In response to:

Are We Becoming European?

Steve2680 Wrote: Jan 04, 2013 5:05 PM
The only nit I would pick is the line about Social Security recipients taking out more than they put in. Yes, they are getting more than they have deposited but you are forgetting about the time value of money. It isn't like they put the money in yesterday and are taking it out today. They have paid in over a whole career, 30 or 40 years. The average person should expect an investment to pay interest so they would pull out more than they put in, or else why invest in the first place? Even at a paltry average of 4 percent interest with compounding the average recipient would receive much more from a savings account than from Social Security.
RayTheAnarchoCapitalist Wrote: Jan 04, 2013 7:15 PM
It's no longer even true that people get more than they paid in. Unless you're poor. The middle class and rich are seeing a negative return on their "investment".

Following the fiscal cliff melodrama, Senator Richard Shelby appeared on television to declare that we are becoming European. "We're always wanting to spend and promise and spend and borrow but not cut. We've got to get real about this. We're headed down the road that Europe's already on."

There's no "heading" about it. We're there. Prof. John J. DiIulio, writing in "National Affairs", outlined the true size of American government. When state and local government expenditures are added to federal outlays, government spending as a share of GDP easily competes with European nations. In fact, per-capita government spending in the...