As our welfare rolls grow a thought comes to mind as to where it will end and what might be the ultimate collapse of our nation in what was once predicted, “Not with a bang, but with a whimper.”
We are approaching a crossover point where 50 percent of our nation is dependent on various government welfare programs funded by the working taxpayer and increasingly through deficit spending by the government. At some point taxes will have to increase as we approach national bankruptcy.
As those who labor and see their disposable income shrink through increasingly confiscatory taxation they will, sooner or later, realize they can receive more disposable income inside the welfare system than remaining in the labor force.
Better yet, they can relax, stay at home or on the streets with full leisure as long as they vote the proper party into office every few years, After all, remaining in office is the primary function of politicians. He who promises the most stays the longest.
Sooner or later the bills will come due as they always must. With the former taxpayers no longer earning tax money, but now only another drain on the treasury, the government will have to depend on deficit spending through borrowing. But that government is now a bad risk for the domestic lenders and they will simply transfer their holdings to more friendly fields overseas. In desperation the government might vote for powers to confiscate the private sector, but even that golden goose will dry up as the outgo exceeds the income.
That only leaves the international lenders, to whom we are already deeply indebted. They didn’t make their wealth by making bad investment choices.
When they, the last resource, say no, what then?