Best of the Week
Most Popular
1.U.S. Inner City Turmoil and Other Crises: Ron Pauls Predictions for 2015 - Dr_Ron_Paul
2. What’s In Store For Gold Price in 2015? - Ben Kramer-Miller
3.Crude Oil Price Ten Year Forecast to 2025: Importers Set to Receive a $600 Billion Refund - Andrew_Butter
4.Je ne suis pas Charlie - I am not Charlie - Nadeem_Walayat
5.The New Normal for Oil? - Marin_Katusa
6.Will Collapse in Oil Price Cause a Stock Market Crash? - OilPrice.com
7.UK CPI Inflation Smoke and Mirrors Deflation Warning, Inflation Mega-trend is Exponential - Nadeem_Walayat
8.Winter Storms Snow and Wind Tree Damage Dangers, DIY Pruning - Nadeem_Walayat
9.Oil Price Crash and SNP Independent Scotland Economic Collapse Bankruptcy - Nadeem_Walayat
10.U.S. Housing Market Bubble 2.0 Meet the Pin - James_Quinn
Last 5 days
Saudi Arabia Changes Kings, But Not its Oil Policy - 29th Jan 15
Crude Oil Price Bulls vs. Resistance Zone - 28th Jan 15
Acceleration Of Events With Rising Chaos – US Dollar Death Foretold - 28th Jan 15
The Fed and ECB Take the West back to when the Rich Owned Everything - 28th Jan 15
Washington's War on Russia - 28th Jan 15
Cyber War Poses Risks To Banks and Deposits - 28th Jan 15
Lies And Deception In Ukraine's Energy Sector - 28th Jan 15
EUR, AUD, GBP USD – Invalidation of Breakdown - 28th Jan 15
“Backup-Camera Envy” Is Driving This Unstoppaple Investment Trend - 28th Jan 15
The Great "inflated" Expectations for Gold, Oil, Commodities -- and Now Stocks - 28th Jan 15
How to Find the Best Offshore Banks - 28th Jan 15
There’s More to the Gold Price Rally Than European Market Fears - 28th Jan 15
Bitcoin Price Tense Days Ahead - 27th Jan 15
The Most Overlooked “Buy” Signal in the Stock Market - 27th Jan 15
Gold's Time Has Come - 27th Jan 15
France America And Religious Terror War - 27th Jan 15
The New Drivers of Europe's Geopolitics - 27th Jan 15
Gold And Silver - Around The FX World In Charts - 27th Jan 15
It’s Not The Greeks Who Failed, It’s The EU - 27th Jan 15
Gold and Silver Stocks Investing Basics - 27th Jan 15
Stock Market Test of Strength - 26th Jan 15
Is the Gold Price Rally Over? - 26th Jan 15
ECB QE Action - Canary’s Alive & Well - 26th Jan 15
Possible Stock Market Pop-n-drop in Store For SPX - 26th Jan 15
Risk of New Debt Crisis After Syriza Victory In Greece - 26th Jan 15
How Eurozone QE Works: A Guide to Draghi's News - 26th Jan 15
Comprehensive Silver Price Chart Analysis - 26th Jan 15
Stock Market More Retracement Expected - 26th Jan 15
Decoding the Gold COTs: Myth vs Reality - 26th Jan 15
Greece Votes for Syriza Hyperinflation - Threatening Euro-zone Collapse or Perpetual Free Lunch - 26th Jan 15
Draghi's "No-growth" QE Money for Stocks, Zilch for the Economy - 25th Jan 15
Unjust and Undeclared Wars - 25th Jan 15
The European Central Bank Commits Monetary Suicide - 25th Jan 15
Stock Market ECB EQE week - 25th Jan 15
Gold And Silver Timing Is Most Important Element - 25th Jan 15
The Best Way to Invest in the Next Alibaba Internet Stock IPO - 25th Jan 15
The Outpatient Surgery Business Rains Cash into Healthcare Stocks - 25th Jan 15
Stock Traders Flock to Gold GLD ETF - 24th Jan 15
10 Reasons Why You Need an Offshore Bank Account - 24th Jan 15
Goldman Sachs Blankfein - Regulation is Like Background Noise - 24th Jan 15
Gold in Euros Surges As ECB To Print Trillion Euros and Greek Election This Sunday - 24th Jan 15
Gold Bear Market Rally or New Bull ? - 24th Jan 15
Euro-zone 'QE already Working' Says IMF Lagarde - 23rd Jan 15
ECB and EU LTRO and QE for Dummies: Or, Make These Trades - 23rd Jan 15
Debt and Deflation: Three Financial Forecasts - There's More Than Falling Prices - 23rd Jan 15
Market Should Not Doubt' Mario Draghi ECB QE - 23rd Jan 15
Francs, Bonds, Barrels, and Bail-Ins - 23rd Jan 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

State of US Markets 2015 Report

The 47%, Could Romney Be Right?

ElectionOracle / US Presidential Election 2012 Sep 22, 2012 - 11:23 AM GMT

By: LewRockwell

ElectionOracle

Best Financial Markets Analysis ArticleMitt Romney has conceded that his thoughts, expressed at that Boca Raton, Fla., fundraiser, were "not elegantly" stated. Those mocking him might concede he has tabled one of the mega-issues of our time.

Can America continue down the path President Obama is taking us on, to a time soon and certain when a majority of wage-earners pay no income taxes but a majority of citizens receive federal benefits?


"There are 47 percent of the people who will vote for the president no matter what," said Mitt, "the 47 percent who ... are dependent upon government, who believe that they are victims, who believe the government has a responsibility to care for them, who believe that they are entitled to health care, to food, to housing, to you-name-it. ... These are people who pay no income tax ... ."

What was wrong with this?

One slice of that 47 percent who receive benefits are students who will pay taxes later. A larger slice are retirees on Social Security and Medicare who paid into both programs all their working lives.

But what was right about what Romney said was discerned two centuries ago by that governmental genius John C. Calhoun.

"The necessary result ... of the unequal fiscal action of the government is to divide the community into two great classes; one consisting of those who ... pay the taxes ... and bear exclusively the burden of supporting the government; and the other, of those who are the recipients of their proceeds, through disbursements, and who are, in fact, supported by the government; or, in fewer words, to divide it into taxpayers and tax consumers."

A nation sundered between taxpayers and tax consumers, said Calhoun, "must give rise to two parties and to violent conflicts and struggles between them, to obtain the control of the government."

Is that not a fair description of where we are today?

Sen. Gene McCarthy used to say every citizen has three duties: to bear arms in defense of his country, to vote and to pay taxes. Is it a good thing that this ideal is laughed at, that the draft is abolished, that scores of millions pay nothing in income taxes?

Retired Americans living on Social Security, exempt from taxes because their income is modest, are not the problem.

But in 2010, some 4.4 million Americans were on welfare rolls, 22 million on government payrolls, 23 million were receiving Earned Income Tax Credit checks, 44 million were on food stamps, 50 million were on Medicaid, and 70 million wage-earners were paying no income taxes.

For most of these folks, Obama's Party, which would expand benefits, tax the rich even more and redistribute the wealth, is their party. And understandably so.

By every standard, America is a far more prosperous country than in the 1950s. Yet, then, there were no food stamps. Today, 47 million Americans are on food stamps at an annual cost of $72 billion.

Does it not say something alarming when one in seven Americans cannot rely upon themselves or their families for their daily bread?

During the Chicago school strike, we learned that 86 percent of the 350,000 pupils were getting free or subsidized meals twice a day.

What kind of society have we become when children in a great city cannot rely on mothers or fathers for a bowl of cereal in the morning and a brown bag with a sandwich and apple in it for lunch?

Federal, state and local government together now consume 37 percent of the economy. Can we not see where this is leading us, by looking at Spain or Italy – or California?

In the Golden Land, the state tax burden has been shifted heavily onto the most successful, while state benefits have exploded.

Result: For the first time since California entered the Union, the young and middle class are moving out, not in, heading for Colorado, Arizona, Idaho and Nevada. And California has become the destination of choice for the immigrant poor, legal and illegal.

Yet, the November ballot has a proposal to raise the state income tax on the rich to the highest in the nation, 13.3 percent.

Romney indicated that folks deeply dependent on government are almost impossible for an advocate of smaller government to win over. Is he entirely off base when Washington, D.C., the most government-dependent city in America, went 93-7 for Obama in 2008?

In his 1935 State of the Union, Franklin Roosevelt himself warned about exactly what Mitt Romney is talking about.

"Continued dependence upon relief induces a spiritual and moral disintegration fundamentally destructive to the national fiber. To dole out relief in this way is to administer a narcotic, a subtle destroyer of the human spirit. ... The Federal Government must and shall quit this business of relief."

That greatest generation got off the narcotic of dependency.

Unfortunately, for tens of millions today, that narcotic has become indispensable. And "spiritual and moral disintegration" describes exactly the condition of all too many who have come to rely upon it.

No apologies needed, Mitt.

Patrick J. Buchanan [send him mail] is co-founder and editor of The American Conservative. He is also the author of seven books, including Where the Right Went Wrong, and A Republic Not An Empire. His latest book is Churchill, Hitler, and the Unnecessary War. See his website.

http://www.lewrockwell.com

© 2012 Copyright Patrick J. Buchanan / LewRockwell.com - All Rights Reserved
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.


© 2005-2014 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

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

Free Report - Financial Markets 2014