The average federal government employee makes over $70,000 per year without benefits.
State and local pensions throughout the USA are underfunded. Social Security is broke. Medicare is broke. Medicaid is broke. The Federal Government just rammed Health Care down our throats to the tune of 3 trillion dollars. A colossal Cap and Trade legislative proposal is on the horizon and immigration reform is guaranteed to send the entitlement system into orbit. Welcome to America 2010!
How will this all end?
Let's jump across the pond and take a look at the most recent economic disaster, Greece.
In exchange for 110 Billion Euros, from the EU and IMF, Greece has agreed to massive cuts in the countries budget. MASSIVE! Greek Prime Minister George Papandreou recently told his people to prepare for 'great sacrifices' after violent clashes between police and protesters opposing the cuts took place this weekend.
The cuts, albeit harsh, are absolutely necessary to correct the out of control, irresponsible spending of the Greek government. The "great sacrifices" that Papandreou speaks of will no doubt cause further violence, rioting and hardship to the citizens of the welfare state. Some of the "sacrifices" are sure to be met with huge opposition, but the only way to settle the problem is to do what is right, something that should have been done a long time ago. Hint (are you watching Washington?)
Here is a small list of some of the major changes that will take place in Greece.
˜An increase in the retirement age from an average age of 53 to 67
˜Government workers to lose annual bonuses worth an extra two months' pay;
˜Ten per cent tax rise on alcohol, cigarettes and gasoline;
˜Three-year wage freeze in the public sector;
˜Early retirement will be limited or abolished altogether;
˜VAT (value added tax) increase from 21 per cent to 23 per cent.
The tax increases and austerity measures could total 30 billion dollars by the time everything is fully implemented.
There are a couple of interesting side notes that everyone in America should be aware of regarding the crisis in Greece. The nation, due to it's socialist status, has overspent, over promised and recklessly created entitlement programs for it's citizens for years. The extreme costs of operating a nanny state is one of the reasons that the country is now faced with a collapsing economy. The other note of interest is the fact that as staggering as the 147 billion dollar bailout is, the U.S. congress recently gave more money to bailout AIG. This alone should testify to the immensity of our nations economic situation.
Finally, will the U.S. learn something from the situation in Greece? Probably not, it just doesn't seem to fit into our fabric. The politicians in Washington are dead set on spending us into oblivion, corporate cronyism and the fact that a huge contingency of citizens are already dependent on Big Brother suggests that we too are headed toward some type of economic judgement day.
The real question, however, is will the U.S. accept salvation in the form of "bigger government" or will we do what is right and suffer now so that our children will not have to later? Both answers require sacrifice, if we choose the wrong one, there will be no turning back!
State and local pensions throughout the USA are underfunded. Social Security is broke. Medicare is broke. Medicaid is broke. The Federal Government just rammed Health Care down our throats to the tune of 3 trillion dollars. A colossal Cap and Trade legislative proposal is on the horizon and immigration reform is guaranteed to send the entitlement system into orbit. Welcome to America 2010!
How will this all end?
Let's jump across the pond and take a look at the most recent economic disaster, Greece.
In exchange for 110 Billion Euros, from the EU and IMF, Greece has agreed to massive cuts in the countries budget. MASSIVE! Greek Prime Minister George Papandreou recently told his people to prepare for 'great sacrifices' after violent clashes between police and protesters opposing the cuts took place this weekend.
The cuts, albeit harsh, are absolutely necessary to correct the out of control, irresponsible spending of the Greek government. The "great sacrifices" that Papandreou speaks of will no doubt cause further violence, rioting and hardship to the citizens of the welfare state. Some of the "sacrifices" are sure to be met with huge opposition, but the only way to settle the problem is to do what is right, something that should have been done a long time ago. Hint (are you watching Washington?)
Here is a small list of some of the major changes that will take place in Greece.
˜An increase in the retirement age from an average age of 53 to 67
˜Government workers to lose annual bonuses worth an extra two months' pay;
˜Ten per cent tax rise on alcohol, cigarettes and gasoline;
˜Three-year wage freeze in the public sector;
˜Early retirement will be limited or abolished altogether;
˜VAT (value added tax) increase from 21 per cent to 23 per cent.
The tax increases and austerity measures could total 30 billion dollars by the time everything is fully implemented.
There are a couple of interesting side notes that everyone in America should be aware of regarding the crisis in Greece. The nation, due to it's socialist status, has overspent, over promised and recklessly created entitlement programs for it's citizens for years. The extreme costs of operating a nanny state is one of the reasons that the country is now faced with a collapsing economy. The other note of interest is the fact that as staggering as the 147 billion dollar bailout is, the U.S. congress recently gave more money to bailout AIG. This alone should testify to the immensity of our nations economic situation.
Finally, will the U.S. learn something from the situation in Greece? Probably not, it just doesn't seem to fit into our fabric. The politicians in Washington are dead set on spending us into oblivion, corporate cronyism and the fact that a huge contingency of citizens are already dependent on Big Brother suggests that we too are headed toward some type of economic judgement day.
The real question, however, is will the U.S. accept salvation in the form of "bigger government" or will we do what is right and suffer now so that our children will not have to later? Both answers require sacrifice, if we choose the wrong one, there will be no turning back!
Posts
No comments:
Post a Comment