Is the U.S. – like Europe – doomed by its distributionist schemes?

Richard Rider, Chairman, San Diego Tax Fighters Richard Rider, Chairman, San Diego Tax Fighters 1 Comment


Is our nation economically doomed like Europe? I’m not a doomsday guy, but logically the answer is eventually YES.

Two factoids indicate that we are at or past the “tipping point”:

1. 48.5%, of the population lived in a household that received some type of government benefit in the first quarter of 2010.  (WALL ST JOURNAL)

2. 51% of American households paid no federal income tax in 2009, but 30% actually made money [from EITC] under the current system.  (WASHINGTON POST)

Both factors are scheduled to get worse. Entitlements will grow both in amounts and the number of people covered. Meanwhile “the rich” will pay for it all — or, more likely, we will defer the reckoning via debt and expanding the money supply.

This sad Ponzi scheme is — as the environmentalists love to say — unsustainable. Yet politically we can’t significantly reform it either. I see no way out of this mess.

And then on top of that federal “plan” is the California state and local madness. Hoh boy!


Comments 1

  1. Post

    I might add that, as best I can tell, the EITC “negative income tax” payment is not counted in the above group that receives “government benefits.”

    If true, then we are uncomfortably past the 50% recipient tipping point — even considering that many EITC recipients also get other government giveaways. I welcome any clarification on this matter.

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