Expect Congress to try and pass a law requiring retirement funds be invested in government obligations.
Shoot, they’re already doing that with the use of social security funds medicare funds supporting Obamacare. And let’s face it it’s been going on for a couple of hundred years. These type of debts started when we were able to create funds for the government, even though we borrowed $75M for the revolutionary war. We paid that back rapidly. We have notoriously borrowed for wars and if you consider we’ve had a number of them, you can understand the debt. After World War I public debt was up to $25.5 billion; the New Deal and World War II resulted in one of the first sizable explosions in debt, up to $260 billion by 1950. Throw in LBJ’s Grand Society, the Vietnam War, the defense build up against the Soviet Union, wars in Iraq and Afghanistan, sweeping tax cuts and a brutal recession, and we find ourselves mired in this current mess.
Accoprding to the Washington Times, entitlement rise since 2008 is overwhelming. Welfare has risen 32%, just short of 1/3 of its bill since its creation fattened by President Obama’s stimulus spending and swelled by a growing number of Americans whose recession-depleted incomes now qualify them for public assistance.
The people that had money go broke. The people getting the additional tax money won’t get enough to not go broke. And the only people that can keep jobs as the economy tanks, is the federal government. See a correlation here? Me too.
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