About This Blog
In my first post on Economic Lunacy, I showed how the government grows progressively larger and larger, consuming ever more of our economy and eating away ever more of our paychecks. For the last century, government spending and taxes have skyrocketed, with no end in sight. It's no coincidence that so many families now require two breadwinners to survive. Not so very long ago, one breadwinner was enough. As I showed previously, in spite of skyrocketing taxes for the last century, those taxes could not keep up with government spending. As we all know, if the government doesn't have enough money, it keeps right on spending anyway, either by borrowing the money or printing more money. Starving the beast has not worked, because the beast has it's own printing press. Therefore, we must slay the beast.
Liberal media sources keep promoting the lie that taxes are lower than they have been since 1950. Here is one such lie from MSN Money. My blogger pal The Reverend buys into this lie, I'm sad to report. These liberal groups promote their lie by only counting SOME of the taxes we all pay as taxes. It's hard to believe anyone would be so dishonest, but that's what they do. At the previous link, MSN Money doesn't count the Social Security payroll tax as a tax. The SS tax is 12.4%. That's an awful lot to omit. MSN Money's logo should be a picture of Pinocchio.
Here's the truth:
In 1950, taxes consumed 22.70% of GDP.
In 1960, taxes consumed 29.08% of GDP.
In 1970, taxes consumed 30.92% of GDP.
In 1980, taxes consumed 31.78% of GDP.
In 1990, taxes consumed 33.23% of GDP.
In 2000, taxes consumed 37.25% of GDP.
In 2007, taxes consumed 37.20% of GDP. (the third highest percent in American history).
In 2010, taxes consumed 30.44% of GDP (it dropped because of the recession).
Anyone who tries to tell you taxes are lower than anytime since 1950 is the very worst kind of liar. The sole reason taxes dropped over the last couple years is because we've been in the worst recession since the Great Depression (according to Obama), and unemployment is 9.8%. It has little to do with marginal tax rates. Yet left-wing groups shamelessly perpetuate the lie. They are using this economic downturn to distort the facts and lie to the American people. Despicable behavior.
While I'm on the subject - In 1910, 100 years ago, taxes consumed only 7.66% of GDP. As I pointed out in my previous post, if we were paying for all the spending government is doing in 2010, our taxes would be over 45% of GDP. No wonder both mom and dad have to work to get by. The government is taking half their wages away by one means or another (liberals somehow call this "compassion").
But enough of that. I have new ground to cover today. What's even more important than where the government has taken us in the past is where the government is taking us in the future. Of the over 45% of GDP that federal, state, and local governments are consuming in 2010, 25.44% of that comes from federal spending. That number is going to skyrocket very soon. This link from the Heritage Foundation shows that federal spending alone will consume about 44% of GDP by 2055, mainly due to unfunded entitlement liabilities coming due. Imagine that scenario. The federal government would be consuming 44% of our GDP, and state/local government would be consuming another 20-25%. The government in total would be consuming 65-70% of the economy. How much do you think will be left to pay WAGES FOR WORKERS ???? Not much. And I'm not even counting ObamaCare or the rest of the new entitlements your government overlords are dreaming up on an almost daily basis. Your children's futures are being sold down the river. This country will be almost unrecognizable in another couple decades. It has to stop, and it has to stop NOW.
This is what we will soon reap from the big government seeds we have sown. This is the economic lunacy being promoted by the big government advocates today. Do you care ? They don't. Are you paying attention ? They aren't looking past the next election cycle to see how they can con you into voting for them. Are we so greedy that we only care about our own immediate needs, with no thought whatsover given for the next generation, or the one after that ? Could there be a more greedy abdication of fiscal responsibility than the one we are pawning off on the future ? They called my parents' generation the Greatest Generation for the sacrifices they made for this country. I think we may have to call my generation the Gimme Generation, because we are the most self-centered, spoiled, and selfish bunch of babies to ever come down the pike. We think everything is our "right," as if we are entitled to everything our little selfish hearts could ever desire, and we think someone else should pay for it all. What a bunch of losers.
I'll leave you with this bit of rhetorical nonsense from the mother of all nanny staters himself, President Obama. The lies in this statement are matched only by the blooming sense of universal entitlement that will soon destroy this country and is already ripping Europe apart. Here's our Panderer-In-Chief:
" But to be fair, a good deal of the other party’s opposition to our agenda has also been rooted in their sincere and fundamental belief about the role of government. It’s a belief that government has little or no role to play in helping this nation meet our collective challenges. It’s an agenda that basically offers two answers to every problem we face: more tax breaks for the wealthy and fewer rules for corporations.
The last administration called this recycled idea “the Ownership Society.” But what it essentially means is that everyone is on their own. No matter how hard you work, if your paycheck isn’t enough to pay for college or health care or childcare, well, you’re on your own. If misfortune causes you to lose your job or your home, you’re on your own. And if you’re a Wall Street bank or an insurance company or an oil company, you pretty much get to play by your own rules, regardless of the consequences for everybody else."
Got that ? If your paycheck isn't big enough, Obama will force someone else to make it bigger. If your health care is too expensive, Obama will force someone else to provide it for you. If you lose your job, Obama will force someone else to provide you an income. If you lose your house, Obama will force someone else to give you another one. And if you're a business, guess what ? You're going to pay for it all.
What could possibly go wrong ? You won't mind paying 70% in taxes in return for Obama's dreams from his father, will you ? Oh, and I almost forgot. When the businesses all go bankrupt due to these policies, the government will have you bail them out too, just like last time. The government will tell you the free market doesn't work, just like last time. Then the government will move to "fix" things that the government caused in the first place, just like last time, and the next thing you know, taxes will be 80%. But don't worry, the Nanny State has your back, so it's all good. Yes We Can...but not for long.