Posted on 03/05/2011 6:41:53 AM PST by Son House
RUSH: We're gonna have to put this chart up at RushLimbaugh.com. It's from Business Insider, Henry Blodget.
"Here's The Only Chart You Need To See To Understand Why The US Is Screwed." You've seen the chart, Snerdley? This all from Saturday. "We're still working our way through Kleiner Perkins' partner Mary Meeker's excellent analysis of the financial condition of the United States. We'll be breaking out some key sections in the next few days. In the meantime, here's the one chart you need to see to understand why the US is screwed.
This is the 'income statement' of the United States in 2010. 'Revenue' is on the left. 'Expenses' are on the right. Note a few things... First, 'Revenue' is tiny relative to 'Expenses.'
Second, most of the expense is entitlement programs, not defense, education, or any of the other line items that most budget crusaders normally howl about. Third, as horrifying as these charts are, they don't even show the trends of these two pies: The 'expense' pie is growing like gangbusters, driven by the explosive growth of the entitlement programs that no one in government even has the balls to talk about. 'Revenue' is barely growing at all."
And what is obvious as well when you look at this is that there's no way to solely grow our way out of this. There's gonna have to be major spending cuts in entitlements.
So what I'm gonna do here, folks, I just turned the Dittocam off while I zoom in. I'm not gonna go through the process of having you watch me zoom in. But I'm gonna zoom in on this. All right. If you're watching on the Dittocam, here we go. As you're looking at this, the chart on the right is expenses.
The pie on the right is expenses. The pie on the left is income. Now, look at that pie on the right with the blue, orange, and red slices. Those are the entitlements: Medicare, Medicaid, Social Security. Expenses. The others are defense, education, a bunch of other stuff thrown in there.
The point being made is that the big pie is continuing to grow. These expenses are continuing to grow, grow, grow. The income on the left, pretty soon the comparison's gonna be the size of the earth to the moon, as it keeps going.
And they're right. You see this and it's all you need to see to illustrate the problem that we have and to be able to recognize that growth alone is not gonna equalize these two pies in size. It's going to require spending cuts.
Now, on the big pie, of those three, the blue, the orange, and the red, Social Security's 20%, Medicare is 22%, Medicaid, 22%, unemployment compensation, 16%. Social Security is 20%. Twenty-two percent is Medicare and Medicaid.
Unemployment compensation is -- this is striking -- three-fourths as big as Social Security. The amount of money we are paying people not to work as an entitlement on this chart, looked at as an entitlement, is three-fourths the size of Social Security. (interruption) Just like what? Just like Europe.
Just like Europe. On the income side, individual income tax rates are 41% of all income. Social Security tax, FICA, is 40%. Corporate income tax is 9%. There's 10% other varied sources of income.
So we'll link to that chart, and you'll be able to see it at RushLimbaugh.com.
“We need a reset, a default.”
I almost agree. There is something about a default then a period of redemption that I find compelling. However given the elderly that would be left to die, I can’t agree.
I think the colleges should have to pay back those loans when someone like your daughter obviously cannot.
A-men! Preach it bro!
Nobody ever lost money betting on America.
Good explanation
Yep, But seems like some folks can barley get moving at 50, then you see the granny at 70 outworking all the young folks around her.
Praying for the best for you and your family. You’ve reminded me of my debt tolerance, after 2 yrs of school loans I reached that limit, went to work full time and now take 1 class a semester, slow going, but the debt is tolerable.
Thank you once again for your kind words. I so agree that the damage done to America MUST be corrected. I doubt that those students who qualified for the DREAM act paid their loans back. More than likely they just returned to their country of origin after completing their education in America.
My daughter can be comforted by the fact that even after she passes to the arms of our God, the debt continues and her estate is liable. She won’t have an estate but those children who will, at the end their time on earth, will have their estate snatched away from their children by this infamous government. There is no statue of limitations on a student loan. Ridiculous, isn’t it? Do any of those fools we elected have foresight?
Thank you for your sweet comment. Get rid of that damnable loan at your earliest convenience...there is no statue of limitation collecting it and, even after your death, if it is still owed...your estate will have to pay it. It was too late for my daughter when I found out about the loan and the resulting implications, unforeseen, that have occured. This goes onto my “I am madder than hell” list...which has now become a growing novel.
I see this whole debacule from both angles.
My mom relies on Calpers. My hubby is not near retirement. My daughter is finishing high school. We are in-between, yet I can see the damage done, and the damage that is coming. The fraud in the mortgage industry along with the collusion of the banks on their CDS swaps is ten times BIGGER than the GDP. WE CAN NOT PAY THE BANKS LOSSES BACK. Default is the only way. I am not happy to write that. But even with jobs, there will be no way to pay it back!!!!
Default will clear the system. It will hurt most Americans, and yes the elderly. But do we really want to leave a mountain of debt for the next generation?
I don’t.
Debt enslaves, and I will not want to see the next generation in chains, because we refused to see reality for what it is.
I think they should be allowed in a bankruptcy. If one cannot pay their credit nor keep their home then how is that person expected to pay back a student loan...and for the remainder of their lives? It makes no sense...but, then, that is what we all keep yelling out...”we want people elected who have COMMON SENSE!”.
Your lack of compassion is obvious.
I’ll be happy to send you my bill for what I paid for school.
Then you can show me your compassion.
“India and Australia look awfully nice”....I looked into Australia once upon a time and found out from friends who had moved their the expense of actual living there was much higher than our costs and that the government was even more left leaning...almost socialistic...and this was many years ago. I can’t imagine how it must be now because socialists are like a Banyun tree....just keep on making their roots turn into big parts of the tree. Now, New Zealand...that one is still in my thoughts. Had a pilot friend who flew in there and said it is a beautiful country and reminded him of American back in the fifties....just passing on some thoughts to you....
It is the new Debtors Prison, isn’t it?
They knew what they were doing back in 1990’s, the laws were changed back then. They knew a credit bubble would be blown, was being blown by Greenspan. Then the bankruptcy laws were changed in the early 2000’s. It is usury; it used to be illegal. In fact, a number of states have laws currently on the books against it.
Hopefully, something can be done. I am not a lawyer. But maybe an enterprising unemployed one will find something to use against these thieves.
May the Lord have mercy on you and your daughter.
I watched a brother die at the age of 33. May the Peace of Christ fill your heart, may He touch your daughter and comfort her.
I will pray for you and your daughter.
God bless you.
Do you not know what “terminal” means?
Her daughter is dieing, jerk.
Thank you for your comfort, words, thoughts and mostly your prayers. I lost my son when he was 20 in a tragic accident. Now my only living child is facing the end of her journey and it is the most difficult burden given to a parent.
I am thankful for my eyes being opened to the debauchery in Washington D.C....it allows me to vent my anger and frustration at people who are deserving of it rather than the trials in my personal life. I am wanting to find a “blue haired” militia to hook up with. Life is difficult, at times, without the added loads put upon us by elected officials.
When I was little the titles of Senator or Congressman, and especially, President were titles held in awe and respect. Now I spit upon the titles and would walk away from meeting the person holding one. Maybe one or two I hold in respect but for the most part...a boo and a hiss from me.
Thank you again. You are a light in the darkness.
One, I thought you were referring to your daughter.
Two, no, that is the first that I’ve seen that she was terminally ill. I am sorry, I did not see that previous.
I was responding to another Freeper, and her situation.
I do accept your apology. I was pretty amazed and wondered.
Thank you for clearing that up.
I am *very* sorry.
No, I agree with you wholeheartedly about non-dischargable debt.
The commies use it as a tool to chip away at inheritance. To a commie Education is *special* and people shouldn’t be able to blow it off with other debts.
It’s also a tool that grossly inflates the cost of education, because if it isn’t dischargable, they can jack up the cost!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.