It’s perfectly clear that big government, welfare state policies drove Greece into bankruptcy and that the path on which our own Democrat controlled government has put our nation mirrors where Greece and other European welfare states have gone.
As much as those on the left want to portray tea partiers as right wing nut cases, or as racists, truth is these are rational, clear thinking Americans who see our beloved nation being wrecked. They are serving as an early warning system that the things Americans hold most dear are in danger.Government spending accounts for 50% of Greece’s national output and taxes take 40% of it. Debt exceeds 100% of GDP. One third of everyone employed in Greece works for the government.
Now they can’t pay the interest on their massive debt and violence has hit the streets as Greeks discover that on the other end of what they thought were entitlements are empty government promises.
Just a few years ago, American debt was about 35% of our GDP. Now it’s double that and projections show it approaching 100% in just a few years.
President Obama’s budget calls for $3.83 trillion in spending in 2011. Ten years ago the federal budget was $1.86 trillion.
A year and half ago our newly elected President sold the American public that an almost trillion dollar stimulus was needed to keep unemployment from going over 8%. Today unemployment hovers at slightly below 10%.
There’s a debate going on about whether it’s accurate to call our President a socialist.
Here’s what I say.
Socialism has three key characteristics, all of which I believe he buys into.
First, socialism disdains private property as sacred. Any doubt where our President stands on this? As former Council of Economic Advisors head Greg Mankiw notes regarding the health care bill, the prime motive was not “health per se but ….redistribution of income.”
Recent data from the Tax Foundation makes this clear. Families in the upper 1% of income will pay an average of $52,000 more in taxes and families in the bottom 50% will get an average of $1000 in benefits.
Second, socialism puts faith in government social engineering. Just think government health care, government takeovers of banks and car companies, and cap and trade.