Wednesday, July 15, 2009
Isn't "Defense" The Culprit?
"In contracts with the United Auto Workers, GM promised high wages, lifetime employment, generous pensions and comprehensive health insurance. All this now is ancient history: new workers get skimpier benefits. ... Since 1960, government has changed radically. Then, 52 percent of federal spending went for defense, 26 percent for 'payments to individuals'--the welfare state. By 2008, 61 percent went for 'payments to individuals,' 21 percent for defense. ... Any sober examination of figures like these suggests that the system has promised more than it can realistically deliver. We are borrowing not to finance investment in the future but to pay for today's welfare--present consumption", Robert Samuelson (RS) at Newsweek, 29 June 2009.
Yes, RS. But isn't defense spending "busting the budget"? No. Social security and such will collapse. Bet on it.