Best of the Week
Most Popular
1.Election Forecast 2015 - Opinion Polls Trending Towards Conservative Outright Win - Nadeem_Walayat
2.UK Solar Eclipse - End Time Sign, Judgement Day, Doomsday! - Nadeem_Walayat
3.Gold And Silver - When Will Precious Metals Rally? Not In 2015 - Michael_Noonan
4.Preparing for the Next Stocks Bear Market - Forecast 2015-2016 - Gary_Savage
5.Is a Stock Market Crash Imminent? - David Eifrig
6.Gold Price Slumps as US Dollar Soars, What's Next? - Nadeem_Walayat
7.US Dollar Forex Pairs and Gold Chartology - Rambus_Chartology
8.Election Forecast 2015: The Day Labour Lost the General Election - Nadeem_Walayat
9.The ECB Should End QE Next Month - EconMatters
10.Silver Price Poised to Surge - Zeal_LLC
Last 5 days
Reflections in a Golden Eye - Gold Market Rejection, Repatriation and Redemption - 28th Mar 15
Stock Market Inflection Point - 28th Mar 15
Gold And Silver - What Moved Price? Bab el-Mandeb And Uranus Square Pluto. What?! - 28th Mar 15
Stock Market Investment Parachutes; Do You Have Yours? - 28th Mar 15
Peak Gold Misunderstanding, is Gold About to Run Out? - 28th Mar 15
Deflation Watch: Key U.S. Economic Measures Turn South - 27th Mar 15
The Hard-Earned Truth About Recreational Real Estate - 27th Mar 15
Bitcoin Price Still in Important Territory - 27th Mar 15
Stocks Bear Market Conditions - Index Market Range Warning - 27th Mar 15
BEA Leaves Q4 2014 U.S. GDP Growth Essentially Unchanged at 2.22% - 27th Mar 15
Brazil Economy Victim of Vulgar Keynesianism - 27th Mar 15
Gold to Fuel Silver Price Upleg - 27th Mar 15
Gold and Silver Stocks Will Rise Again! - 27th Mar 15
Risk of ‘World War’ between NATO and Russia on Ukraine as Yemen Bombed - 27th Mar 15
FOMC Minutes Turned The Gold Tide - 27th Mar 15
Sheffield Hallam Election Battle 2015 - Lib Dems Go to War Whilst Labour Sleeps - 27th Mar 15
Gold Effect On Mining & Shale Wasteland - 27th Mar 15
How Stock Investors Should Play the 2016 Presidential Race - 26th Mar 15
MidEast Energy Alert: Why the Crisis in Yemen Could Get Ugly Very Fast - 26th Mar 15
Stock Market Downward Spiral of Dumbness - 26th Mar 15
The Monetary Approach Reigns Supreme - 26th Mar 15
Stock Market Large Gap Down, Despite the Algos' Push Back - 26th Mar 15
Crude Oil Surges, Gold price Spikes as Middle East Tensions Escalate - 26th Mar 15
The U.S. Housing Market Recovery Is Fabricated Optimism - 26th Mar 15
Why Yemen Is The Next Saudi-Iranian Battleground - 26th Mar 15
The Crude Oil Price Crash and China Economic Slow Down - 26th Mar 15
Global Financial Markets Are More Distorted Than Ever Before - 26th Mar 15
One More Stock Market Rally and Then a Huge Drop Expected - 26th Mar 15
Danger Will Robinson - Stock Market Crash Warning - 25th Mar 15
Learn the Basics of Corrective Elliott Waves - 25th Mar 15
Why CNBC Is Hazardous to Your Financial Health! - 25th Mar 15
Will Your Retirement Accounts Survive The Coming Tax Code "Revolution"? - 25th Mar 15
US Dollar - Americas Phoenix - 25th Mar 15
California’s Epic Drought: Only One Year of Water Left! - 25th Mar 15
What’s Wrong With Silver? - 25th Mar 15
SPX Futures Appear Weak. WTIC and Gold May Be at Max Retracement - 25th Mar 15
We’re at the Dawn of a “New Energy Age” - 25th Mar 15
A Very Weak U.S. Economic Recovery - 25th Mar 15
Zero UK CPI Inflation Rate Prompts Deflation Danger Propaganda For Fresh Money Printing - 25th Mar 15
Stock Market NYSE Hi-Lo Index Aggressive Sell Signal - 24th Mar 15
Palladium Commodity Price Forecast - 24th Mar 15
Bitcoin Price Gearing Up for a Fall - 24th Mar 15
Safety Deposit Boxes In UK Being Closed By ‏HSBC – Not Closing Gold Vaults - 24th Mar 15
Japan Short Term Gains And Long Term Disaster - 24th Mar 15
China's Fragile Evolution - 24th Mar 15
David Cameron Announces Resignation Even Before Being Re-elected, Handing Labour 6 Seats - 24th Mar 15
City of London's Ownership of American Colonies - 24th Mar 15
Stock Market Reversal May Have Begun - 24th Mar 15
Casey Gathers Top Gold Experts to Share Secrets for Making Money in Any Market - 24th Mar 15
Thoughts on The Current Crude Oil Market - 24th Mar 15
U.S. Economy Still on Life Support - What Your Governments Hiding From You... - 24th Mar 15
UK Election Forecast 2015 - Budget Bribes Fail, SNP Insurgency Catastrophe - Video - 24th Mar 15
Is Stock Market Minor Top Taking Hold? - 23rd Mar 15
Greece and EU Running Out of Time as Bank Runs Intensify - 23rd Mar 15
Stock Market Slightly Negative Expectations Following Last Week's Rally - 23rd Mar 15
This Rising Interest Rates Play Could Make You a Quick 55% - 23rd Mar 15
Platinum Commodity Price False Break Low - 23rd Mar 15
The Real Reason The American Dream is Unraveling - 23rd Mar 15
Election Forecast 2015 - Budget Bribes Fail to Impress Voters, Tory's Lose Seats in Opinion Polls - 23rd Mar 15
Silver Price Reliance During U.S. Dollar Rally - 23rd Mar 15
Gold Price Outlook Dramatic Improvement Following US Dollar Topping Action - 23rd Mar 15
Wall Street Doesn't Want You to Do This - 22nd Mar 15
The "Natural Interest Rate" Is Always Positive and Cannot Be Negative - 22nd Mar 15
Exploring The Gold Market: The Fed, The Charts. The COTS and GLD - 22nd Mar 15
Stocks Bull Market Continues - 22nd Mar 15
Gold And Silver - China's AIIB Spells U.s. Dollar Demise, Not Clear For Precious Metals - 22nd Mar 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

US Economy Still on Life Support

U.S. Government Has Become An Overgrown Monstrosity

Politics / US Politics May 25, 2010 - 09:48 AM GMT

By: Pravda

Politics

Best Financial Markets Analysis ArticleToday, the number of Americans who are able to financially survive without any reliance on the U.S. government whatsoever is declining at a staggering rate. Whether it is through direct handouts, entitlement programs, student loans, government bailouts, government contracts or direct employment, the truth is that now a solid majority of the American people are at least partially dependent on the federal government for their economic survival.


The sad thing is that the majority of the American people say that there is too much government in their lives when opinion polls are taken, but if you try to take the government check that they are getting away from them those same people will scream bloody murder. But the truth is that it is getting to be really, really hard to be completely independent of the U.S. government economically. That is because the U.S. government has their hands in almost everything. The ideal of a "limited federal government" has long since faded away. Very few people seem to believe in it anymore. Instead, Americans today look to the federal government as the answer to all of our problems, as the provider of all of our needs, and as the regulator of every single detail of our lives.

The U.S. government has become the "Big Mother" that we all scramble to for a handout when we get into trouble.

When you sit down and really analyze it, you quickly realize that there is no way that the U.S. government can be extricated from the U.S. economy now. Instead of the free enterprise system that we once had in this country, today we have a situation where the U.S. government has become the very core of the economy. It is the hub around which everything else in the economy revolves.

You don't believe this?

The following are 11 signs that the U.S. government has become an overgrown monstrosity that almost every American is dependent upon for economic survival....

#1) The Explosion Of Government Handouts

39.68 million Americans are now on food stamps. Millions of others are completely dependent on the extended unemployment benefits that they are receiving. Millions of other Americans are able to survive financially because of the dozens of other welfare programs that the U.S. government subsidizes. More Americans are receiving some form of welfare than ever before in history, and each month the numbers continue to go up. Could there come a day when we all receive government handouts every month?

#2) The Entitlements Programs That Threaten To Destroy U.S. Government Finances

Entitlements are the single biggest U.S. government expense. These programs include Social Security, Medicare, Medicaid and other social Ponzi schemes. Tens of millions of Americans receive government assistance through these programs. In fact, nearly 51 million Americans received $672 billion in Social Security benefits in 2009. We all have friends or family members who receive these kinds of payments. But cutting so many people a check year after year is slowly but surely destroying U.S. government finances. According to an official U.S. government report, rapidly growing interest costs on the national debt together with spending on major entitlement programs will absorb approximately 92 cents of every dollar of federal revenue by the year 2019. That is before a penny is spent on anything else. This is clearly not a sustainable financial situation by any definition, but who wants to tell tens of millions of Americans that their checks are going to be reduced?

#3) The U.S. Government Is Now Even Paying Mortgages

Yes, you read that right. As part of the "stimulus" package, the U.S. government is going to send money to some of the states that were hit the hardest by the real estate crisis. So what is that money going to be used for? Well, Florida, Michigan, California and Arizona have all announced that they plan to use $1.4 billion the Obama administration is sending their way to help the unemployed and the "underwater" pay their mortgages.

#4) Without The Student Loan Program A Huge Percentage Of College Students Would Not Get An Education

The federal student loan program (which was recently entirely nationalized) helps millions of college students pay for their education. Without this assistance by the government, a lot less students would be going to college. In fact, many of you that are reading this article directly benefited from the federal student loan program.

#5) The Bailout Of AIG

One of the biggest insurance companies in the world, AIG, would not be in existence today if not for direct federal government intervention. It kind of makes you wonder what George Washington and Thomas Jefferson would think about a federal government that hands big bags of cash to a giant insurance company so that it can survive. Whether it was so they could pay off their debts to Goldman Sachs or whether it was so that they could keep paying out record-setting bonuses, the truth is that AIG would not have made it without the federal government stepping in.

#6) The "Too Big To Fail" Banks

But it wasn't just AIG that got bailed out. A number of big banks may have gone under if not for the U.S. government. The U.S. government decided that they were "too big to fail". Well, what about all the small banks that are going under? The truth is that they are "too small to bother with". We now live in a nation where the U.S. government is the one who decides which banks live and which banks die like dogs. Doesn't that just make you feel all warm and fuzzy?

#7) The Bailout Of General Motors

But not only does the federal government bail out financial institutions - it is also now in the car business. Yes, grand old General Motors may have ended up on the scrap heap of history if not for the U.S. government stepping in. So if you work for General Motors or if you work for any company that does business with General Motors, you can thank Uncle Sam for the fact that you still have a job.

#8) The Bailouts Of Fannie Mae and Freddie Mac

If the U.S. government had not bailed out Fannie Mae and Freddie Mac, we may not have much of a mortgage industry at this point at all. According to Inside Mortgage Finance, government-related entities backed 96.5% of all home loans during the first quarter of 2010, which was up from 90% in 2009. So if you borrowed money to buy a home over the past couple of years, there is a very strong likelihood that the U.S. government was involved.

#9) The U.S. Government - The Nation's Biggest Employer

According to the Bureau of Labor Statistics, approximately 2 million civilians work for the federal government, excluding the Postal Service. When you add in all U.S. military personnel, that number goes much higher.

The truth is that as the government continues to expand (become more bloated), more Americans than ever are hopping aboard the gravy train. Today, the average federal worker now earns about twice as much as the average worker in the private sector. So if you want to do little work, produce little of real value and enjoy super cushy benefits, maybe you should apply for a job with the federal government too.

#10) Millions Of Americans Are Employed By Firms That Rely On Government Contracts

When considering the impact of the U.S. government on the economy, you can't forget the hundreds of companies that would go out of business if their U.S. government contracts were taken away. There are literally millions of people who work for companies that do business with the government. If the government disappeared it would cause economic chaos for those firms. The truth is that a whole lot of people make a really good living plugging into the sweetest revenue source of them all - the U.S. government.

#11) The U.S. Government Takeover Of The Health Care System

The U.S. government takeover of the health care system is going to fundamentally change the economics of the health care industry. The U.S. government will now play a major role in deciding which hospitals get built and which do not. Approximately 17% of U.S. GDP is spent on health care, and now the U.S. government has unprecedented control over where that money goes. Over a dozen new taxes have been established by the new health care reform law, and the U.S. government is going to pour an unprecedented amount of money into the system. So will this result in all of us getting better health care? We'll just have to wait and see.

The truth is that the Founding Fathers never envisioned a federal government that completely dominated that national economy. But that is what we have got. As of now, only a very small percentage of Americans are still able to say that they are completely financially independent of the U.S. government.

You see, in economic terms the U.S. government is not just the elephant in the room. It is the elephant that sat on the room and nearly suffocated everything else out of existence.

As Americans, we live in an economy that is so intertwined with the government that it is impossible to separate the two anymore.

But the really bad news is that the U.S. government is in massive financial trouble. According to one new report, the U.S. national debt will reach 100 percent of GDP by the year 2015. Many economists regard that as an incredibly dangerous threshold to cross.

If U.S. government finances collapse, it will mean the collapse of the entire U.S. economy as well. There is simply no separating the two. And considering the fact that the U.S. government has piled up the biggest mountain of debt in the history of the world, things don't look promising.

America is headed for an unprecedented economic collapse, and the U.S. government is leading the way. If you can get financially independent, now is the time to try to do that, but the reality is that we will all feel massive economic pain when this thing comes crashing down.

Michael Snyder

The Economic Collapse

Pravda.ru

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Pravda Archive

© 2005-2015 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

John Horstman
20 Jan 11, 21:05
payroll total

What is the daily payroll for government .(one day total)

Why don't they eliminate presidents birthdays as paid holidays and use the money to pay down the deficit.

Allow employees to take the day off without pay.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Free Report - Financial Markets 2014