There is an alarming relationship between Government Debt and the US Households that depend on Government programs that drive that debt.
As of 2008 - 44% , yes 44% of Americans live in Households that are receiving Social Security, subsidized housing, jobless benefits or other government-provided benefits.
The US has been a Consumer Spending driven economy. That puts Government in a very difficult position when trying to manage a way out of the current economic conditions. Cut into Government Spending and you have a good chance of impacting up to 44% of the US population negatively impacting their ability to spend.
We need to create jobs, find ways to get the US households on their own 2 feet again.
Another point - due to low paying jobs, or joblessness - an estimated 45% of household will not pay any income tax for 2010. Half of those people don't earn enough to pay taxes, and the rest have low enough pay that the credits and deductions they qualify for reduce their taxes to zero!
There is no one silver bullet for the economy, but it appears that creating higher quality jobs in the US will be a foundation we need to build or we may be stacking up another house of cards to come tumbling down again.
JZ
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