You should not hear, speak, or see evil. As our politicians continue to wreck the American economy, should that be the U.S. public’s new motto? We all know that politicians are unable to see the truth, ignore history and understand basic math. But the American public seems to be doing much the same. The reason Congress and some wealthy influencers prefer ignorance to the rest of the population is wealth and power. Mental laziness is the primary reason for the public’s ignorance. This applies to all income levels, regions, gender, race, and education. It’s much more entertaining to see reality TV and hear Hollywood gossip than to do the critical thinking required to read books and discuss the economy and the world around you. Politics is a business that uses catchy slogans to pass the blame for failures.
The U.S. government’s debt is beyond repair and the country will have to make difficult, difficult decisions in the future. Consider (source: www.TheBurningPlatform.com):
* The U.S. has unfunded obligations of $200 trillion for Social Security and Medicare, Medicaid, government pensions, and Social Security. Another $6 trillion can be added for local and state pension benefits.
* Defense spending has increased from $358 billion to $831 billion in 2000, even though we have no chance of being challenged militarily by any country or group.
* A typical baby boomer will receive $300,000 more in Social Security and Medicare over their lifetime than what they put into.
* The annual deficit for the federal government would be $6.7 trillion if it was required to follow the same accounting standards used by most corporations.
* Many experts in financial services without political leanings expect Obamacare will add trillions to our national debt. It is important to note that Medicare and Medicaid were originally projected to be very affordable. Now, they are much more expensive.
* Some U.S. cities are left with less than ten days cash to pay their bills. These include Charleston, S.C., Fresno CA, Chicago, IL, and New Orleans, LA. (source: Zero Hedge)
Especially among the younger generations, the population is increasing faster than jobs. This applies to all age groups below 55, according to statistics. There is no way out of our financial mess. I believe it will be almost impossible for the federal government pay all future and current liabilities. This should not make Americans feel depressed or discouraged, but it should help us to be aware of the potential future consequences so that we can protect our families and ourselves. It is likely that the U.S. will default on future obligations. Although major structural changes would reduce the impact of existing programs (mainly entitlements and military), there is not much political will to make them. Today’s conditions look pretty normal with rising stock prices and housing prices, falling unemployment rates (government-calculated), and inflation in check.
Isaac Asimov (American writer and biochemist who was born in Russia) once stated the false notion that “my ignorance” is as good as my knowledge. Economists, Greenspan and Bernanke, have made many poor predictions, but we continue to listen to them due to their academic credentials and the support of the press. Politicians promote entitlement mentality and push for a welfare state and warfare that are clearly unsustainable. Look at the soaring number of people signing up to food stamps and disability benefits over the last five years. Only a small percentage of this can be attributed, I believe, to economic conditions. To get the regulations they want, unions, corporations, special interests, and others pour huge amounts of money into politics without considering the taxpayer. A large portion of the population is struggling to make ends meet while saving little for retirement.
Our leaders must be honest, compassionate, open-minded, willing to learn and understand the long-term consequences of their actions. Asimov also said, “A subtle thought that’s in error may still give rise to fruitful enquiry that can establish truths that are great value.” We cannot expect truths from our leaders. It is your duty to your country and yourself to be informed and well-informed, rather than following an easier path of ignorance or apathy.
Adam Mcbrian, a San Diego-based realty note buyer writer and investor is based in California.