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Margaret Thatcher once famously commented that “there is no public money, only taxpayers’ money.” We tend to forget this, as it sounds so simple to have the government pay for new and old entitlements.
She went on to say that socialism (read: redistribution of wealth) works until “you run out of other people’s money.”
Our government has already run out of “other people’s money” to pay for our entitlements as our national debt continues to rise above $16 trillion. We are spending more than we, as a nation, take in.
In order to maintain all entitlements and keep the government running we must borrow 43 cents for every dollar spent. Taxing the rich, as President Obama wants to do, will raise only enough new money to keep the government running for a little more than eight days. This does not solve the problems of paying for entitlements and reducing the national debt.
Right now (and the figure changes as the debt increases), every person’s share of our nation’s debt is over $48,000 and, if all debt outstanding is considered, the figure is $62,000. Since the median income nationally is about $50,000, this means that the personal share of the total debt now exceeds income by $12,000!
Also, payment of the interest on the debt now takes up about 6 percent of total government expenditures. And each time our nation’s rating is lowered, interest rates go up.
The current trend by the Obama administration to broaden entitlements is, as should be apparent to everyone, unsustainable. Social Security and Medicare, if not reformed, will cease to exist within a few years. Other entitlements that increase dependency on government funds must also be reined in.
Of course we have to help those in dire need who, for various reasons, require aid. Our veterans cannot be forgotten.
We should also commend those who work tirelessly, sometimes at two or three jobs, to minimize their dependency for sustenance. They are to be admired, but besides should be offered hope that their situation will change for the better.
The solution is to get people back to work at decent wages and climbing the ladder of success.
We further need as a nation to understand that there is no government money, only taxpayers’ money. And we have run out of that.
