Most federal activity now carries adverse economic ramifications. The government’s greatest endeavor has become paying people not to produce. Entitlements and associated social services encompass the preponderance of public outlays. The planners are then befuddled why annual GDP growth treads below two percent.
Rather than spur recovery by welcoming investment and rewarding production, Washington steers toward borrowing and spending. Yet, it’s obviously effort which requires incentive while consumption embodies man’s natural inclination. Funding non-work has increased federal debt by $5.4 trillion under President Obama, more than tripling GDP’s paltry clip.
The entitlement state submerges the American Dream as Washington takes on water to induce dependency. Once new spending excursions launch, scuttling wasteful programs risks mutiny by aggrieved voters. Congress lacks the will to reverse this cascading sea of red ink. Four consecutive trillion dollar deficits testify to Washington’s delusion.
The Federal Reserve Bank of San Francisco now estimates in a new study that, based on its analysis and historical modeling, business uncertainty about Washington, D.C., policy moves (tax cuts, spending) has “lifted the U.S. unemployment rate by at least one percentage point since early 2008.”
Obama’s next term? Free stuff! - Money for the banksters, money for the students, “free” money for everyone, yeah!!
Overcoming America’s historic cultural resistance to government entitlements has been a long and formidable endeavor. But as we know today, this resistance did not ultimately prove an insurmountable obstacle to establishing mass public entitlements and normalizing the entitlement lifestyle. The U.S. is now on the verge of a symbolic threshold: the point at which more than half of all American households receive and accept transfer benefits from the government. From cradle to grave, a treasure chest of government-supplied benefits is there for the taking for every American citizen—and exercising one’s legal rights to these many blandishments is now part of the American way of life.
In jewelry stores on 47th Street and Fifth Avenue in Manhattan, the important trust between merchants has been violated. A 10-ounce gold bar costing nearly $18,000 turned out to be a counterfeit.