THE GOVERNMENT WILL SUPPORT US - RIGHT?

Our Governments (US Congress, and State Legislatures) are spending more than they make. If that happens to you or your family, bankruptcy is inevitable. Our Politicians however, don't believe this basic law of Economics apples to them. But when you spend more than you earn, the result, which is guaranteed by this same basic law of Economics, is a concept that most Americans understand intuitively.

Today we are informed by "USA TODAY" in this article that the Government is growing and Private pay is shrinking. In other words, We Are Broke. Private pay shrinks to historic lows

Paychecks from private business shrank to their smallest share of personal income in U.S. history during the first quarter of this year, a USA TODAY analysis of government data finds.

That's not good news. We all took a pay cut. How about the Government?

At the same time, government-provided benefits — from Social Security, unemployment insurance, food stamps and other programs — rose to a record high during the first three months of 2010.

Bottom line WE ARE SPENDING MORE THAN WE MAKE! Some in Government apparently failed the final (or never took the course) in Economics 101.

What are we spending so much money doing?

Those records reflect a long-term trend accelerated by the recession and the federal stimulus program to counteract the downturn. The result is a major shift in the source of personal income from private wages to government programs.

What's the future hold for the US?

The trend is not sustainable, says University of Michigan economist Donald Grimes. Reason: The federal government depends on private wages to generate income taxes to pay for its ever-more-expensive programs. Government-generated income is taxed at lower rates or not at all, he says. "This is really important," Grimes says. [Emphasis Mine]

The solution is simple, but not easy. The Stimulus is not working. The budget (which Congress has failed to pass) is not balanced. Government give-away programs will have to be cut. The Politicians who fail to heed this idea will find themselves out of work after November.

OVER THE TOP

Another Politician has stepped into the OVER THE TOP category with these remarks:

Governor Deval Patrick [D-MA], even as he decried partisanship in Washington, said today that Republican opposition to President Obama’s agenda has become so obstinate that it “is almost at the level of sedition.”

Patrick says Obama critics are 'almost at the level of sedition'

After the forum, Patrick explained his remarks.

“I think that the number of people in the Grand Old Party who seem to be absolutely committed to saying ‘no,' whenever he says ‘yes,’ no matter what it is, even if it’s an idea that they came up with, is just extraordinary,” the governor told reporters after the forum.

But did the opposition really border on sedition?

“That was a rhetorical flourish,” Patrick said. [Emphasis Mine]

This kind of Political Posturing does not help.

OVER THE TOP

Politicians are prone to make statements which are OVER THE TOP. These are statements which are primarily for Political Advantage.

Patrick Kennedy (D-RI) has made the latest OVER THE TOP claim with this gem.

Rep. Kennedy Says Mexican President 'Right On' in Criticizing Arizona Immigration Law

"So, you know, we had a tragic history in this country," said Kennedy. "The most shameful parts of our history were when we had our slave trade, when we, when we, the Trail of Tears--what we did to our Native Americans."

Kennedy claims the Arizona Immigration Law equates to Racial Profiling and therefore the Arizona Immigration Law also equates to Slave Trade and the Trail of Tears.

My comment to Senator Kennedy: READ THE LAW before you comment. It is obvious from the Senator's comments, just like so many other Liberals, He has not read the law. We can add Senator Kennedy to this list who have not read the Arizona Immigration Law.
Secretary of Homeland Security - Janet Napolitano
Attorney General - Eric Holder
President - Barack Obama

READING THE TEA LEAVES

What kind of situation do we face in the USA if we don't control our spending and balance the budget? Here is a sample of items for your consideration

From the New York Times
Europeans Fear Crisis Threatens Liberal Benefits

...all over Europe governments with big budgets, falling tax revenues and aging populations are experiencing rising deficits, with more bad news ahead.

With low growth, low birthrates and longer life expectancies, Europe can no longer afford its comfortable lifestyle, at least not without a period of austerity and significant changes. The countries are trying to reassure investors by cutting salaries, raising legal retirement ages, increasing work hours and reducing health benefits and pensions.

From the Guardian/The Observer

"We are building up an almighty bubble of debt which is going to burst in one great bang," says Hans-Werner Sinn, chief of Ifo, one of the country's leading economic thinktanks.

That means a bitter round of budget cuts, deeper than any seen since 1945. Every area of German life is expected to take a hit, from education to welfare benefits, swimming pools to autobahns. Far-fetched as talk of the return of the mark seems, the more it is talked about, the more it is likely to become popular, despite Merkel's insistence that if the euro fails, so will Europe.

Don't think we are exempt. We need to cut the spending and balance the budget NOW.