We Are Reaching The Tipping Point.
Consumption is starting to over take production as these charts show. Government spending is an exchange of confiscated, borrowed, or counterfeited dollars for a good or service that has been produced. These dollars represent certificates of purchase that can be exchanged for anything produced in the market. Legal tender laws decree that these dollars have to be accepted for all debts, public or private. The Fed has a legal monopoly on money production, and the fact that the Fed has counterfeited 3 trillion plus dollars since 2008 means that they have stolen 3 trillion dollars worth of goods and services from the private sector over the last four years.
Read this previous post, “Counterfeiting By The Federal Reserve, Although Legal, Still Results In Theft.”
The charts from this article, When Work Is Punished: The Tragedy Of America’s Welfare State., at Zerohedge.com, show our inescapable problem if we continue these policies. The productive private sector will be over run by the parasitic public sector. The tipping point is approaching quickly. If you want to gaze into a crystal ball and see our future, look at Greece. Read “Greek Unemployment Hits Escape Velocity, at Zerohedge.com.
Here are some quotes and charts from the article.
“But perhaps the scariest chart in the entire presentation is the following summarizing the unsustainable welfare burden on current taxpayers:”
- For every 1.65 employed persons in the private sector, 1 person receives welfare assistance
- For every 1.25 employed persons in the private sector, 1 person receives welfare assistance or works for the government.
“The punchline: 110 million privately employed workers; 88 million welfare recipients and government workers and rising rapidly.”
“And since nothing has changed in the past two years, and in fact the situation has gotten progressively (pardon the pun) worse, here is our conclusion on this topic from two years ago:”
- Capital Consumption, aka, Eating Our Seed Corn. (austrianaddict.com)
- The Fed’s Policies Are Counterproductive. (austrianaddict.com)
- A Look Over The Horizen At What Lies Ahead If We Continue Down The Central Planning Road. (austrianaddict.com)
- Why Do People Think The Government Is The Economy? (austrianaddict.com)