Business.
Going bankrupt? are western states already there? - government programs are expensive, usually unnecessary and fiscally dangerous. Future obligtions outstrip future revenue streams. By any measure, every single Western state - even the richest - are technically close to bankrutpcy.
Welfare, medicine, pensions, and social guarantees by government to their clients or citizens, ensures that future liabilties will result in massive tax increases, or even bankruptcy, more debt. - this is the brave new world of compassionate, multi, crying - cult socialism. Thanks to the mommy state massive future tax and debt explosions are guaranteed. Spend until you can spend no more. Erect programs, welfare schemes and, pensions government controlled industries as' values; 'part of who we are' ; our national identity etc. Push all liabilities off the balance sheet[ this is a crime in the private sector] .
Then raise tax rates and smile that it is the duty of the citizen - slave to support their own values and identity. - then declare victory over' insecurity' ; 'poverty' ; and hopelessness. Buy votes and lock the citizen to the state as its ward and child. Remarkably macabre. Over a 30 year period this means that the$ 53 Trillion in extra debt must be paid by a dwindling work - force. In the US it was recently announced that the Federal government' s off the balance sheet liabilties between today and 2041 now total$ 53 TRILLION or about 5 times the size of the US economy.
Perhaps if we are fortunate the US will have an average level of 140 million workers, between now and 2041, to support the US domestic GDP of$ 13 Trillion. - this sum of$ 40000 is an enormous obligation to pay over 30 years - it works out to an extra tax per working taxpayer of$ 1700 per year. With 140 million working citizens, the costs of the$ 53 Trillion in unfunded liabilities works out to$ 40000 of extra debt or tax per worker. For many people this is impossible to pay. So what do you think will happen when we wait until 2030 to fix the social security - pension - unfunded social medicine liability? And that amount - $1700 - of extra tax is the payment if we start NOW, which of course is not going to happen.
Instead of paying$ 1700 in extra taxes per working slave, the number will be closer to$ 400Do you have an extra$ 4000 sitting around idle? - probably not. Would you like to donate that to fixing government' s unfunded welfare mess? In general in almost every Western state the call to higher taxes and the accumulation of more debt to' save' our system and' save the old, the disadvantaged, the poor' etc. will steadily mount between now and 203We are looking at increased taxation on capital, income and sales of between 40 - 100% . As Boston University professor Kotlikoff, who has analysed the disaster has commented; "This figure[ future unfunded liabilities] is more than five times US GDP and almost twice the size of national wealth. Such a taxation level will bankrupt the economy. One solution is an immediate and permanent doubling of personal and corporate income taxes.
A third alternative, would be to, were it feasible immediately and permanently cut all federal discretionary spending by 143pc[ per cent] ." So according to Professor Kotlikoff[ article here] tax increases of between 50 - 100% on income taxes if implemented now, would help but not solve the unfunded liability crisis. - another is an immediate and permanent two - thirds cut in social security and medicare benefits. Help but not solve. Along with these huge tax increases the US would have to immediately cut current non - essential spending by 143% or eradicate in other words, almost all non - essential spending from its$ 3 Trillion US federal budget. Can you believe that? Politicians - those who use other people' s money to buy public office - are now expected or enjoined or begged, to reduce the Federal budget by 1/ 3 or more. Politicians don' t cut spending, they simply increase taxes.
To say that this is highly unlikely is to state only the obvious. - the europeans and canadians are in even worse shape than the americans. Canadian unfunded liabilities are close to$ 20000 per tax paying slave - only 50% of US levels but at income and asset levels 35% below that of American levels. The Americans have$ 60 Trillion dollars in net assets, and the richest per capita incomes and wealth in the West outside Norway[ oil] and Switzerland. That is to say the Canadian state is looking at real unfunded liabilities of$ 30000 per person with a more limited way of paying for it since all taxes in Canada are at far higher levels[ about 30% ] than US levels. In Europe absolute unfunded liability levels are even worse than in the US.
Government is therefore more constrained in Canada to raise taxes than they would be in the US. - the europeans have close to double the us unfunded liability level. By 2041 these unfunded liabilities will be 2 - 3 times US levels or close to$ 100 Trillion in total obligations. EU unfunded liability levels are already at 300% of GDP or about$ 33 Trillion dollars and growing. Compared to the US, Europe has lower per capita GDP, far lower net incomes, less people working, fewer assets and no productivity. Is the US already bankrupt?
It is pretty clear that Europe has no hope in paying$ 100 Trillion by 2041 in extra liability payments. - and if it is isn' t europe already there? Unfunded liabilities are tomorrow' s problem. But no worries. We need massive government programs, market dislocations and a' caring' bureaucracy to ensure that our' values' are not lost and that our' identities' are not corrupted through not having enough government compassion to pass around. Socialised medicine, the ridiculous pay, state pensions roll and capital taxes they endure, these and other sundry taxes and fees will all need to escalate by 40 - 100% .
It should be interesting to see how many people will support these moronic ideas of marxism and socialism when they are handed a future tax bill. - will they still chatter about state enforced love and' values' then?
