Friday, February 17, 2012

Is the USA a wealthy country?

Ask anyone in the world and they will tell you the USA is a wealthy country; more millionaires, and more billionaires than any other country in the world.  And even the "poor" in the USA would be considered middle class or even "wealthy" in some countries.

Greece was once considered a wealthy country; citizens had government provided health care from cradle to grave, 30% percent of the population worked for the government with generous salaries and pensions. Even those working in the private sector had generous pensions and could retire at a relatively young age. And 4-6 weeks’ vacation leave was standard for most. It was a wonderful life. So why are they now rioting in the streets and burning down their buildings and businesses?

Because no one will lend Greece money anymore!

This Shangri-La that was once Greece is now facing reality.  For decades the country survived on "borrowed" money and finally the lenders said "no mas". And since the state now has no money to pay all these wonderful entitlements they have to make cuts to pensions, minimum wages, lay off non-producing government employees, and now the citizens are rioting as a result of their "entitlements" being taken away from them.

But this could never happen here in the USA could it?  We are a “wealthy” country, inventors of the iPod, the IPhone, Facebook and all the wonderful technology that makes this country hum along. We take care of our people – 42 million on food stamps, housing subsidies for the poor, school breakfast and lunch (and in some cases dinner) for school kids, free cell phones and “minutes” for the poor, 99 weeks unemployment insurance, Medicare, Medicaid, Social Security…and I read recently that a family that qualifies for all the government programs available could receive over $32000 in welfare payments a year;  more that the average “working” family….is this a great country or what?

But what most people want to ignore (or don’t understand), this country has borrowed $15 trillion dollars along the way; soon to be $16 trillion…the national debt under Obama. This debt has been accumulated for decades under many Presidents, but Obama has “doubled down” on borrowing with his plethora of social programs and has taken this country to the edge of financial disaster.  

What happens when our lenders say “no mas”?