Regarding the video that recently surfaced with Mitt Romney discussing the state of the voting electorate; Mitt was right and he was also wrong. He was right about the number of people who do not pay any federal income taxes. The number is 47-percent. But what he was wrong about is that there are actually 49-percent of households in the United States receiving some form of government assistance. He also said that a lot of that population are not likely to vote for him. Why? I will let Alexis de Tocqueville answer that for me.
"A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship. The average age of the world's greatest civilizations has been 200 years." ― Alexis de Tocqueville
Mitt has correctly identified the problem, and he and Paul Ryan have a lot of good ideas about what to do about it, but will the public wake up and realize what the trajectory of the country is? Will the electorate continue to vote themselves entitlements from the largess of the public treasury? Or will they come to the realization that 16 trillion dollars of debt means that we have lost control of our finances. Do they understand that we are borrowing (and/or printing) 42 cents of every dollar we spend? Do they realize that when a nation loses control of their finances, they lose control of their destiny?
President Obama thinks the answer is more taxes. In other words, the public sector should continue to siphon off more money from the private sector. The parasite should grow larger and the host should grow smaller. The problem is that there is not enough money left in the private sector to pay for the leviathan government. If Obama's tax plan goes through — i.e. letting the Bush tax rates expire, it will only raise enough new revenue to pay the interest on our debt for 18 days. There simply is not enough money out there. Economists are calling Obama's plan to let the Bush tax rates expire combined with all the new taxes from ObamaCare "Taxmageddon" because it will put the economy into a horrible recession. The economy is expected to shrink by 2.3-percent in 2013 if nothing is done about those impending taxes. A shrinking economy would just further reduce government revenue and make the deficit worse. There is no way out without shrinking the size of government. If you were to tax everyone who makes over $500,000 at the rate of 100-percent it would only raise 1.3-trillion dollars. Our deficit for 2011 was 1.6-trillion dollars. Again, there is simply not enough money out there to pay for our bloated government.
I know Mitt Romney's speech from the video may seem harsh to some, but this country needs a wake-up call and quick. I wish he and Paul Ryan would do more of that. Our country's credit rating was downgraded last week. Global financial collapse is on the way and too many seem oblivious to it. We are 16-trillion dollars in debt, who is going to lend us money? The answer is "nobody" and that is why we are printing more and more money. (QE3). Wake up everyone!