Are you ready to leave the Matrix?????? 9.09
In FY2008, federal, state and local governments will spend $679 billion on means-tested welfare programs. Means-tested welfare programs provide: cash, food, housing, free or subsidized medical care, and targeted social services to poor and low income Americans. This high level of spending is not the result of a temporary, short-term surge in expenditures, but, rather, is the product of a steady incremental growth in spending over the last two decades.
Add in unemployment benefits and we are approaching $800 Billion.
When the government was collecting higher taxes, this money was basically a transfer from one group of Americans to another. But now, since so few are paying taxes and the tax receipts are so low, the money dores not really exist to pay welfare or unemployment. Basically 6% of GDP spending is simply money borrowed by government and given to the tune of $7000 for every man, woman and child in the poorest 1/3 of our population.
If the money was not given to the poor, our economy would contract rapidly as it never existed in the first place.....it was simply borrowed in 2008 leaving a legacy of debt we are now burdened with in 2009.
If the money was not given to the poor, WalMart's revenues would be much lower.....
A record 33.8 million people received food stamps in April, up 20 percent from a year earlier, as unemployment surged toward a 26-year high, government figures show. Spending also jumped, as the average benefit rose.
...so would the revenues many other grocery chains, and drug stores,drug manufacturers and hospitals etc.....
The irony is the revenues are capitalized in the stock market and turned into net worth for the rich. If the government did not borrow hundreds of billions of dollars and give it to the poor, the rich would be billlions of dollars poorer....think about that one for a second.
Recently, a greater and greater percentage of our economy is a direct result of borrowing money and spending it. It has now become such a large percentage, much of our current economy is basically one big ponzi scheme. If the money was not borrowed, there would not be much of an economy and our net worths would be much lower.
This is something Alstry has known for some time and knew once the private sector could no longer borrow, the private economy would contract rapidly......and rapidly it has....in a few years new home construction is down 80% and new auto sales are down 50% to name a couple.
Pretty soon, at the current rate of contraction, the private economy in America will be practically non existent.....and most of America will depend on government handouts to survive. For about a year and a half Alstry has been warning CAPs players this day was coming......it will soon be here......unless a war, pandemic, or other event arises to change the course of current policy.
Will it be by 9.09??????????????????????????????????????????????????????????