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alstry (35.35)

Is It Time To Think Yet?

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March 19, 2010 – Comments (4)

Roughly 50,000,000 Americans work for government or health care.  Over the past decade, if you factor the heatlh insurance of government workers, medicare, and medicaid, most of heatlh care dollars comes from government.  The 50,000,000 Americans that work for government/health are relatively very highly paid workers.

The spending from these workers generate a significant part of our GDP including auto sales, home sales, travel sales, and retail sales.  In addition, a significant portion of the finanicial services industry generates its income servicing these employees, their retirement accounts and their pension funds.

If you think about it, most of our economy today is dependent on these 50,000,000 Americans generating a high income, paying lots of taxes, creating large retirement accounts, and spending lots of money. 

THE PROBLEM:  Up until recently, the private economy generated enough revenues and taxes to support most of govenrment and health care(as these two components of the GDP were much smaller on a percentage basis)....then when revenues declined following the dot.com bust, we loaned tens of trillions of dollars to the private economy to maintain the revenue stream....but when there was nothing left to lend to, we cut off credit to the private economy and revenues declined to government.

Today, government is forced to borrow $2 trillion dollars per year simply to pay its employees and health care workers.  Last year, public companies borrowed a trillion and a half simply to stay in business. The strange part is government/Wall Street is primarily borrowing this money from our retirement accounts.  We are basically loaning money to government so government can pay government/ health care/Wall Street workers so such workers can spend and pay taxes as our savings is drained.

In addition, relatively very little is now available to the private sector so the private sector is shutting down and fewer as fewer jobs are available.  New home construction is down 80%, 2/3 of architects are unemployed, and private commerical construction has come to a virtual halt.  We have 50,000,000 Americans without insurance......40,000,000 Americans on food stamps, and approaching 20,000,000 receiving unemployment.

The strange part is we really don't have the money to pay for much of this yet government and health care workers still enjoy a relatively consistent lifestyle while much of the rest of the nation suffers.

Soon you too will understand, if govenrment is not borrowing from our retirement accounts and spending heavily by paying large salaries to politicians and its workers...tax receipts to government would evaporate, much of our economy would implode, and we would simply have to restructure.

The strange part is we now have a two class system in America...those that get to benefit from government borrowing from our retirement accounts....and those that don't......the Constitutional question is why don't all Americans benefit equally from borrowinig form our retirement accounts and not simply government, Wall Street and health care workers.

Practically speaking, is this really much different than why we prosecuted Bernie Madoff or Tom Petters??????

Soon you too will understand when you start to think.

4 Comments – Post Your Own

#1) On March 19, 2010 at 8:58 AM, alstry (35.35) wrote:

Next time a government economist tells you we are in a recovery...you may want to show them these links:

North Texas Home Foreclosures Hit New Record Monthly High

Will Los Angeles Go Broke?

Atlanta Loses 19,900 Construction Jobs 

About 1 in 4 California Lack Health Insurance

 

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#2) On March 19, 2010 at 9:20 AM, jrod87 (84.14) wrote:

Nice blog alstry Maby a few links on where the facts of these claims are found. Such claims as "New home construction is down 80%, 2/3 of architects are unemployed, and private commerical construction has come to a virtual halt.  We have 50,000,000 Americans without insurance......40,000,000 Americans on food stamps, and approaching 20,000,000 receiving unemployment." Im not contesting that this is accurate but when reading your blog it would be nice to have a link or two from a reliable source on where to find this. Other that that you make a good point, im only 22 but im smart enough to know tat social security is a Pyrimid scheme and that the Gov. thinks that's how we do business. Makes sense that they would pay there Overhead in the same manner.

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#3) On March 19, 2010 at 10:37 AM, alstry (35.35) wrote:

If you google the data you request, much of it can be obtained pretty easily.

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#4) On March 19, 2010 at 8:18 PM, Textextextex (< 20) wrote:

If you think Madoff ran a huge scam, Amway has ripped off millions of people for several decades, to the tune of 10s of billions of dollars.
Amway is a scam, and here's why: Amway pays out as little money as they can get away with, so they support the higher level IBOs ripping off their downline via the tool scam. 
As a result, about 99% of IBOs operate at a net loss, while the top 1% make several TIMES more from their Amway tool scam than from the Amway products. This was made illegal in the UK in 2008, but our FTC is unable to pull their heads out of their butts to stop it here. 
Read about it on my blog, I suggest you start here: http://thenetprofitgroup.yolasite.com and forward the information to everyone you know, so they don't get scammed.

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