Health Care Whoah!

The following paragraph by Robert J. Samuelson in his December 7, 2009 Washington Post Op-Ed got me thinking:

"Health care is taking over government. Consider: In 1980, the federal government spent $65 billion on health care; that was 11 percent of all its spending. By 2008, health outlays had grown to $752 billion -- 25 percent of the total, one dollar in four."

Let's do some quick math. Using the numbers provided, the 1980 budget would have been $590 billion; the 2008 budget would have been $3.01 trillion. Considering the 1980 and 2008 health outlay sums, the growth rate would be 8.81% over that 29 year period. Using this figure, one could predict a government health outlay in 2020 (12 years from 2008) of $2.07 trillion.

However, the budget only grew by 5.78% per year over the same 1980 to 2008 time period. Using this figure, the 2020 budget would be $5.91 trillion, increasing health outlays to 35% of the budget.

What can we glean from all this information in correlation with the historical growth of the US GDP? Using 2000 dollars, the Q1 1980 GDP was $5.221 trillion, the Q1 2008 GDP was $13.367 trillion. That gives a growth rate of 3.29%. So the projected GDP in 2020 would be $19.7 trillion.

Hmm... $5.91 of $19.7 is 30%. The 2008 budget was approximately 22.5% of GDP. So the tax revenue burden will have to increase 33% by 2020. This begs the all important question, where will the Federal Government get the tax revenues to pay for everything? At some point the incentive to create wealth will disappear. What disaster will befall our country at that point?

In order to prevent this disaster, one should question how the Federal Government could be put in check in order to prevent it. Another more prudent question is what has changed in the past 100 years to put us into this current circumstance. I believe that the 16th and 17th Amendments are to blame. If taxes were apportioned by State, with State Representation restored to the US Senate as was originally devised by our Founding Fathers, a runaway Federal budget would be all but eliminated . No longer would Federal mandates on States be created without a means to pay for them, nor would any populace readily open their wallet to pay 40-50% Income Taxes; 50% Estate Taxes; 15-25% Capital Gains Taxes; 12.5% Social Security Taxes; 9-10% Sales Taxes; 2.5% Medicare Taxes; and 1.25% Property Taxes and all the other miscellaneous taxes burdened by productive Citizens.

There would be an absolute rejection of this confiscation of wealth, and most assuredly a rejection of the welfare state and the economic redistribution that occurs under it. Do either the Democrats or Republicans advocate restoring our Federal Republic? Do either the Democrats or Republicans warn us of the Economic tyranny that will occur in the not too distant future? The answer to both questions is no. The solution is to reject the current Political Party structure and elect Representatives that fundamentally understand both the premise of Liberty and why our Federal Republic was conceived the way it was in order to protect that Liberty.

Proposed Theft [i.e. Tax]

"House Speaker Nancy Pelosi (D-Calif.) endorsed the idea of a 'global' tax on stock trades and other financial transactions, saying the estimated $150 billion in annual revenue from such a tax could be used to help fund more stimulus spending."

When they passed the Stimulus bill in early 2009, we were promised unemployment would not go above 8%. As of December 2009, we're at 10%, a 25% increase. We were promised this bill would create jobs. Supposedly it has, at a cost near $250,000 each according to this Reuters' article. Additionally, the average payroll is approximately $60,000. So... sounds like four times as many jobs should have been created with what was spent so far. The math simply doesn't add up and that's because of the inherent corruption that exists when government meddles in the free market.

This SF twit also stated that, "I think there would be a market for it among the American people to say that we are all participating in the economic prosperity of our country, and we are all pitching in to continue that prosperity.”

WE ALREADY PITCH IN!!! The top 1% of income earners dole out over 1/3 of their income in Federal Income Taxes alone [soon to be 40%]. In CA they pay out an additional 9% in State Income Taxes. We also pay out a Capital Gains Tax between 15-25% depending on how long the stock, house, etc. was held onto. In CA we pay a sales tax anywhere between 8.75-9.75% depending on which county one lives in. This is ridiculous. What services does the government provide to those people that pay anywhere up to 60% of their income in taxes? What has the government done in order to deserve 3/5 of what one makes?

This is the inherent problem with redistribution of wealth. One class of people pay for the benefits of another class of people. Those on the receiving end will continually vote for the Political Party that promises the greatest benefits, currently the Democratic Party. As the benefits increase, so does the burden placed on the tax paying class, to the point the incentive to produce wealth is diminished. "To each according to his need" anyone? We witnessed the collapse of the Soviet system due to this philosophy, and we've witnessed the unleash of wealth creation in China when they disbanded this principle and adopted free market capitalism.

The only way to spur Economic growth will be for our burden to be reduced. You want a capital infusion into our Economy to spur job creation? Temporarily suspend Capital Gains Taxes. You'll collect a percentage of the wealth created anyways via Federal Income Taxes and State Income Taxes and Sales Taxes and if people use that capital to purchase property to construct new warehouses, new office space, etc., you'll collect property taxes too. Unfortunately Progressive dimwits like Pelosi, Reid and Obama don't understand this principle.

The only way our country will recover from these asinine tax policies and proposals will be if we change the leadership in the House and Senate and elect Politicians that fundamentally understand capitalism and its inherent superiority to every other economic model in existence. Until then, we'll continue to suffer as a Nation under these economic stifling conditions making us less competitive, and thus, less prosperous. Pelosi does care about our prosperity afterall, she stated so.

How about them govt. apples a day

An apple a day, keeps the Doctor away. I digress.

So Dick Morris published an article stating the death rate of cancer in the United States is 0.18% while the death rate in the United Kingdom is 0.25% while in Canada it's 0.21%. So in numbers, that means in the US, approximately 552,982 [using CIA Factbook 2009 numbers] people died from cancer last year. If we were to have the death rates of the UK or Canada, respectively 215,048 or 88,477 MORE people would have died last year. Anyone for that system of health care? Anyone want to volunteer a relative or perhaps yourself to fulfill those INCREASED numbers? I think the few percent more of GDP we pay for SUPERIOR health care is worth it. Any cancer survivor or relative of one disagree?