Entitlement Theory = Economic Chaos for the future….

The Heritage Foundation  02/08/12

“The 2012 Index of Dependence on Government”

William Beach and Patrick Tyrrell

http://www.heritage.org/research/reports/2012/02/2012-index-of-dependence-on-government

Virtually no issue so dominates the current public policy debate as the future financial health of the US govt.  Americans are haunted by the specter of enormously growing mountains of debt that suck the economic and social vitality out of this country.

The 21012 publication of the Index of Dependence on Government that the Heritage Foundation has flashed warning light about Americans’ growing dependence on govt programs.  The Index variables that grew the most were:

·          Housing:  13%

·         Health Care and Welfare:  13.1%

·         Retirement (Social Security):  3.1%

The increase from the previous Index has now grown by 60.7% just since 2001.  The percentage of people who do not pay federal income taxes, and who are not claimed as dependents by someone who does pay them, jumped from 14.8 % in 1984 to 49.5% in 2009.  This means that in 1984, 34.8 million tax filers paid no taxes; in 2009 151.7 million paid nothing.

Over the next 25 years, more than 77 million boomers will begin collecting Social Security checks, draw Medicare benefits and relying on long-term care under Medicaid.  The financial challenges will be great over the next several decades, given that none of these “entitlement” programs can easily meet its obligations even now.  Doubling the number of people in retirement will constitute a massive growth of the population largely dependent on govt. programs. 

With the growth in dependence in 2010 that the twin concerns:

·          How much damage this growth has done to the republican form of government?

·         How harmful it has been to the country’s financial situation?

Commons Sense Review

The gap between those who receive govt dollars and those who give govt their dollars is closing.   At one point there will be no dollars left to give and those who bought into the govt saving them will suffer.  We need to educate each other on self-responsibility and self-sustaining lifestyles.   

We learned from Katrina that there is a percentage of the population who waits for the govt to help them, instead of making sure they are safe.   Secure your family and you will have a solid foundation to handle the chaos…