Best of the Week
Most Popular
1.Is the Stocks Bull Market Over? Dow Trend Forecast into End January 2015 - Nadeem_Walayat
2.Gold and Silver Stocks Apocalypse Now, Bear Market Review - Rambus_Chartology
3.NHS Baldrick Plan to Spread Ebola Across UK - Sheffield, Newcastle, Liverpool, London Hospitals - Nadeem_Walayat
4.Ebola Terror Threat Suicide Bio-Weapons Threatens Multiple 9/11's, Global Plague - Nadeem_Walayat
5.Second-Richest Man Says Mortgages Now a "No Brainer" - Dr. Steve Sjuggerud
6.Gold And Silver Still No End In Sight - Michael_Noonan
7.NHS Baldrick Plan to Spread Ebola Across UK - Sheffield, Newcastle, Liverpool, London Hospitals - Nadeem_Walayat
8.The Gold Bug is Set to Bite Back - EWI
9.How Alibaba Could Capitalize on the EBay-PayPal Split - Frank_Holmes
10.The Consequences of the Economic Peace - John_Mauldin
Last 5 days
Stocks Bear Market Indicator Is Off the Mark - 20th Oct 14
Stock Market Ideal Turning Point is at Hand - 20th Oct 14
Investors Quit Complaining, The Environment is Perfect Right Now - 20th Oct 14
Ebola Armageddon Could Trigger a Rebirth in Gold and Silver Prices - 20th Oct 14
Gold vs Euro Risk Due To Possible Return of Italian Lira - Drachmas, Escudos, Pesetas and Punts? - 20th Oct 14
Stocks Rebounded Following Recent Sell-Off, But Will It Last? - 20th Oct 14
U.S. Responsible for West Africa Ebola Outbreak Says Liberian Scientist - 20th Oct 14
Stock Market Intermediate B Wave has Started - 20th Oct 14
Gold Stocks Analysis – FNV, CG, NCM, SBM - 19th Oct 14
Stock Market Primary IV Wave Counter Trend Rally - 19th Oct 14
Gold And Silver - Financial World: House Of Cards Built On Sand - 18th Oct 14
Anatomy of a Stock Market Sell-Off - 18th Oct 14
Why OPEC Has Declared an Oil War on Russia - 18th Oct 14
Gold and Silver Extreme Shorting Peaks - 18th Oct 14
Bitcoin Price Fall to $350? - 18th Oct 14
Tesco Supermarket Crisis Worse To Come as Customers Vanish! - 18th Oct 14
Sheffield Roma Crisis School Place Application's Fraud Perfect Storm - 17th Oct 14
Stock Markets, Commodities and Indicators - 17th Oct 14
“Save Our Swiss Gold ” - Game Changer For Gold? - 17th Oct 14
How to Trade the Ebola Stock Market Sell-Off - 17th Oct 14
When... Not if... Crude Oil Price Drops Below $70 - 17th Oct 14
Either You're The Butcher or You're The Cattle - 17th Oct 14
Gold Benefits from Market Uncertainty - 17th Oct 14
Stock Market Pullback Underway, Euro downside, Commodities - 17th Oct 14
Stock Market Seven Year Cycle and A Correction Ahead? - 17th Oct 14
Three Ways to Play Uranium: Top Stock Picks - 17th Oct 14
America Flirts With Deflation - 17th Oct 14
Why the Fed Should Consider Delaying the End of QE - 16th Oct 14
Gold Prices Since 9-11 - 16th Oct 14
The Inflation Imputation, Dear Saver, May You RIP - 16th Oct 14
Flight To Safety - Gold Rises As Stocks, European Bonds Sink - 16th Oct 14
The March Of History And The End Of Nations - 16th Oct 14
Stocks Bear Markets Move Fast and Are Intensely Emotional - 16th Oct 14
Stocks Got Their Piece – Now It’s Our Turn - 16th Oct 14
Why This Stock Market Selloff Is the Next "Buy the Dip" Opportunity in Stocks - 15th Oct 14
Possible Stock Market Runing Correction - 15th Oct 14
Get Your Tactics Ready for the Ebola Stock Market Event - 15th Oct 14
Secret Scheme To Manipulate Silver Price - Lawsuits Against Banks Proceed - 15th Oct 14
Stocks Bull Market Over? Trend Forecast to End Jan 2015 - Video - 15th Oct 14
Stock Market Dow The Contrarian Play - 15th Oct 14
The Ukraine, As We Know It, Is Gone Forever - 15th Oct 14
We Can Police the Dark Web / Bitcoin - 15th Oct 14
The Safest Stocks in the World - 14th Oct 14
Building an Ark: How to Protect Public Revenues From the Next Financial Meltdown - 14th Oct 14
9 Ways to Retire Rich - 14th Oct 14
Silver, Warfare and Welfare - 14th Oct 14
Swiss Gold Referendum “Propaganda War” Begins - 14th Oct 14
What Happened To The Fourth Estate? - 14th Oct 14
How To Blow Up OPEC In 3 Easy Steps - 14th Oct 14
Investment Myth - Wars are bullish/bearish for Stocks - 14th Oct 14
Powerful Reversal and Shakeout in the Junior Gold Mining Stocks at May Lows Around $33 - 13th Oct 14
When The Economy Went Ponzi - 13th Oct 14
Stock Markets Get Ugly – and May Be Getting Uglier - 13th Oct 14
Cycle Failures Point to a Stock Market Correction - 13th Oct 14
Bill Ackman: I'm not a Crybaby Shareholder - 13th Oct 14
U.S. and World Stock Markets Chartology - 13th Oct 14
Stock Market Intermediate Downtrend Confirmed - 13th Oct 14
Gold and Silver Price To Rally Or Not To Rally - 13th Oct 14
Is the Stocks Bull Market Over? Dow Trend Forecast into End January 2015 - 12th Oct 14
Has Obama Changed His Mind About Syria? - 12th Oct 14
New Zero Bound Only Game In Town - 12th Oct 14
The 5–Year U.S. Treasury Bond is Emblematic of Careless Risk Taking in Bond Markets - 12th Oct 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Stocks Epic Bear Market

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