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What Do California And Detroit Have In Common?

When most people think of the economic decline that is happening in America, most of them think of states like California and cities like Detroit.  In both cases, unemployment is rampant, government finances are a mess, and businesses and families are both leaving in droves.  So what is causing this?  What do California and Detroit have in common?  Well, for one thing, both the state of California and the city of Detroit have been run by anti-business socialist control freaks for decades.  Once upon a time millions of young Americans that dreamed of a better life flocked to California and Detroit was one of the most vibrant manufacturing cities in the history of the world.  But now both of them are in an advanced state of decline, and a lot of the blame can be placed at the feet of the politicians in both cases.  Both California and Detroit have become very unfriendly places to businesses and families, so businesses and families have been leaving both California and Detroit in very large numbers.  At the same time, the socialist welfare policies in both places have caused them to become magnets for those that enjoy being dependent on the government.   Welfare recipients are not likely to pack up and move down to Texas because they know that their benefits would not be nearly as good down there.  So both California and Detroit will continue to attract those that want to live under socialist control freaks and it will continue to drive away those that do not want to live under socialist control freaks.

It is so sad to see what has happened to Detroit.

At one point, Detroit was one of the greatest cities in the world.

But today, 53.6 percent of all children in Detroit are living in poverty and 47 percent of all people living in the city of Detroit are functionally illiterate.

How does something like that happen?

Over the past 50 years, the population of Detroit has lost more than a million people as businesses and families have left in droves.  The following is from a recent Economy In Crisis article….

Once the wealthiest city in America, known as the “arsenal of democracy,” Detroit was the fourth largest city in the U.S. in the 1960s with a population of two million. Now a microcosm of everything that is wrong with the American economy, Detroit has become nothing more than a devastated landscape of urban decay with a current population of 713,000.

Visiting Detroit is the closest Americans can come to viewing what appears to be a war torn city without leaving the U.S. This former powerhouse is a barren stretch of land, devastated by looters and and full of run-down, vacant houses. Rows upon rows of dilapidated structures line the streets; empty apartment buildings and factories consume the landscape. Almost a third of Detroit has been abandoned.

Third world conditions prevail in many areas of Detroit today.  There are many areas of the city that you simply would not want to ever visit at night.  The following is what one enterprising British reporter found during his visit to Detroit….

Much of Detroit is horribly dangerous for its own residents, who in many cases only stay because they have nowhere else to go. Property crime is double the American average, violent crime triple. The isolated, peeling homes, the flooded roads, the clunky, rusted old cars and the neglected front yards amid trees and groin-high grassland make you think you are in rural Alabama, not in one of the greatest industrial cities that ever existed.

In Detroit today there are large numbers of three and four bedroom homes that you can buy for next to nothing.  Most of them are boarded up and abandoned.  Nobody wants to live in them anymore.

The graduation rate in Detroit is down to about 25 percent, and the city has become a breeding ground for crime and gangs.

The jobs that have left Detroit are not coming back.  A lot of this can be blamed on the foolish “free trade” economic agenda being pushed by both major political parties.  For example, auto parts exports from China have increased by more than 900 percent since the year 2000.

But not all the jobs that have left Detroit have gone overseas.

A lot of businesses have simply moved their manufacturing facilities to more business-friendly areas over the past several decades.  When politicians just keep pushing the business community over and over, eventually many businesses will start to leave for greener pastures.

Today, there are hordes of formerly great cities all over the “rust belt” that have lost their economic infrastructure.  But instead of changing strategies, many of them just keep on doing the same old things and hope that somehow things will turn around.

It is also very depressing to watch what is happening to the entire state of California.

Over the past 20 years, the state has experienced a net loss of approximately four million residents to other states.

As I wrote about recently, there are a whole host of good reasons to move away from California, but certainly the twisted control freak socialists running the state are one of the primary reasons why so many families are hightailing it out of there.

California just keeps implementing more ridiculous anti-business and anti-family regulations.  The following is a brief excerpt from a recent Wall Street Journal article….

And things will only get worse in the coming years as Democratic Gov. Jerry Brown and his green cadre implement their “smart growth” plans to cram the proletariat into high-density housing. “What I find reprehensible beyond belief is that the people pushing [high-density housing] themselves live in single-family homes and often drive very fancy cars, but want everyone else to live like my grandmother did in Brownsville in Brooklyn in the 1920s,” Mr. Kotkin declares.

“The new regime”—his name for progressive apparatchiks who run California’s government—”wants to destroy the essential reason why people move to California in order to protect their own lifestyles.”

Housing is merely one front of what he calls the “progressive war on the middle class.” Another is the cap-and-trade law AB32, which will raise the cost of energy and drive out manufacturing jobs without making even a dent in global carbon emissions. Then there are the renewable portfolio standards, which mandate that a third of the state’s energy come from renewable sources like wind and the sun by 2020. California’s electricity prices are already 50% higher than the national average.

The funny thing is that Barack Obama likes to point to California as an example of where he wants to take the entire nation.  But a recent Daily Beast article noted how foolish it would be to follow the path that California has chosen….

Obama regularly asserts that green jobs will play a crucial role in the future of the American economy, but California, a trend-setter in the field, has yet to reap such benefits. Green jobs, broadly defined, make up only about 2 percent of jobs in the state—about the same proportion as in Texas. In Silicon Valley, the number of green jobs actually declined between 2003 and 2010. Meanwhile, California’s unemployment rate of 10.9 percent is the nation’s third highest, behind only Nevada and Rhode Island.

When Governor Jerry Brown predicted a half-million green jobs by the end of the decade, even The New York Times deemed it “a pipe dream.”

Obama’s push to nationalize many of California’s economy-stifling green policies has been slowed down, first by the Republican resurgence in 2010 and then by his reelection considerations. But California’s politicians, living in what’s become essentially a one-party state, have doubled down on green orthodoxy. As the president at least tries to cover his flank by claiming to support an “all-in” energy policy, California has simply refused to exploit much of its massive oil and gas resources.

The funny thing is that California is one of the least “green” places in America.  According to a recent article by Les Christie, the five most polluted cities in America are all in California.

So perhaps that should clean up their own act before trying to export their philosophies to the rest of the nation.

As businesses and families leave California in waves, the state is finding itself in a lot of financial trouble.

Once again, the state is facing a much larger than anticipated financial hole in 2012.  So far this year tax receipts are way, way down as a recent Bloomberg article noted….

California personal-income-tax collections in April are falling short of Governor Jerry Brown’s projection by more than $2 billion, data from Controller John Chiang show. The state is already facing a $9.2 billion deficit through June 2013.

With two days to be counted, the state has taken in $6.74 billion since April 1, according to a daily tally on Chiang’s website. Brown’s projection for the month was $9.13 billion.

But as mentioned above, Barack Obama wants the rest of the country to become much more like California.

With each passing day, the United States is becoming even more socialist, and both major political parties are facilitating this transition.

For example, back in the year 2000 social welfare benefits made up approximately 21 percent of all salaries and wages in the United States.

In 2012, social welfare benefits make up approximately 35 percent of all salaries and wages in the United States.

That is a mind blowing shift in just 12 years.

It would be easy to blame Obama for that, but the Republicans actually had control of the White House for most of that time period.

The truth is that both George W. Bush and Barack Obama have steadily moved America in the direction of big government and socialism.

And at the White House Correspondents’ Dinner the other night, Obama joked about “the European-style socialism that he has planned” for his second term.  He joked that it will include “more government handouts, a life of government dependencies, indoctrinating our children, a left wing social agenda” among other things.

Is it really a laughing matter that the entire country is going down the same path that California and Detroit have gone?

Hasn’t enough damage already been done to our economy?

According to a recent Gallup poll, only 60 percent of all Americans say that they have enough money to live comfortably.  That was the lowest level Gallup has ever recorded.

How much worse do things have to get before the American people decide that it is time for a fundamental change of direction?

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  • Pamela

    What is so alarming is that Obama really means what he says about bringing European Socialism to America. Most people nervously laugh when they hear him and think no way would the President of the United States betray this country in that way. He is telling us what he will do before he does it. Wake up America!!!

    • Nexus789

      Another unintelligent comment from an American. You are so brain washed you can’t think for yourself anymore. What is happening to the US has NOTHING to do with the concept of socialism. It is called crony capitalism where the elites have gained control over the political system and government and government does the bidding of the rich and wealthy. Legislation is geared to benefit the wealthy through tax cuts, repeal of laws that do not favor the rich, etc. Obama is a front man for the same people that promoted and supported Bush.

      • http://www.youtube.com/user/pcmiler2000?feature=mhee THE BLACK SHEEP

        You are very correct Nexus789.

      • http://setourchildrenfree.com SetOurChildrenFree

        Nothing to do with socialism? Unitelligent? Your public school credentials are showing! It’s apparent you don’t even know the meaning of the term “socialism.” Sure there will always be rich people who get what they want because they have access to those in power, but please don’t deny the obvious. When you take by force from those who produce and give it to those who don’t, it’s called SOCIALISM, not crony capitalism. If the rich were really calling all the shots, then why do we have the highest corporate tax rate in the world, and have “progressive” individual tax rates that punish those in the top income levels, Einstein?

        • Gary2

          the rich are taxed too low.. You have the IQ of a carrot stick.

          • http://www.vdare.com TDK.E-180

            “the rich are taxed too low..”

            Tes, obviously – as there are still some of them (and some jobs) left in the USA.

            Why not wawe the white flag and surrender to China? Well, maybe you’re simply to lazy and want the POTUS to do it for you…

            Let’s recap: The Soviet Union. China under Mao. Germany under Hitler. The USA and EU of today. I think we have abundant proof to claim that Socialism can best be described as a recipe for disaster.

          • http://www.vdare.com TDK.E-180

            I meant “Yes”, not “Tes”!

          • SandraO

            The rich Hollywood leftist elite (like George Clooney, David Letterman, Will Ferrell, Rosie O’Donnell, Cher, Sean Penn, Sarah Jessica Parker, etc.) who have been raising millions of dollars for the re-election of Obama are taxed way too low. The rich Hollywood leftist elite know damn well that there will always be tax loopholes for them so they won’t have to pay one more cent in taxes than they do now. Meanwhile, dumb and stupid people like Gary2 foolishly believe the Democrats when they say they want to tax the rich.

    • Stan522

      I think you are only partly right…… I don’t think there are enough American’s even paying attention to notice the atrocities this turd POTUS is pulling. Party because it takes real work to find the truth (MSM complicit) and partly they are just too consumed with their own lives to bother.

    • Gary2

      Pam–turn off fox and think for yourself. You are parroting them word for word.

      • SandraO

        Gary turn off the liberal/leftist/Communist/Socialist news media like MSNBC, NBC, CNN, PBS, etc. and think for yourself. You are parroting the liberal/leftist/Communist/Socialists word for word.

        • flippin’ genius

          Are you on meth?

  • Golden Child

    I think about this a lot and can tell you that the problems being felt in California and Detroit are no where near isolated to these areas of the country. The vast growing unequal distribution of wealth in this country is glaringly evident in every major metro area i the country. Maryland supposedly is the richest state i the country, yet Baltimore consistently ranks as one of the top ten poorest counties with over 250K inhabitants. The biggest city in the richest state in the supposedly richest country on the planet should look like Paris. Baltimore is no Paris. Every other rowhome is abandoned and boarded up in Baltimore. A Jamaican friend of mine told me that Baltimore was “just like Kingston”.

    Similarly, although California is mired in a depression, San Francisco is one of the richest cities on the planet. But the huge income disparities in that city are disgusting. San Francisco has of of the highest concentrations of millionaires and billionaires on the planet, yet SF is also home to some of the most crime ridden, polluted, dilapidated and unlivable public housing complexes in America in places like Sunnydale, Potrero Hill and Hunter’s Point; which all have been compared to living conditions in the third world.

    http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/02/02/MNB4RN991.DTL&ao=all

    DC is similar. DC currently has the highest concentration of college educated people of any big city in the country as well as the highest median incomes of any city yet the impoverished Southeast quadrant of the District has the highest recorded unemployment rate of anywhere in America. Welcome to the third world America where the middle class does not exist.

    http://www.mediaite.com/online/bad-timing-washington-d-c-s-average-income-is-now-the-highest-in-america/

    http://www.bloomberg.com/news/2011-03-30/unemployment-rate-in-washington-s-ward-8-is-highest-in-u-s-.html

  • Gary2

    I wish we had European socialism here in America.

    I would especially like to turn America into Norway who beats the USA in almost every measure. We sure pay a lot to be number 37 in the world. Maybe the more socialist countries THAT RANK WAY HIGHER THAN AMERICA in quality of life etc are on to something.

    • mark

      Norway and the other northern European countries are small. Instead of trying to turn the whole US into a socialist state, just go with the state that you live in and see where that will take you. That is what our Founders had in mind to let each state try more of what they wanted to do. You know, a small federal government that had limits set on it and it in turn set limits on what one state could do to another state. That way you, Gary2 could live in your paradise and I could escape fron what I would consider to be a prison and live in another state that loves freedom. But alas, you libs are control freaks and think that if I was sucessful in my freedom loving state with low taxes and government services that you should be able to take my sucess and spend it where you want instead of me as the owner of the wealth doing with it as I please.

      • Gary2

        the blue states way support the red states. You would be living off my dime.

    • Prepping for the Future

      When you moving Gary I’ll toss in $100 bill for your one way flight.

    • http://gatesofvienna.blogspot.com TDK.E-180

      “I wish we had European socialism here in America.

      I would especially like to turn America into Norway who beats the USA in almost every measure.”

      I happen to live in Norway and have done so for all my life (with brief stays abroad).

      I’m not sure what you mean by “European socialism” (as distinct from…?), but I don’t wiah anyone the peril of getting in harm’s way of Socialism.

      I don’t think Socialism ever have worked or ever will, for prolonged periods of time. Thus I hope that my country and the rest of Europe may resist the temptation of becoming even more like the USA – more Socialist, “liberal”, “multicultural”, “diverse”, dysfunctional and repugnant. Things are bad enoguh over here already. To say the least.

  • mondobeyondo

    It is truly sad to see what is happening to some of these places we once held near and dear.

    Stop laughing, Pittsburgh, Cincinatti, Cleveland, etc – you’re about to follow Detroit into the abyss. You are all big, eastern industrial cities, heavily dependent on manufacturing, which has now crashed.

    Los Angeles, San Francisco, Las Vegas, Phoenix, Denver, San Antonio, etc – join the mob. Big, western cities propped up by a housing market on steroids, which has now crashed.

    So, what’s left? Nebraska?

  • Georgiaboy61

    The common link between Detroit and California, is that both have followed, for decades, the “blue” (Democrat) social and economic model. Oh, there are some Republic touches thrown in here-and-there, but mostly, both Detroit the city and California the state behaved as if the good times would never end…. the trouble is, the party always ends and someone gets handed the tab. All of those lavish public pensions, benefits, pay packages, spending without regard to fiscal reality, punitive taxation and anti-business regulations… no sane business person would open a firm in either state. Everyone got just a bit too greedy, and forgot that economic success has to be earned every day, and that it isn’t a birthright. Well, what goes around comes around.

  • jsmith

    This really hits hard Michael. I left Los Angeles for Orange County back in 1978. Now Orange County looks just like Lost Angeles. It is so sad. Welcome to the future.

    • Michael

      Eventually much of the rest of the country will look like LA and Detroit.

      Michael

      • Derp

        I’m just wondering mike do you live in a right wing nut job state like montanna or idaho

  • mondobeyondo

    Short multiple-choice quiz?

    Q. Why did so many people leave Detroit? A few theories to throw in the air:

    Answer #1: The 1967 Detroit riots.
    Answer #2: Motown leaving for Los Angeles in 1972.
    Answer #3: When Eminem made it big, everyone knew the end was near.
    Answer #4: Who’s Henry Ford? Never heard of him.
    Answer #5: A declining homeowners and business owners’ tax base.
    Answer #6: Kate Middleton, Duchess of York, planned it all.

    What are you asking ME for? I don’t know. Personally, I believe it all ended the moment KISS released “Detroit Rock City”. That was the death knell.

  • Concerned Person

    I am so glad my husband and I up and left Michigan when we did. When I was there I tried going on the ironically titled government job website MichiganWorks.gov. hahahaha. Its own statistics on the site listed over 20,000 applicants and only a few hundred jobs. Roughly you had a 5% chance of getting a job. On top of that rent is high and crime is high in the Metro Detroit area, even in the so called “good” neighborhoods. Here is a snapshot of what our life was like before we left. My husband worked a grueling factory job for 9 bucks an hour. Most of his hours were slashed so he sometimes made less than $150 a week. We lived in a tiny 2 bedroom apartment with three kids and the rent was over $700 a month. I had no work. Do the math. We now live in Kansas. We bought our house with a combination of a friend’s gift money (he’s a saint) and our tax refund. It was $5000. It had no running water or even half a roof. My husband, who is a mechanical wizard fixed all that AND rewired the house! What a relief that we never have to worry about rent ever ever again. Sure we are still struggling. I am still underemployed and my husband’s job doesn’t pay a ton. But if we stayed in MI we’d be living in one of those tent cities God forbid.

    • Prepping for the Future

      What a great story. It’s so refreshing to read about people that made things happen instead of looking for a tax the rich welfare scam.

      • Concerned Person

        Thank you:)

  • guido

    I wouldn’t care so much about that cesspool, were it not for the assumption DC will pay for CA’s failure. They should sit in the filth they’ve made and enjoy it without a penny of fedgov tax money.

  • mark

    It all depends on where you live in California. If you live and have wealth, the towns along the coast are ok. The property values on the coast are still expensive. They have clean air and as a real estate developer said to me, he was amazed on how much money some had that live along the coast. I was happy to leave California in 2001. We chose to raise our children where the state made fewer mandates of social lifestyle changes on us. The taxes were too high and the cost of living was also high. I find it interesting that I can buy fresh food at Sherms Thunderbird supermarket in the winter at a lower cost than you can in California where much of the food is grown. Produce from Mexico is cheaper a longer distance away than just over the border in California. This is just one small example of what takes place as we let government continue to grow as in California. The control freaks place more demands on the citizens and higher overhead forces the price of goods to go up. I have never been to Detroit and really don’t like cities. I hope that most of you all still want to live in them so that we in the countryside still might have some peace. I will take my garden over your traffic and air polution any day.

  • Gary2

    Raising taxes on the wealthy would not hurt the economy. Bill Gates will not stop spending or investing because his income is decreased by a couple $100,000.

    The problem of inequality is a related problem to the recession that we are in.

    • Prepping for the Future

      Gary put your money where you big fat lazy mouth is move to Norway. You want the socialist dream go for it no one is ever saying please stay Gary so you can preach tax the rich socialist dream. More then one of us said we would help pay your way out of here. Normay is so great a country Gary put your mouth into action and leave forever.

      • Gary2

        This is my country also and I want to remake it into a better palce to be like Norway who incidently beats this country in almost everything.

        If we want what they have we need to do what they do. I want what they have!

        • http://gatesofvienna.blogspot.com TDK.E-180

          “This is my country also and I want to remake it into a better palce to be like Norway who incidently beats this country in almost everything.

          If we want what they have we need to do what they do. I want what they have!”

          Be careful with what you wish for, because you may get it. Remember the fable about the frogs who desired a king: en.wikipedia.org/wiki/The_Frogs_Who_Desired_a_King

          Extremely bad infrastructure, mass immigration (now having pushed the population number past the 5 million mark!), 75 % membership of the EU without popular agreement in a referendum, bad climate, freedom of expression curtailed, petrol and diesel now at about $9 a gallon, smallest and cheapest VW Transporter minivan now at about $50,000 (or about twice if with more than 3 seats) new, without any accessories…

          I don’t think I would ever think of living in Norway if it wasn’t my country. I don’t think it’s the worst country in the world to live in, but it’s got to be among the five worst in Europe.

          Watch http://www.youtube.com/watch?v=guB1OGWjz1M for starters.

        • SandraO

          What Gary2 wants a Socialist/Communist paradise. Why doesn’t he go to Cuba? He can see first hand how Communism/Socialism really works.

  • Kevin

    Pamela

    The amount of socialism in Europe still allowed business to make profits. People owned their own homes. European crime rates were relatively low as the have nots were kept to a minimum. Europe functioned.

    Free Trade with slave labor nations having a fraction of their standard of living is what made the above unsustainable.

    If we maintain Free Trade with the likes of China and India regardless of adopting or abandoning socialism our standard of living will drop until we meet them. Socialism is just a way of bleeding the haves to give to the created and growing have nots to keep them from revolting until the above can be accomplished.

    • Gary2

      or put another way we need to tax the “winners” in the free trade scam (rich and large corporations) to compensate the “loosers” in the free trade scam-working poor/poor.

      The rich have directly benefitted at the expense of the working class.

      Tax the greedy to help the needy

      • SandraO

        Gary2 is a delusional neo-Marxist fascist! Evil Communist/Socialist dictators like Stalin, Mao, Pol Pot, Hitler, Castro, etc. have all brought on revolutions by claiming that the rich have benefited at the expense of the working class. After the revolution, the evil Communist/Socialist dictators and their cronies control all the wealth at the expense of the working class.

  • http://www.truthstreammedia.com Melissa

    These were not jokes.

  • John

    What’s scarier is the number of people in America that actually believe they want European style socialism. They can’t appreciate freedom until they experience bondage.

  • Colin

    I don’t agree with your belief that progressivism is the same as socialism. I see them as different political philosophies.

    When I read your article, I was thinking about what I had heard on a weekend news program. The Republicans look to the United Kingdom and Spain for inspiration on their economic policy. Both countries’ economies are chronically ill.

  • El Pollo de Oro

    The Banana Republic of America (formerly the USA) has been moving more and more in the direction of big, intrusive government. But what’s happening in the BRA is not “socialism” any more than it is communism, capitalism, free enterprise or rugged individualism. It’s fascism. Pure, naked, raw, kick-you-in-the-face-until-you-bleed-to-death fascism. Benito Mussolini, a.k.a. Il Duce, defined il fascismo as the merger of state and corporate power, which is exactly what we are seeing in the Banana Republic of America. Gerald Celente, Alex Jones, Paul Craig Roberts, Justin Raimondo, Ron Paul, Gary Johnson and Katherine Albrecht have been warning us about undermining the Constitution and expanding the powers of government, and too many Americans have ignored them at their own peril.

    Just this weekend, I was watching a clip of that neocon idiot Bill O’Reilly bashing Alex Jones and saying that if we were truly looking at a police state, he wouldn’t be on the air. Bill-O The Clown needs to learn a thing or two about history. Fascism is usually incremental; fascists don’t necessarily seize total power overnight, but rather, take away your rights gradually until it reaches the point where concentration camps become a painful reality. Today, it’s the Patriot Act and TSA thugs; tomorrow, say hello to concentration camps.

    “These globalists hate humanity and enjoy ugliness and pain and raw power. They love raw power so much.”—Alex Jones

    “The New World Order doesn’t come to steal and rob. It steals and robs to impoverish you, to make you weak so it can enslave you, use you up and ultimately, get away with killing you. This whole global spectrum, world government tentacle system is chains to chain down humanity. An iron curtain of night and totally tyranny is descending upon every nation on Earth right now. The New World Order goes into countries and wrecks the infrastructure and never rebuilds it and brings poverty and mass death. And if you think The New World Order doesn’t plan to do that here, you have another thing coming.”—Alex Jones

    “If people don’t stand up, speak out and find courage within them, it’s the next train to Auschwitz.”—Gerald Celente

    “Next train to Auschwitz, all aboard! Kiss those calories goodbye, because we’re in a fascist state.”—Gerald Celente

    “I don’t think people realize just how evil and what an abomination our country has become.”—Alex Jones

    “Capitalism should not be condemned, since we haven’t had capitalism.”—Ron Paul

    “We are headed straight for a military dictatorship in this country, but it isn’t too late to fight back.”—Justin Raimondo

    “Free-market capitalism, in the blink of an eye, was gutted and replaced by an oligopoly.” —Gerald Celente

    “I fear for the future of this country and this world because it is such a crazy time.”—Alex Jones

    “Justice means just us. Because the police are so impotent, they go after the low-hanging fruit. They bust the chops of everyday people while guys like Jon ‘The Slime’ Corzine slide free like the Goldman Sachs Gang and the JP Morgan Chase criminals.”—Gerald Celente

    This is only the beginning. The police state is becoming increasingly abusive, but the abuses will grow much, much worse. The thugs and violent criminals in the streets will become more and more violent while the government grows more and more tyrannical. God help The Banana Republic of America, collapsing empire of the Third World.

  • jackier

    Read on ‘Freedom Reigns’ website about ‘Drake’. Very eyeopening of what is coming in 2 months. Youtube has lots of talk radio revelations.

  • A.S.

    Once Baby-boomers come into that social welfare pool (we have to give them what was promised them), it may actually increase that amount 2% per year. So, by 2020, we may actually have 47%. It is interesting how part of the GDP is calculated from welfare payments. That means that 1. our GDP is actually 35% less and 2. if Gov’t borrows 40% of what it needs, the other 5% is used for everything else like roads, military, etc. (and gov’t waste).

    I also heard that countries go into default when total paid to interest out of GDP is 7%. If we use US total interest (which includes Federal, States, and Cities) is is 3.8 trillion. US GDP with the 35% which shouldn’t be part of it is 15.14 trillion (so far). So doing the math, we are over 25%! HOW IN THE WORLD IS THE U.S. NOT DEFAULTING YET?

    • http://gatesofvienna.blogspot.com TDK.E-180

      “HOW IN THE WORLD IS THE U.S. NOT DEFAULTING YET?”

      Perhaps because the US$ is a reserve currency.
      For now. That won’t last long!
      Look out! Dark skies on the horizon. Prepare for hyperinflation. Or worse.

  • Gay Veteran

    “…The truth is that both George W. Bush and Barack Obama have steadily moved America in the direction of big government and socialism….”

    big government? yes
    socialism? no, more like corporatism, the merger of corporate and government power (in other words fascism)

    oh, but we’re still free, right?

    NO: http://www.paulcraigroberts.org/2012/04/23/how-liberty-was-lost/

  • Enigmasolved

    I wonder what it will take for people all over the world to see the biblical prophecies coming alive in these days. We all need to reassess our values.. Stop hoarding riches.. cut off the boob tube.. start loving God and people.. We dont go to hell cos we sin.. Anyone that rejects YESHUA as the son of God and just that alone dooms souls. learn to do away with bad beliefs through godly wisdom only found through the loving Word of God a.k.a. Jesus a.k.a. YESHUA a.k.a Lamb of God. He is nothing other than love and hope and peace and joy.. What do you believe in? Religion, rules, or hearing His word speak to you as His gift to each and every person. Prophecy tells the past, present and the future.. Read revelations the last chapter.. Hear the wonderful promises to the ones that overcame the ways, wants, and burdens of the world and came to be with Jesus by reading His word for themselves.. God blessed us with the Word of God so we would not be in the dark on the real meaning of life…
    Maranatha Yeshua..

    • Gary2

      when is Magog returning?? When Gog lets him! Ha HA HA

      Magog is probably swimming in the lake of fire waiting in line to get the mark of the beast! Needs to buy and sell before everyone magically disappears in a rapture.

      I wonder if a rapture comes if it will be accompanied by the Blondie song of the same name???

      There was a remix of Rapture/Riders on the Storm by a group called Rapture Riders. Great tune.

      • MisterC

        Still showing off you very low IQ.

  • Piglet

    I just returned from a trip to Pennsylvania and it looks no better there. Everywhere I went, there were abandoned factories, abandoned rail lines, boarded up businesses, run-down homes, and people looking hopeless. Unfortunately this “de-industrialization” has been going on for a very long time and things aren’t going back to the way they were in previous decades. If this is what a “recovery” looks like, I sure don’t want to see a recession or depression.

    • Michael

      That is sobering to hear.

      Michael

  • Tatiana Covington

    They both suck.

  • Larry

    Fascism is an instance of socialism. The idea is for the glory of the state or collective at the expense of the individual.

    They use vague terms like “controlling the means of production” to spin the fact that the government has complete control over the wealth, resources, industry, and labor of a country. The idea of an individual having any sort of rights or property is erased.

    You could replace the word socialism with fascism or communism and it doesn’t make a spit shine worth of difference. What was the difference between Hitler and Stalin?

    Socialism in any form is pure evil and demonic.

  • Paul vander Horst

    I am writing a book on saving America’s Republic.
    I seek your permission to quote the following article: 25 Horrible Statistics About The U.S. Economy That Barack Obama Does Not Want You To Know.

    May I have your permission?
    Paul

    • Michael

      Paul:

      Of course. I always give permission to others to quote my articles. :)

      Michael