In response to SFBostonFan's comment:
WOW... I really don't intend to start another politcal topic on a sports forum especially when our 3 Boston major teams won but Pumpsie lives in California as I do and I wonder his comment on my comments that follow.
Does anyone wonder why California is going bankrupt !!!
It’s not if this economy collapses but when. Because I’m going to be 75 this year, the good news is I’m probably not going to live long enough to see the disaster.
We are underfunded in almost every state, county and city in the U.S. with few exception like Texas, North Dakota and a couple of others. This infrastructure will implode. You already see it – Riverside, Vallejo, Stockton bankruptcies. The life blood of reducing unemployment is the opening of many small businesses but Obamacare will prevent many from expanding and making new hires. People are finding out that their health insurance premiums are going to double or worse. Our Medicare premiums will be higher and we will have trouble finding a doctor. There will long waits for appointments, treatments denied. As I said, and I’m not being selfish but just realistic and lucky I’m older, when I find Doctor who won’t accept Medicare, I have the VA medical services, Doctors, Labs, Xrays, MRIs, Audio, Physical Therapy & the Hospital as a backup.
When you add 20 million people to the system, most of whom will have to be subsidized, our medical system will be overwhelmed. Obama, I believe, really miscaluculated on this and Democrats like Nancy Pelosi went along. They don’t have a clue. And if amnesty gets through and we legalize 12million illegals who can vote, the Democrats will dominate every election and the Republican party is done for at least my remaining lifetime.
Pension payments to retirees in many parts of the country is sinking the public schools. They spend more $ on paying retirement benefits then they do educating the kids and it’s going to get worse before it turns around.
It unfortunately could be that the federal government will eventually default on its obligations even at today’s low rates. I’m guessing interest rates will not go much higher in a long time because the government will go into debt even faster if it does. I always wanted to live off my investments and keep the principal secure by earning a decent interest rate. Alas, I’m dipping into principal even to pay my Income Taxes, to fund vacation trips, purchase a new car etc. I may do what Errol Flynn suggested, die with $10 K in your estate having enough to bury yourself & even having your last check bounce(HA!).
Right now they pay very low rates to borrowers but to repay debt at even 3% would triple the debt service to do that. We can’t service our debt right now at a federal funds rate of 25 basis points.
Liberalism will be our downfall.
Yes, there is this POV. There is also the concentration of wealth issue, which is historically a far greater concern, and largely a product of "pseudo-conservatism" (as opposed to the real model espoused by Goldwater).
Both POVs appear to be valid.