reagan re-appointed Volker to the Federal Reserve.
So why is next nobody wanting to talk about inflation and the Federal Reserve? Because the American public is taught more about sex education than economics and the politicians want it that way. You want minimum wage raised to ten dollars an hour? Politicians will say yes! The Federal Reserve will notice the raise in minimum wage causes unemployment and merely inflate the money supply so your $10 wage can only purchase $7.25 of yesterday goods. By the way, the percent payroll tax of 15.3 means the Federal Government will get more tax dollars in the short term of raising the minimum wage. And the cycle continues.
So how does anyone become rich with such manipulation of the economy? Get your wealth away from money! Invest in stocks, bonds, gold. When in need of things, use coupons, barter and trade. For some, this seems obvious. But guess what the Federal Reserve is encouraging people to do? Borrow and spend and borrow some more, and if you do that, the poorer you will be. Sit at home and collect a government check and say “woe is me” all courtesy of the Federal Government.
There is lies the problem. The Federal Government needs people to tax but what if there are not enough people to tax? What if there is not enough wealth to support the Federal Government spending habits? This is no longer a dream scenario. It is the actual situation our country is faced with. I am a realist, not an optimist. Americans will not see these problems for what they are, and the United States is open to exploitation by those willing to embrace the ideas which make people prosper such as unbridled capitalism.
The Democrats do not believe in capitalism but they do believe Republicans are the root of all evil and they are set out to convince all Americans of their truth on this matter. The Democrats seek one party rule. They empower dictator Obama at every chance they get. No more filibuster. No more government shutdowns. We will fund a train wreck like Obamacare and declare Obama God while we let Christians be slaughtered in foreign lands.
Dissolving the United States may take 20 years but I can tell it has already arrived. We fund the Drug Enforcement Agency to go after marijuana as if there was some national consensus but more and more states are legalizing it. To add to such burdens are unfunded mandates such as the EPA sewer separation project imposed on Omaha. How about diverting some of the DEA’s anti-marijuana funds to fund sewer separation? Don’t even bring it up. No one will listen to you.
The great Republic of the United States of American is slowly turning in to the Soviet Socialist State of America and few seem to notice. This is not mere rhetoric. Obamacare is a bigger health care entitlement than anything the USSR provided. But to many Americans, the USSR is not even a memory from a history book. I assure you, the situation is far worse than we are being told.