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alstry (36.32)

Welfare SAVES America From DEPRESSION!!!!

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June 04, 2009 – Comments (9)

From USA Today...

Benefits, such as Social Security, food stamps, unemployment insurance and health care, accounted for 16.2% of personal income in the first quarter of 2009, the Bureau of Economic Analysis reports. That's the highest percentage since the government began compiling records in 1929.

In all, government spending on benefits will top $2 trillion in 2009 — an average of $17,000 provided to each U.S. household, federal data show. Benefits rose at a 19% annual rate in the first quarter compared to the last three months of 2008.

THINK!!!!!

If it wasn't for Gov't Benefits.....GDP would immediately contract 16% and America would be in a Depression.

And for those of you idiots that don't think we are ALREADY in a Depression.....ask youself how can a nation where the average Family only make $50K per year spend $17K on benefits?????

9 Comments – Post Your Own

#1) On June 04, 2009 at 8:13 PM, bridgeboy0 (30.76) wrote:

You forgot something.

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#2) On June 04, 2009 at 8:34 PM, dickseacup (66.79) wrote:

The government cannot spend anything it doesn't first take from someone/somewhere else. Whether that be contemporaneous with the spending, or through the magic of monetizing the debt, thereby stealing it from future generations/productive citizens.

TANSTAAFL.

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#3) On June 04, 2009 at 8:35 PM, bigroosterdaddy (< 20) wrote:

Didn't I read yesterday that you were going to start being positive?  What happened?

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#4) On June 04, 2009 at 8:39 PM, jatt22 (40.83) wrote:

http://www.321gold.com/editorials/acamarjournal/acamarjournal060409.html  just wanna share  this article cuz there r some other pplz too who think just like alstry  . this article is less abt gold an more abt american economic puzzles .

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#5) On June 04, 2009 at 8:52 PM, UKIAHED (34.45) wrote:

In all, government spending on benefits will top $2 trillion in 2009 — an average of $17,000 provided to each U.S. household, federal data show. Benefits rose at a 19% annual rate in the first quarter compared to the last three months of 2008.

THINK!!!!!

If it wasn't for Gov't Benefits.....GDP would immediately contract 16% and America would be in a Depression.

I’ll not argue the thesis of this – it is (I believe) correct.  But – there is not a 1 to 1 ratio here.  If the benefits never existed – then the tax that pays those benefits would not exist.  So, the net proceeds to the Social Security Administration, and the unemployment offices, would not be paid – and thus would end up as part of US household disposable income. 

How much would the workers and employers have in their pockets if Social Security did not exist?

$672 Billion

How much would the workers and employers have in their pockets if Medicare did not exist?

$157 Billion

How much would employers save if they did not pay unemployment tax?

$49 Billion

So, if all benefits stop – then GDP would drop by about 9%

Like I said at the start – I agree with the thesis – GDP would drop if no benefits.  I gotta say – I do love the brilliance of the social engineering that Social Security and Medicare represent – without them (and the savings/contributions represented by all the taxes of the last 50+ years) then the boom/bust cycle may just be more intense.  Take the current drop in GDP, add the 9% drop if there were no benefits – and you do indeed have a big depression.  Thank goodness for all those benefits!  I believe that you may have just proven the benefits of the economic platform of liberals – huh – go figure…

Now, if only we could get Social Security/Medicare long-term viable…but that is another topic!

Cheers

 

 

 

Thank goodness for all those benefits!  I believe that you may have just proven the benefits of the economic platform of liberals – huh – go figure…

(BTW – this line was a joke)

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#6) On June 04, 2009 at 9:06 PM, alstry (36.32) wrote:

Now its time for you guys to really think...those funds were borrowed...not taxed...hence the paradox of deficit.

Deficit or Depression???

Deficit leads to higher interest rates leads to depression.

All roads lead to depression now......

BTW....this is a positive since we averted a depression.

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#7) On June 04, 2009 at 11:01 PM, russiangambit (29.40) wrote:

Mish has the same info in his article today. It is really mind-blowing:

"As economic conditions deteriorate and unemployment continues to soar, one in nine Americans are now on food stamps. Moreover, a staggering one of every six dollars of Americans' income is now coming in the form of a federal or state check or voucher."

http://globaleconomicanalysis.blogspot.com/

But no worries, I am sure the market will go up tomorrow because we stopped counting thousands of people as unemployed (been unemployed for too long) and our unemployment stats magically improved by 10K.

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#8) On June 04, 2009 at 11:57 PM, usmilitiadude (32.14) wrote:

Thanx, yur payin for my grillz. ;)

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#9) On June 05, 2009 at 12:13 AM, ralphmachio (28.60) wrote:

It's like a terminal cancer patient telling the doctor, I'm fine, you're being negative. 

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