E A Market Crash Could Hurt IRA Owners

Many Americans could be entering into the third--and perhaps terminal--stage of dependency on big, centralized government that's been growing for half a century.

The first stage came during the "guns and butter" administration of President Lyndon Johnson, who attempted to simultaneously win two unwinnable wars--the  Vietnamese War, and the War on Poverty.  Johnson considered himself a master politician, and saw his Civil Rights legislation and  "Great Society" entitlement programs as the way to get blacks to be loyal Democratic voters for decades.  

The problem is that humans of every age, race, and sex are attracted to free stuff, quickly becoming addicted to it.  Crafty politicians know that promising more free stuff to voters wont hurt them at the ballot box.  Alas, though, the reality is that stuff that's free to some will always be an expense for others.  The government's free stuff had to be paid for, and just as with families that live beyond their means, Congress resorted to borrowing and debt...ever more massive borrowing, inexorably followed by an ever mounting debt that has reached $20 trillion (one trillion is a million million) dollars with no real ceiling in sight.

As a nation, we're dependent on other nations' good will and generosity, but we can't repay what we've borrowed, and if interest rates rise substantially we may not even be able to pay the interest on what we've borrowed.  We aren't coming close to generating the Gross Domestic Product (GDP) to pay our way.  So, how--and how long-- can a nation that can't pay its bills continue to afford 700--800 global military bases and an increasingly dependent citizenry?

The second stage of dependency sneaked up on us in the late 1970s.  Up until that time the post-war boom had meant rising wages, which masked the rising inflation.  Real income of US workers flattened out

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Dr. Leonardo Pascual 1 year ago Member's comment

Good stuff, got any more?