Welfare States On the Brink

Discussion in 'Politics' started by LogikAndReazon, May 30, 2012.

  1. LogikAndReazon

    LogikAndReazon Gold Member

    Feb 21, 2012
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    What we're witnessing in Greece, Italy, Ireland, Portugal and other parts of Europe is a direct result of their massive spending to accommodate the welfare state.

    A greater number of people are living off government welfare programs than are paying taxes. Government debt in Greece is 160% of gross domestic product. The other percentages of GDP are 120 in Italy, 104 in Ireland and 106 in Portugal.

    As a result of this debt and the improbability of their ever paying it, their credit ratings either have reached or are close to reaching junk bond status.

    Here's the question for us:

    Is the U.S. moving in a direction toward or away from the troubled EU nations?

    It turns out that our national debt, which was 35% of GDP during the 1970s, is now 106% of GDP, a level not seen since World War II's 122%.

    That debt, plus our more than $100 trillion in unfunded liabilities, has led Standard & Poor's to downgrade our credit rating from AAA to AA+, and the agency is keeping the outlook at "negative" as a result of its having little confidence that Congress will take on the politically sensitive job of tackling the same type of entitlement that has turned Europe into a basket case.

    I am all too afraid that Benjamin Franklin correctly saw our nation's destiny when he said, "When the people find that they can vote themselves money, that will herald the end of the republic."

    Is The U.S. Moving Toward Or Away From The Troubled European Nations? - Investors.com
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  2. TakeAStepBack

    TakeAStepBack Gold Member

    Mar 29, 2011
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    We're in even bigger trouble than the EU socialist nations. We're gonna make them look good when our government finally breaks the dollar.

    106% debt/GDP and rising
    16 trillion in national debt and rising
    1.3 trillion annual deficits and growing
    Inflationary monetary policy with the common concensus that deflation is the absolute devil, savings is bad, spending good and we can print our way to wealth.

    Two words: We're Fucked.
    Last edited: May 30, 2012

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