WASHINGTON, April 22, 2014 – Whether you love math or hate math, there is one thing that can be said about math. Numbers don’t lie. People lie. Numbers don’t. And there are some numbers Americans had better pay attention to.
The U.S. Census Bureau reports that as of 2012, a little over 86 million Americans got up and went to work every day. That is out of a nation of well over 300 million. But there is another number that should scare every American to death.
The Census Bureau reports states that approximately 103,087,000 people worked full-time, year-round in the United States:
“A full-time, year-round worker is a person who worked 35 or more hours per week (full time) and 50 or more weeks during the previous calendar year (year round),” said the Census Bureau. “For school personnel, summer vacation is counted as weeks worked if they are scheduled to return to their job in the fall.”
As of the fourth quarter of 2011, there were 108,592,000 people in America who were drawing some type of government benefit. These were people who lived in a household where one or more person received a means tested government benefit.
That is 22 million more people drawing a government benefit than there are going to work five days a week, fifty weeks a year.
You don’t have to be a rocket scientist or have Ph.D. in Economics to figure out something obvious. This is a trend that cannot continue. Like our national debt, it is unsustainable.
When you have a majority of Americans now drawing government benefits, there is are inevitable consequences. First, politicians see these people as a constituency and work to protect them against benefit cuts. No matter how dire the situation, politicians work these people telling them, vote for me and I will make sure your benefits are not cut. Even worse, they will start telling these people, vote for me and I’ll get you even more benefits.
The American worker is no longer working for himself and his or her family. They are now working to support their family and 1.3 people who either cannot or will not work. Given the massive fraud in most government welfare programs, the number that simply refuse to work is staggering.
The workers and the productive class have a bleak future before them. The politicians pander more and more to an even larger welfare class. America has been able to borrow money to avoid massive and draconian tax hikes but the era of easy borrowing is coming to an end for America.
Within the next couple of years, interest rates will skyrocket, forcing massive increases in the amounts necessary just to service the interest in the national debt.
As we have seen in nations like Greece, politicians will not cut the benefits to the entitlement class because they know they will be voted out and be replaced by other politicians who won’t cut benefits. For workers and the productive entrepreneurs and innovators, the incentive to work and take risks will be greatly diminished because of the amount the government will be forced to take in taxes.
Just today we found out that America’s middle class is no longer the wealthiest in the world. America’s decline is accelerating.
Sooner or later, the wealthy will take their money elsewhere. Sooner or later, the best and brightest will look to other nations that will allow them to keep the fruits of their labors.
And for the regular worker, sooner or later they will face the John Galt decision. Sooner or later they will simply decide it is not worth their while to work any longer.
Margaret Thatcher was right when she said, “The problem with socialism is sooner or later, you run out of other people’s money.”
America is now well on the road to finding out exactly when that will happen.