For this, in essence, is what the debt-ceiling fight is all about -- the inexorable and ultimately fatal growth of the welfare state. If you don't believe it, just look at President Obama's veiled threat to withhold Grandma's Social Security benefits if Congress doesn't let him borrow another $2 trillion or so to get himself safely past the 2012 election.Uncle Sam, sugar daddy
Showing posts with label welfare state. Show all posts
Showing posts with label welfare state. Show all posts
Monday, July 18, 2011
When did it become the primary function of the federal government to send millions of Americans checks?
Labels:
2012,
debt ceiling,
election,
federal government,
Obama,
President,
social security,
welfare state
Tuesday, July 13, 2010
New research shows bigger government means slower growth...
No sh*t! From WSJ:
Americans are debating whether to substantially expand the size of their government. As Swedish economists who live in the developed world's largest welfare state, we urge our friends in the New World to look carefully before they leap.Lessons From the Swedish Welfare State
Sunday, February 22, 2009
A Welfare Poem
I cross ocean,
poor and broke,
Take a bus,
see employment folk.
Nice man treat me
good in there,
Say I need to
get welfare.
Welfare say,
"You come no more,
We send cash
right to your door."
Welfare checks,
they make you wealthy,
Medicaid, it keep
you healthy!
By and by,
I get my money,
Thanks to you,
American dummy.
Write to friends
in Motherland,
Tell them "come
fast as you can."
They come in turbans
and Ford trucks,
I buy big house
with welfare bucks.
They come here,
we live together,
More welfare checks,
gets better and better!
Fourteen families,
they move in,
But neighbor's patience
wearing thin.
Finally white guy
moves away,
Now I buy his house,
and say,
"Find more aliens
for house to rent."
And in the yard
I put a tent.
Send for family
they just trash,
But they, too,
draw the welfare cash!
Everything is
very good,
And soon we
own the neighborhood.
We have hobby
it's called breeding,
Welfare pay
for baby feeding.
Kid's need dentist?
Wife's need pills?
We get free!
We got no bills!
Americans crazy!
Pay all year,
Just to keep that
Welfare here!
We think America
darn good place!
Too darn good for
the white man race.
If they no like us,
they can scram,
Got lots of room in Pakistan.
poor and broke,
Take a bus,
see employment folk.
Nice man treat me
good in there,
Say I need to
get welfare.
Welfare say,
"You come no more,
We send cash
right to your door."
Welfare checks,
they make you wealthy,
Medicaid, it keep
you healthy!
By and by,
I get my money,
Thanks to you,
American dummy.
Write to friends
in Motherland,
Tell them "come
fast as you can."
They come in turbans
and Ford trucks,
I buy big house
with welfare bucks.
They come here,
we live together,
More welfare checks,
gets better and better!
Fourteen families,
they move in,
But neighbor's patience
wearing thin.
Finally white guy
moves away,
Now I buy his house,
and say,
"Find more aliens
for house to rent."
And in the yard
I put a tent.
Send for family
they just trash,
But they, too,
draw the welfare cash!
Everything is
very good,
And soon we
own the neighborhood.
We have hobby
it's called breeding,
Welfare pay
for baby feeding.
Kid's need dentist?
Wife's need pills?
We get free!
We got no bills!
Americans crazy!
Pay all year,
Just to keep that
Welfare here!
We think America
darn good place!
Too darn good for
the white man race.
If they no like us,
they can scram,
Got lots of room in Pakistan.
Labels:
America,
illegal aliens,
illegal immigration,
welfare state
Monday, October 27, 2008
Monday, September 24, 2007
Right on Mark Twain
“The mania for giving the Government power to meddle with the private affairs of cities or citizens is likely to cause endless trouble, through the rivalry of schools and creeds that are anxious to obtain official recognition, and there is great danger that our people will lose our independence of thought and action which is the cause of much of our greatness, and sink into the helplessness of the Frenchman or German who expects his government to feed him when hungry, clothe him when naked, to prescribe when his child may be born and when he may die, and, in time, to regulate every act of humanity from the cradle to the tomb, including the manner in which he may seek future admission to paradise.” —Mark Twain
Labels:
big government,
Mark Twain,
socialism,
welfare state
Tuesday, August 21, 2007
Free corn
Student teaches a lesson to his teacher:
Several years ago I was supervising a beginning teacher in a city school system. One day during our end-of-the-day feedback conference, the young man gave a facial grimace and began to rub his back. I asked him if he had strained his back in the school lab. After a long period of silence, he sat down at his desk and explained that he had immigrated to the United States because of political problems in his native country. The discomfort in his back was caused by a bullet wound he had received while fighting the Communists who were trying to take over his country's government. He was then a member of the underground nationalist force.
Then he asked me a surprising question: "Professor, do you know how to catch a wild hog?" The question was completely out of context regarding the day's classroom and lab teaching. I replied, "I'm not sure what you are talking about. Tell me."
"First," he said, "you find out where the wild hogs are roaming and feeding and then you put some corn out in the field. Soon they will come to eat the corn. You keep putting out the free corn. More wild hogs keep coming to eat the corn."
"So what?" I said. "That's normal for any animal."
He said, "After the hogs get used to your free corn, you put up a length of fence along one side of the feeding area. The hogs get used to it. You keep giving them the corn. Then you put up another section of fence at right angles to the first. You keep giving them the corn. The hogs get used to the second fence. Then you put up another length of fence at right angles to the second section. You now have a U-shaped fenced area. The hogs get used to that section of the fence. You keep giving them free corn.
Then you put another section of fence with a gate in it, making a closed area except for the gate. You keep giving them corn. Now, the hogs no longer are out in the fields, working to find their own food. They keep coming into the area to eat the free corn. They get used to the fenced area with the open gate. Then, one day you slam shut the gate when the hogs are inside the fenced area. The wild hogs are caught - they are your prisoners."
I understood then that the wild hogs were really the people of his native country and that the free corn was the enticements that the Communists were giving to the people.
"That's correct," the young man said. "Now, the hogs will not get anything to eat unless you give them food. You are in control. They depend on you to feed them, or they will starve. They can't get out into the fields and forests anymore to find their own food. They have probably forgotten how, as it is. They are your servants, your prisoners. They must obey you. Or else they starve."
"The hogs," he said, "were so accustomed to having the free corn, that they ignored the building of the fences that would eventually trap them. When the gate slammed shut, it was too late for them to realize what they had been blind to. The free corn was enticing, so effortless to obtain, but eventually the cause of their loss of freedom. The fence had been built; the gate had been shut."
At this point in our conversation, the young teacher loudly exclaimed, "This is what I see happening in America today! People are being offered free corn by the government. People are being blind to the fences being built around them by the liberals - the socialists - and that is what frightens me! Just like it was happening in my homeland. The American people do not learn from history. And history shows that socialism/communism does not work. Take note of Russia. Has socialism been the best thing that ever happened to that country? Absolutely not! But socialism is what the American people are being fed, and they don't realize it. All they can focus on is the 'free corn.' They want more and more of the free corn. And this free corn is being fed to us little by little, and soon the gate will slam shut. I am very frightened, and also amazed, that the American people don't see what is being fed us, and for what purpose."
With that said, the young man sat down at his desk and continued to rub his painful back. And I was silent in my chair. For I could visualize the supposedly "free corn" being fed to our nation's people and our growing addiction to the "free corn". And I could see the gate being slammed shut.
We, the people of the United States of America, because of our ignorance of history, because of our addiction to the supposedly "free corn," could soon be these prisoners.
Several years ago I was supervising a beginning teacher in a city school system. One day during our end-of-the-day feedback conference, the young man gave a facial grimace and began to rub his back. I asked him if he had strained his back in the school lab. After a long period of silence, he sat down at his desk and explained that he had immigrated to the United States because of political problems in his native country. The discomfort in his back was caused by a bullet wound he had received while fighting the Communists who were trying to take over his country's government. He was then a member of the underground nationalist force.
Then he asked me a surprising question: "Professor, do you know how to catch a wild hog?" The question was completely out of context regarding the day's classroom and lab teaching. I replied, "I'm not sure what you are talking about. Tell me."
"First," he said, "you find out where the wild hogs are roaming and feeding and then you put some corn out in the field. Soon they will come to eat the corn. You keep putting out the free corn. More wild hogs keep coming to eat the corn."
"So what?" I said. "That's normal for any animal."
He said, "After the hogs get used to your free corn, you put up a length of fence along one side of the feeding area. The hogs get used to it. You keep giving them the corn. Then you put up another section of fence at right angles to the first. You keep giving them the corn. The hogs get used to the second fence. Then you put up another length of fence at right angles to the second section. You now have a U-shaped fenced area. The hogs get used to that section of the fence. You keep giving them free corn.
Then you put another section of fence with a gate in it, making a closed area except for the gate. You keep giving them corn. Now, the hogs no longer are out in the fields, working to find their own food. They keep coming into the area to eat the free corn. They get used to the fenced area with the open gate. Then, one day you slam shut the gate when the hogs are inside the fenced area. The wild hogs are caught - they are your prisoners."
I understood then that the wild hogs were really the people of his native country and that the free corn was the enticements that the Communists were giving to the people.
"That's correct," the young man said. "Now, the hogs will not get anything to eat unless you give them food. You are in control. They depend on you to feed them, or they will starve. They can't get out into the fields and forests anymore to find their own food. They have probably forgotten how, as it is. They are your servants, your prisoners. They must obey you. Or else they starve."
"The hogs," he said, "were so accustomed to having the free corn, that they ignored the building of the fences that would eventually trap them. When the gate slammed shut, it was too late for them to realize what they had been blind to. The free corn was enticing, so effortless to obtain, but eventually the cause of their loss of freedom. The fence had been built; the gate had been shut."
At this point in our conversation, the young teacher loudly exclaimed, "This is what I see happening in America today! People are being offered free corn by the government. People are being blind to the fences being built around them by the liberals - the socialists - and that is what frightens me! Just like it was happening in my homeland. The American people do not learn from history. And history shows that socialism/communism does not work. Take note of Russia. Has socialism been the best thing that ever happened to that country? Absolutely not! But socialism is what the American people are being fed, and they don't realize it. All they can focus on is the 'free corn.' They want more and more of the free corn. And this free corn is being fed to us little by little, and soon the gate will slam shut. I am very frightened, and also amazed, that the American people don't see what is being fed us, and for what purpose."
With that said, the young man sat down at his desk and continued to rub his painful back. And I was silent in my chair. For I could visualize the supposedly "free corn" being fed to our nation's people and our growing addiction to the "free corn". And I could see the gate being slammed shut.
We, the people of the United States of America, because of our ignorance of history, because of our addiction to the supposedly "free corn," could soon be these prisoners.
Wednesday, July 18, 2007
Here's what will happen to you if you vote Democratic in '08
YOUR FUTURE???
Norwegians have long accepted high taxes to finance their social welfare state, but a new survey indicates rising dissatisfaction and, in some cases, outright hatred of some taxes that are viewed as way too high and unfair.
Irritation Grows Over Taxes
Norwegians have long accepted high taxes to finance their social welfare state, but a new survey indicates rising dissatisfaction and, in some cases, outright hatred of some taxes that are viewed as way too high and unfair.
Irritation Grows Over Taxes
Thursday, June 07, 2007
Senate Amnesty Could Strain Welfare System
Newest Data Shows Latin American Immigrants Make Heavy Use of Welfare
Contact: Steven Camarota
sac@cis.org
202-466-8185
WASHINGTON (June 6, 2007) — As they debate legalization for illegal immigrants, Senators would do well to keep in mind the most recent data on welfare use by the people in question. According to the Department of Homeland Security, nearly 60% of illegal aliens are from Mexico and 80% of the total are from Latin America as a whole. A Center for Immigration Studies analysis of 2006 Census Bureau data, which includes legal and illegal immigrants, shows use of welfare by households headed by Mexican and Latin American immigrants is more than double that of native households. Among the findings:
If Illegals Stay, So Will Welfare Costs: The heavy use of welfare by immigrants from those parts of the world that send the most illegals is relevant to the question of whether to allow illegal immigrants to stay or, alternatively, to enforce the law and cause them to return home. The figures reported above are drawn directly from the best government data available, and show that allowing illegals to stay creates significant welfare costs. Many of the welfare costs described above are due to the presence of U.S.-born children, who are awarded U.S. citizenship at birth. Thus, the prohibition on new immigrants using some welfare programs makes little difference because their U.S.-citizen children will continue to be eligible. We estimate that nearly 400,000 children are born to illegal aliens each year.
Welfare Use by Working Immigrant Families: Most immigrants from Mexico and Latin America hold jobs. Their heavy use of the welfare system is due to the fact that a very large share have little education and as a result are able to earn only low incomes in the modern American economy, even though they work. The welfare system is geared toward helping low-income workers, especially those with children. Their education levels and the presence of U.S.-born children means welfare use will be extensive.
Tax Payments: Of course, immigrants, including illegal aliens, also pay taxes. However, because of the education level and resulting incomes levels of Mexican and Latin American immigrants, their tax payments are much less than natives on average. The same is true for illegal aliens. In a 2004 study, the Center for Immigration Studies estimated that illegal alien households used about $2,700 more services than they paid in taxes at the federal level only. We also found that households headed by a legal Mexican immigrant created a net fiscal drain at the federal level of roughly $15,000, and for those with only a high school degree the drain was a little over $3,700. However, those with more education were a fiscal benefit. A new Heritage Foundation study estimated the net fiscal drain at all levels of government created by households headed by high school dropout immigrants at about $20,000 a year. A 1997 National Research Council study found the same pattern – less-educated immigrants create a net fiscal drain and educated immigrants create a net fiscal benefit.
Data Source: The data for this analysis come from the Annual Social and Economic Supplement of the Current Population Survey (CPS) collected by the Census Bureau in March of 2006. It includes legal immigrants and most illegal immigrants. Like the Department of Homeland Security, we distinguish legal from illegal immigrants based on the socio-demographic characteristics of those who responded to the survey. By design our estimates of illegal immigration closely match those of DHS.
Results are also broken out for the following states: Arizona, California, Colorado, Florida, Georgia, Illinois, New Jersey, New York, North Carolina, and Texas.
Scroll down for Table: "Use of Welfare Programs Based on Nativity of Household Head"
The Center for Immigration Studies is an independent research institute which examines the impact of immigration on the United States.
Contact: Steven Camarota
sac@cis.org
202-466-8185
WASHINGTON (June 6, 2007) — As they debate legalization for illegal immigrants, Senators would do well to keep in mind the most recent data on welfare use by the people in question. According to the Department of Homeland Security, nearly 60% of illegal aliens are from Mexico and 80% of the total are from Latin America as a whole. A Center for Immigration Studies analysis of 2006 Census Bureau data, which includes legal and illegal immigrants, shows use of welfare by households headed by Mexican and Latin American immigrants is more than double that of native households. Among the findings:
- 51% of all Mexican immigrant households use at least one major welfare program and 28% use more than one program.
– 40% use food assistance, 35% use Medicaid, 6% use cash assistance.
- 45% of all Latin American immigrant households use at least one welfare program and 24% use more than one program.
– 32% use food assistance, 31% use Medicaid, 6% use cash assistance.
- 20% of native households use at least one welfare program and 11% multiple programs.
– 11% use food assistance, 15% use Medicaid, 5% use cash assistance.
- Among Mexican and Latin American households, welfare use is somewhat higher for households headed by legal, as opposed to illegal, immigrants. Thus legalization will likely increase welfare costs still further.
- 90% of Mexican and Latin American households have at least one worker. Their heavy welfare use reflects their low education levels and resulting low incomes – and not an unwillingness work.
– 61% of all Mexican immigrants have not graduated high school.
– 48% of all Latin American immigrants have not graduated high school.
- There is a common but mistaken belief that welfare programs are only for those who don’t work. Actually, the welfare system is designed to provide low-wage workers, or more often their children, things like food assistance and health care.
- It is the presence of their U.S.-born children coupled with their low education levels that explains why so many immigrant households use the welfare system.
- Most recently arrived immigrants are barred from using welfare programs and this would likely apply to those legalized by the Senate bill – however this is not true in every state, nor does not apply to all programs. Most important, the bar does not apply to the U.S.-born children of immigrants, who are immediately eligible.
- There are an estimated 1.4 million households headed by illegal aliens using at least one major welfare program. If even half these families returned to their home countries, the savings for taxpayers could be substantial.
- If we do not wish to make a large share of illegals return to their home countries, then the United States has to accept the welfare costs. There is no other option.
- Programs examined in the analysis are food stamps, WIC, school lunch, Medicaid, TANF, SSI, and public/rent-subsidized housing.
If Illegals Stay, So Will Welfare Costs: The heavy use of welfare by immigrants from those parts of the world that send the most illegals is relevant to the question of whether to allow illegal immigrants to stay or, alternatively, to enforce the law and cause them to return home. The figures reported above are drawn directly from the best government data available, and show that allowing illegals to stay creates significant welfare costs. Many of the welfare costs described above are due to the presence of U.S.-born children, who are awarded U.S. citizenship at birth. Thus, the prohibition on new immigrants using some welfare programs makes little difference because their U.S.-citizen children will continue to be eligible. We estimate that nearly 400,000 children are born to illegal aliens each year.
Welfare Use by Working Immigrant Families: Most immigrants from Mexico and Latin America hold jobs. Their heavy use of the welfare system is due to the fact that a very large share have little education and as a result are able to earn only low incomes in the modern American economy, even though they work. The welfare system is geared toward helping low-income workers, especially those with children. Their education levels and the presence of U.S.-born children means welfare use will be extensive.
Tax Payments: Of course, immigrants, including illegal aliens, also pay taxes. However, because of the education level and resulting incomes levels of Mexican and Latin American immigrants, their tax payments are much less than natives on average. The same is true for illegal aliens. In a 2004 study, the Center for Immigration Studies estimated that illegal alien households used about $2,700 more services than they paid in taxes at the federal level only. We also found that households headed by a legal Mexican immigrant created a net fiscal drain at the federal level of roughly $15,000, and for those with only a high school degree the drain was a little over $3,700. However, those with more education were a fiscal benefit. A new Heritage Foundation study estimated the net fiscal drain at all levels of government created by households headed by high school dropout immigrants at about $20,000 a year. A 1997 National Research Council study found the same pattern – less-educated immigrants create a net fiscal drain and educated immigrants create a net fiscal benefit.
Data Source: The data for this analysis come from the Annual Social and Economic Supplement of the Current Population Survey (CPS) collected by the Census Bureau in March of 2006. It includes legal immigrants and most illegal immigrants. Like the Department of Homeland Security, we distinguish legal from illegal immigrants based on the socio-demographic characteristics of those who responded to the survey. By design our estimates of illegal immigration closely match those of DHS.
Results are also broken out for the following states: Arizona, California, Colorado, Florida, Georgia, Illinois, New Jersey, New York, North Carolina, and Texas.
Scroll down for Table: "Use of Welfare Programs Based on Nativity of Household Head"
The Center for Immigration Studies is an independent research institute which examines the impact of immigration on the United States.
Labels:
amnesty,
illegal aliens,
illegal immigration,
U.S. Senate,
welfare state
Friday, November 17, 2006
America's Decline: Is It Fanciful?
The brilliant political observer and columnist Mark Steyn recently opined that over the last 40 years America has proven that she has no stomach for backing her rhetoric with action. Rather than stand up and fight she has opted to flee confrontation. It started with Vietnam and surrender has wound its way through to the 2006 elections where the populace irritated that the war of civilizations was upsetting their "soaps" and taking too long they again decided to flee; this time Iraq.
Daniel Pipes added to Steyn's piece writing that "Europe is Lost". Pipes posits that Europe is slowly becoming "Eurabia". Its ever-expanding Muslim population has become a problem so acute that the culture of Europe is being challenged by Islam.
The scenario is quite simple. The United States essentially won WWII. In the aftermath Europe had a "peace dividend" as it didn't have to spend the money to defend itself. America footed that bill. So it voted to spend that dividend on a nanny state that provided for cradle-to-grave dependence on a government essentially dedicated to socialism "light".
Those entitlements have "feminized" their populations, secularized their spirituality, plummeted their birth rate and neutered their self-reliance. All this made them ripe for a Muslim takeover because to keep their economy going they had to import workers from other countries; and those workers came from Islamic countries. It is estimated that Europe will be populated by a Muslims majority in 30 years unless a sea change is made and their native birth rate radically increases.
Faced with a similar need to fuel its economy and maintain its growth rate America has turned a blind eye to an influx of Christian Latinos primarily from Mexico. There is little fear that this influx will turn Muslim anytime soon. Likewise the fear of America becoming a part of the Islamic "caliphate" is remote. Yet that is not our only concern. Radical Islam is planning our demise by incineration if you read the papers. A nuclear winter is in our future as I don't believe Islam is willing to wait for our religious conversion to their 7th. Century dogma.
Faced with these many concerns Pipes made the following summation of Steyn's prescription for America:
Pared to its essentials, he counsels two things: First, avoid the "bloated European welfare systems," declare them no less than a national security threat, shrink the state, and emphasize the virtues of self-reliance and individual innovation. Second, avoid "imperial understretch," don't "hunker down in Fortress America" but destroy the ideology of radical Islam, help reform Islam, and expand Western civilization to new places. Only if Americans "can summon the will to shape at least part of the emerging world" will they have enough company to soldier on. Failing that, expect a "new Dark Ages" a planet on which much of the map is re-primitivized."
So how do we avoid becoming a "bloated European welfare system", "shrink the state" and "become self-reliant". Well as I sit here what we have to do is repeal Social Security, Medicare and various other entitlements and replace them with programs that rely on the capitalist system. Enacting personal accounts would be a giant step in making that a reality. First of all it will make the nation so much richer than it already is and that wealth in turn will eliminate so many of our social problems.
Recently I have run into so many intelligent people that are confused as to what America can do. Without exception I run into people who believe if China decides to sell it US securities (bonds) that will bankrupt America. They also believe America is up to its ears in debt. All things considered they believe we have no national net worth. This is such a fallacy it is downright laughable. If that were the case why are we still the world's reserve currency? Why is the stock market surging and setting new records every day. Why? Does that sound like an impending bankruptcy to you?
The confusion lies in the simple fact that America is so tolerant that it lets its politicians promise so much largesse to its citizens that if we let it they would sell our future for a vote. They would let us become a bloated European welfare state. Current history tells us that this problem is a problem of both political parties irrespective of their rhetoric.
These promises are not fatal. They universally present no problem if they are addressed. These promises are made to Americans (the people) from other Americans (the government which is the people). They have absolutely no effect upon the net worth of America. If they did our economy and stock market would be in the tank. The promises to the elderly (Social Security and Medicare) are promises from the young to the old; all Americans. The young work to pay for the benefits granted to the old. It is quite unfair considering that could all be avoided with personal accounts.
Personal accounts will empower the people. It will make them self-reliant. The fact that we won't need half of the budget (presently burdened with entitlements) means we would get the biggest tax cut in history (no need to fund that puppy). All of which begs the question can we afford the transition. Well that takes us back to the beginning. How much is America worth.
The Federal Reserve says households by themselves are worth upwards of $63 Trillion. The fact that consumer debt is owed to other Americans means for my analysis other Americans hold that receivable. Against this small fraction ($63 trillion) of America's real net worth we must subtract $2.2 Trillion which we owe real foreigners (like the Chinese (12%) and Japan (31%)). The balance of our $8.5 Trillion national debt is either a debt from one government agency to another ($3.7 Trillion) or debt owned by Americans ($2.6 Trillion).
So without considering the immense net worth that America possesses the net household net worth alone is at least $60 Trillion (after deducting the $2.2 Trillion owed foreigners). So if we replace Social Security and Medicare and install personal accounts we sure could finance the transition. All your Senators and all your Congressmen together with 3.3 million Federal workers already have personal accounts so what is the problem with our having them?
Don't be confused by 24/7 news. They need dramatic headlines to retain their ratings. They have distorted the belief of Americans in America so badly that 60% of the people believe the economy is going in the wrong direction in the midst of the biggest economic boom in history. The fact that Congress promises doesn't mean those promises will be fulfilled. We can change the law with a stroke of the pen and that is what we should do.
Which leads us back to Steyn's prescription for survival of self-reliance, shrinking government and repealing the welfare state. Enacting personal accounts will accomplish much of that. Standing up against your enemies will then be a lot more urgent when everyone has a nest egg to protect and a religious dogma to defeat.
by Dick McDonald
www.dickmcdonald.blogspot.com
www.thenewsocialsecurity.com
Daniel Pipes added to Steyn's piece writing that "Europe is Lost". Pipes posits that Europe is slowly becoming "Eurabia". Its ever-expanding Muslim population has become a problem so acute that the culture of Europe is being challenged by Islam.
The scenario is quite simple. The United States essentially won WWII. In the aftermath Europe had a "peace dividend" as it didn't have to spend the money to defend itself. America footed that bill. So it voted to spend that dividend on a nanny state that provided for cradle-to-grave dependence on a government essentially dedicated to socialism "light".
Those entitlements have "feminized" their populations, secularized their spirituality, plummeted their birth rate and neutered their self-reliance. All this made them ripe for a Muslim takeover because to keep their economy going they had to import workers from other countries; and those workers came from Islamic countries. It is estimated that Europe will be populated by a Muslims majority in 30 years unless a sea change is made and their native birth rate radically increases.
Faced with a similar need to fuel its economy and maintain its growth rate America has turned a blind eye to an influx of Christian Latinos primarily from Mexico. There is little fear that this influx will turn Muslim anytime soon. Likewise the fear of America becoming a part of the Islamic "caliphate" is remote. Yet that is not our only concern. Radical Islam is planning our demise by incineration if you read the papers. A nuclear winter is in our future as I don't believe Islam is willing to wait for our religious conversion to their 7th. Century dogma.
Faced with these many concerns Pipes made the following summation of Steyn's prescription for America:
Pared to its essentials, he counsels two things: First, avoid the "bloated European welfare systems," declare them no less than a national security threat, shrink the state, and emphasize the virtues of self-reliance and individual innovation. Second, avoid "imperial understretch," don't "hunker down in Fortress America" but destroy the ideology of radical Islam, help reform Islam, and expand Western civilization to new places. Only if Americans "can summon the will to shape at least part of the emerging world" will they have enough company to soldier on. Failing that, expect a "new Dark Ages" a planet on which much of the map is re-primitivized."
So how do we avoid becoming a "bloated European welfare system", "shrink the state" and "become self-reliant". Well as I sit here what we have to do is repeal Social Security, Medicare and various other entitlements and replace them with programs that rely on the capitalist system. Enacting personal accounts would be a giant step in making that a reality. First of all it will make the nation so much richer than it already is and that wealth in turn will eliminate so many of our social problems.
Recently I have run into so many intelligent people that are confused as to what America can do. Without exception I run into people who believe if China decides to sell it US securities (bonds) that will bankrupt America. They also believe America is up to its ears in debt. All things considered they believe we have no national net worth. This is such a fallacy it is downright laughable. If that were the case why are we still the world's reserve currency? Why is the stock market surging and setting new records every day. Why? Does that sound like an impending bankruptcy to you?
The confusion lies in the simple fact that America is so tolerant that it lets its politicians promise so much largesse to its citizens that if we let it they would sell our future for a vote. They would let us become a bloated European welfare state. Current history tells us that this problem is a problem of both political parties irrespective of their rhetoric.
These promises are not fatal. They universally present no problem if they are addressed. These promises are made to Americans (the people) from other Americans (the government which is the people). They have absolutely no effect upon the net worth of America. If they did our economy and stock market would be in the tank. The promises to the elderly (Social Security and Medicare) are promises from the young to the old; all Americans. The young work to pay for the benefits granted to the old. It is quite unfair considering that could all be avoided with personal accounts.
Personal accounts will empower the people. It will make them self-reliant. The fact that we won't need half of the budget (presently burdened with entitlements) means we would get the biggest tax cut in history (no need to fund that puppy). All of which begs the question can we afford the transition. Well that takes us back to the beginning. How much is America worth.
The Federal Reserve says households by themselves are worth upwards of $63 Trillion. The fact that consumer debt is owed to other Americans means for my analysis other Americans hold that receivable. Against this small fraction ($63 trillion) of America's real net worth we must subtract $2.2 Trillion which we owe real foreigners (like the Chinese (12%) and Japan (31%)). The balance of our $8.5 Trillion national debt is either a debt from one government agency to another ($3.7 Trillion) or debt owned by Americans ($2.6 Trillion).
So without considering the immense net worth that America possesses the net household net worth alone is at least $60 Trillion (after deducting the $2.2 Trillion owed foreigners). So if we replace Social Security and Medicare and install personal accounts we sure could finance the transition. All your Senators and all your Congressmen together with 3.3 million Federal workers already have personal accounts so what is the problem with our having them?
Don't be confused by 24/7 news. They need dramatic headlines to retain their ratings. They have distorted the belief of Americans in America so badly that 60% of the people believe the economy is going in the wrong direction in the midst of the biggest economic boom in history. The fact that Congress promises doesn't mean those promises will be fulfilled. We can change the law with a stroke of the pen and that is what we should do.
Which leads us back to Steyn's prescription for survival of self-reliance, shrinking government and repealing the welfare state. Enacting personal accounts will accomplish much of that. Standing up against your enemies will then be a lot more urgent when everyone has a nest egg to protect and a religious dogma to defeat.
by Dick McDonald
www.dickmcdonald.blogspot.com
www.thenewsocialsecurity.com
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