Monday, April 25, 2011

Federal Government Spending to Reach 25% of GDP in 2011

As more private businesses do more business with the government, gain favored status, get federal subsidies, acquire a financial backstop or secure trade protection the less these companies are stepping forward to defend free trade and restore a reasonable balance between the private and public sector.

The federal deficit will exceed $1,600,000,000,000.00 (that's trillions) and state budgets reach a combined $130,000,000,000.00 billion and rising, this year, it will be more difficult to vote the existing free spending elected officials out. Not hard to understand as that is where these elected and reelected get the major bulk of their political funding. With everybody, including the big corporations vying for more of the "phony money" now flying off the Federal Reserve presses, why should they vote out the tits from which they are sucking?

Only if they feel they can still get the subsidies, favors and protection from the party not now in power. Do you think the large contributions to one's election do not come with at least some chits attached that can later be called in when favors are needed?

As Arthur Schlesinger wrote in the WSJ on June 7, 1995: "The assault on the national government is represented as a disinterested movement to 'return' power to the people. But the withdrawal of the national government does not transfer the power to the people. It transfers the power to the historical rival of the national government and the prime cause of its enlargement-the great corporate interests."

They join the millions of union bosses and their followers, the millions on welfare, the very likely millions of illegal entry people who will become eligible to vote in 2012 if Obama figures out how to slide it past the honest politicians and the millions more who draw their wages and pensions from federal, state, county and other government paid positions. the odds, from where I sit, are that Obama will be reelected in 2012.

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