Government Grows, Private Sector Stalls: Things Going According To Obama Plan
Posted by Melissa Clouthier
on May 25 2010 Filed under Economy, News & Opinion.
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I am reminded of Margaret Thatcher’s pithy statement about socialism:
“The problem with socialism is that you run out of other people’s money.”
And that’s where we are right now. With the economy likely to take another dip here soon, we can ill-afford expanding the government and yet that’s exactly what we’re doing.
The USA Today has the dire news:
Paychecks from private business shrank to their smallest share of personal income in U.S. history during the first quarter of this year, a USA TODAY analysis of government data finds.
At the same time, government-provided benefits — from Social Security, unemployment insurance, food stamps and other programs — rose to a record high during the first three months of 2010.
Those records reflect a long-term trend accelerated by the recession and the federal stimulus program to counteract the downturn. The result is a major shift in the source of personal income from private wages to government programs.
The trend is not sustainable, says University of Michigan economist Donald Grimes. Reason: The federal government depends on private wages to generate income taxes to pay for its ever-more-expensive programs. Government-generated income is taxed at lower rates or not at all, he says. “This is really important,” Grimes says.
The recession has erased 8 million private jobs. Even before the downturn, private wages were eroding because of the substitution of health and pension benefits for taxable salaries.
And now, businesses are required to come up with even more health care benefits. And taxes will go up.
Pejman Yousefzadeh says this about the government (he’s talking about the oil spill, but it’s apropos here):
I was led to believe that a powerful and active federal government would be good for society at large, but unfortunately the federal government’s ability to be powerful and active is not as pronounced as its ability to be large, meddlesome when its help is not wanted, and slothful when its help is actually needed.
The American people have sought security in lieu of freedom. One comes at the expense of the other, always. Always.
This tension security versus freedom will increase as Baby Boomers get older and feel more afraid about caring for themselves. This entitled bunch has a long history of selfishness. I doubt the next decade will be any different.
Unions fight for their survival. Businesses stay small to avoid more taxation. The aging population grows. Government payouts grow. This is a prescription for economic disaster.
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This is unbelievably misleading! I have heard this over and over all morning and I for one cannot accept this. I receive a government pension for which I served over 20 years ion the military. I am now a state employee. To lump me in with the unemployed (especially the chronically unemployed), welfare recipients, and others collecting benefits and subsidies is unfair and reflects a lack of credibility for the conservative movement, of which I am a member! I hear this meme over and over. I have served my entire life, took opportunities to get a good education, always a good steward of taxpayer funds, but I am sick of hearing this and feeling like I should be guilty of something. Another manipulation of the data, which makes conservatives as non credible as the global warming kooks. This is one bridge too far as far as I am concerned and I will tell you this, I will question my allegiance to any movement or party, or anything else for that matter if it denegrates me, my viewpoint or my families livelihood. Now I can't stand the liberals or the conservatives, where does that leave me?
This is unbelievably misleading! I have heard this over and over all morning and I for one cannot accept this. I receive a government pension for which I served over 20 years ion the military. I am now a state employee. To lump me in with the unemployed (especially the chronically unemployed), welfare recipients, and others collecting benefits and subsidies is unfair and reflects a lack of credibility for the conservative movement, of which I am a member! I hear this meme over and over. I have served my entire life, took opportunities to get a good education, always a good steward of taxpayer funds, but I am sick of hearing this and feeling like I should be guilty of something. Another manipulation of the data, which makes conservatives as non credible as the global warming kooks. This is one bridge too far as far as I am concerned and I will tell you this, I will question my allegiance to any movement or party, or anything else for that matter if it denegrates me, my viewpoint or my families livelihood. Now I can't stand the liberals or the conservatives, where does that leave me?