The 60% future

[Andy62]

In a discussion of economists on CNBC today a figure of 60% came up once the world's economies stabilize. In other words we will be living at 60% of the economic and consumption level we have become used too in recent years which will be due to the credit in the system being reduced. That sounds OK to me.

[MikeNY]

Gordon we need massive reform in the USA. Social Security with SSI and Disability have millions of people collecting without documentation they ever worked, have an illness or disability, the system is broken. This one area represents the majority of Government Welfare in the USA and is not counted in the cash Welfare paid by the federal Government to the tune of $640 Billion that does not include rent subsidy, food stamps, Medicare and Medicaid as well as heat subsidy.

We need Immirgation reform ,our System favors impoverished, uneducated Third Wolder's that become instant Social Welfare clients. We should allow talent from around the world to come here and close the door on muchers and deadbeats from around the world. Illegal Aliens should be deported, maybe we need to change our Laws so citizenship comes from having an American citizen parent and end anchor babies. lets end the quota's and bring in the best and the brightest from around the world to live here. The US could probably save over $2 trillion Dollars just at the federal level.

[Andy62]

There are two areas where I think Obama is going to have trouble implementing his plan:

1. "Cutting the costs of Governement." Every administration tries this with limited success. Once a government program is put in place it acquires numerous individuals and interest groups dependent on it's perpetuation. It creates it's own bureaucracy and the goal of any bureaucracy is the continuation of the bureaucracy . We are still subsidizing the wool industry from the American Civil War.

2. "Increasing the taxes on the rich." The "Laffer Curve" is an economic theory that says that the more you increase taxes the lower percentage that you collect. The wealthy are the smartest, best informed, best connected, best lawyered, and employ the smartest accountants. As a result with perferectly legal tactics they can delay, challenge, and avoid more taxes than those of us in the lower brackets.

[Andy62]

After today's attacks in India this analysis has to be re-evaluated.