What Buffett Doesn't Tell You
In 1900, America's TOTAL population was about 75,000,000 people.....less than 1/4 of the population today. To put that number in perspective....it is about the present number of people receiveing Social Security.....and not much more than the 50,000,000 people obtaining food stamps/aid.How America Has Changed Over Last 100 Years - 1900 to 2000
America was very fortunate to be the primary benficiary of the Industrial Age.... the jobs lost to efficiency driven by the tractor in agriculture were more than offset by the tens of millions of jobs created by Industrializaton. Initially, the primary beneficiaries of the Industrial Age was relatively low population America and more populated Europe. We collectively achieved a material standard of living unmatched in history....despite a few World Wars in between.
However, much of Africa and Asia never participated....we have all seen the pictures.
As America started to outsource jobs in the early eighties....we started compensating by borrowing money and creating different kinds of jobs...service jobs, education, financial jobs, health care jobs, etc.....and as a result, between 1980 and 2010 America's total public and private debt (not including entitlement obligations) mushroomed from about $5 trillion to OVER $50 trillion.
But the private credit bubble started to come to an end in 2008, for the first time in 30 years banks cut off credit to Americans. As a result, the tens of millions of jobs created by debt are evaporating...at the fastest rate in history. Compounding this problem is the fact that technology is now replacing jobs and human functioning, something Alstry identifies as Zombulation.
The America Industrial Economy is jobs dependent....jobs drive income and income drives the ability to consume the basic necessities for survival. Without jobs, people can't pay taxes, buy houses, obtain insurance, pay debts, or purchase food/fuel
In other words, the American Economic Model collapses without SUFFICIENT numbers of people holding jobs. This is not doom and gloom, simply a mathematical fact. And now that banks are cutting off credit to Main Street (the American Population) AND millions of jobs are being replaced by technology...how will America deal with a MASSIVE population that does NOT have jobs?
60,000,000 people on Social Security.....
50,000,000 people on Food Stamps/Assistance
15,000,000 people on unemployment and another 15,000,000 whose benefits expired.
20,000,000 people working for government that is running a HUGE deficit
Washington and Wall Street comitted over $23 trillion of TAXPAYER dollars bailing out the financial class (the top 10% of America) and NOT Main Street.......
as Main Street continues to collapse......
the CONVULSIVE question is....., in a system dependent on jobs to function....will more and more of America start to resemble much of Africa as the credit that built our present PONZI economy is withdrawn by Wall Street compounded by technology replacing MILLIONS OF jobs?
Detroit.....Baltimore....The Rust Belt......
and if so....who gets bailed out and who doesn't? Who gets to lie....and who doesn't?
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