The Coming Financial Cliff

A popular theme of mine is that liberals are either ignorant or in denial about our nation’s financial affairs. According to many financial experts, we are heading into a “financial black hole” because of federal government programs and spending. The Congressional Budget Office, International Monetary Fund and the Federal Reserve have all reported that our debt and deficit are unsustainable. Last year the federal government had a record number of taxes collected but not enough to pay the government’s bills. So the government resorted to borrowing about 8 trillion dollars. It is this borrowing that created the government’s “financial black hole.”

Here are some interesting facts gleamed from the US Census Bureau and the Congressional Budget Office:

49 percent of all Americans receive some form of federal government assistance.

70 percent of all federal spending goes to “dependence-creating programs.”

Next year the U.S. government is facing a total of 222 trillion dollars in unfunded liabilities during the years ahead.

Over the next 75 years the Social Security system is facing a 134 trillion dollar shortfall.

Over the next 75 years Medicare is facing unfunded liabilities of more than 38 trillion dollars.

What makes this situation acute is what has happened in the workplace. ObamaCare created an economy where many companies and corporations are looking at their bottom lines. They are creating more part-time work positions, hiring more consultants and farming out work to foreign firms to avoid the costly consequences of ObamaCare. This strategy means there will continue to be a decline in tax revenue because people will be earning less because they will need to pay for their own benefits. Wages are stagnant but prices continue to increase and projections state this trend will continue into the future.

Increasing the financial burden of the federal government are the government assisted programs. By 2025, Medicare will add 22.5 million people to its rolls. In addition, there are over 70 million Americans on Medicaid and ObamaCare will add 16 million more according to projections.

Social Security, Medicare, Medicaid and ObamaCare are all draining the financial life out of the nation. The Congressional Budget Office, International Monetary Fund and Federal Reserve System have all issued warnings but liberals have ignored or denied there are problems. They are blinded by their ideology. Like lemmings, they will continue to march towards the financial cliff until it is too late.

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About camden41

Retired public school administrator Retired history professor: Taught Western Civilization, American Civil War, United States History, Economic History, Ancient & Medieval Foundations, American History Since 1945
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