We’ve learned about production. We’ve learned about how government growth affects us. But where are we now? Where is the country today…where do we stand? Let me make a few observations and then you tell me how you feel.
When social security started, several hundred workers were taxed a very small percent to support one person on social security. These days that number is three workers to support one person on social security, but the percentage out of each person’s paycheck is way up. In other words, the percentage that each worker is taxed keeps going up. Many expect, in a fairly short time, the number will go from the hundreds it was, to the three it is, to only one. So out of your paycheck you can be expected to support…entirely…someone on social security.
The national debt is so staggering that just the interest payments are now the third largest part of the budget. They are the fastest growing part of the budget, entirely out of control. A generation ago the entire country…everything…was run on far less money than just what the interest on the national debt is now. The interest on the national debt is more than four times what the government spends on education.
Before the Depression, the average person worked only a few days a year representing the tax money taken from them. Today the average person works two days out of every five to pay taxes. That’s Monday and Tuesday for the government, and Wednesday, Thursday, and Friday for himself. At the rate we have been going that number will shortly be three days out of five. Before the Depression, the government would borrow a few pennies out of each dollar saved by the public. Today it borrows the majority of each dollar saved.
Just a very few years ago, any country showing some of the economic numbers that our country does today would have been called a “banana republic”. No offense to our neighbors to the south, but the term was used as disrespect to any country allowing such numbers. This would certainly make us the largest “banana republic” in the world.
So what can we do about it? Let’s take a look at history. Perhaps we’ll find some answers there.
History shows us, time after time, that when a country’s economy weakens, especially through inflation, the economy eventually collapses. It has always meant the loss of freedom…the loss of rights. It usually means dictatorial powers come into play supported by some kind of police or army. People have no choice, they have no rights; they are told what to do, they are told what not to do…penalties are supreme. Those who do not learn from history are condemned to repeat the mistakes of history.
Can you see examples of this happening in recent history, even today?