BY: DAVID LIPMAN, Co-Founder, WEW Llc
The quality of life which includes all the basic areas: health, happiness, financial security and life without stress has deteriorated rapidly in the last 4 or 5 decades. In order to provide for a comfortable existence, health insurance and save for college for their children, families need to have both parents working. This materially limits the positive influences of important concepts and learning. The home environment of learning at the dinner table and in family discussions no longer exists for the most part. Everyone is in a rush and stressed. The growth in the welfare system has put a burden on the working people to provide more of their hard-earned money in the form of taxation of every conceivable type. Income taxes, sales taxes, reals estate taxes, fuel taxes and nuisance taxes of every variety. The average two earner working family pays 40-45 percent of what they earn in the form of taxation. This causes stress and strain and leads to a polarization of a large segment of the population in the country. Then there is the added concern for the world we live in which has become chaotic and to a certain extent treacherous. The advent of social media has melded all the problems of everyone everywhere into a constant form of chatter and reminder.
The mismanagement of the economy and the poor forward thinking of the leadership in government have magnified the problems. Politics at all levels from local, county, State and National have deteriorated into more of a reality television show, than representing true leadership. The primary goal of a politician is being re-elected and not giving up the perks and power of the office. We have in essence reached a total disconnect of a true representation of the people in government. We instead elect people based on keeping the status quo of our welfare society tendencies. Like children once people are given something, it is impossible to take it away. We live in a society where the majority of the people think they are, “Entitled”.
In many cases the people that break the laws have more rights than the people who live within the law. Our heritage as a nation when we first became the Colonies and split from England was based on over taxation and escape from religious oppression. This history that was the basis of our Constitution has been forgotten by current generations and not understood or recognized. Most of the population has any real connection to our history. The majority of the people are now supported by the minority of the people. The great Greek Philosophers Plato and Aristotle said that when this happens you can no longer have a democracy.
The interest on our debt as a Nation is financed by the issuance of United States Government Bonds. The ability to sell them and the demand for them depends on the strength of our economy in relation to the rest of the world. Because of our being a much bigger importer than exporter for years and still remaining negative in the billions of dollars each month represents a ticking time bomb. It is like an individual living on a no limit credit card and the balance just keeps growing. At some point the world will stop buying our Government Bonds and financing our debt. We will then have runaway inflation because of the issuance of paper money because it cannot be backed by our United States Government Bonds. We have become the piggy bank to the world because of unfair trade tariffs and sending jobs to low labor markets.
Most people do not understand the implications nor the magnitude of this problem. In many ways, our representatives in Congress cannot comprehend the gravity of this either. We as a nation have lived off our debt and send our dollars all over the world. There has been a total neglect and mismanagement of our finances.
Eventually, we will be faced with a debt so large, the interest on it will consume the tax revenues that are capable of being collected. The basic fiber of the country has slowly eroded and continues to erode at an accelerated pace. Interest now is the third largest item in the budget.