Thursday, October 18, 2007

How Soon is Soon?

Here is a perfectly sensible article, where I will start to reach into the Ozone in explanation of it. The first item is that one measure states the 30 Industrialized Countries averaged 36.2% of GDP going to taxes–including the United States. Is the measure correct? No–but the Error is on the low side with the actual Average closer to 40%.The second probability states that Government Spending has produced at least 50% of the increase in worldwide Corporate Profits since 2000. The third high probability states approximately 70% of the Cost increase in Health Care since 1965 have come from Government personal welfare programs; the real Cost of Drugs and Medical Equipment is no higher than the Norm in the Chemical and Technology industries. The fourth Protocol statement says the Bush Tax Cuts were a big Lie, simply altering and hiding the increased impact of Taxation. The last on-the-ground evaluation is that Profits-Taking absorb at least 30% of all Government expenditures, and in-house provision of Government Services probably costs only half at much as Outsourcing Government Services through Private Sector agencies. Everyone in the Corporate world will claim I have no proof, and well, the Proof resides in internal Corporate records.

The article states that the Cost of Government has risen over 20% since 1975, a Statement which might not check all the Expenditures of Government; the adjustment for Inflation will only go so far, and all elements of Government Spending are up substantially. One must remember that provision of Government services have increased every year through the Period, Enrollees on each Government program have increased every year of the Period, the charges of Service Providers has increased every year of the Period, and Pork Barrel has become an Art form. Taxpayers need to forget the high Taxes, and roust the Government officials who have brought the excess expenditures.

The Comments of C. Eugene Steurele should be studied in the article. The Income inequality which initially propelled Tax revenue increases will fail under increasing Inflation. Government expenditures fueled the Profitability which paid the increased Tax revenues, but only with a Government commitment to provision of Services, which cannot be supplied under Inflationary conditions without raising Tax rates. The Bush administration is currently supplying this overall provision of Services by Debt accumulation, but this process will fail in the immediate future; foreign Buyers of American Debt will disappear under a declining Dollar. We are in an evolving Crisis, which will reach a climax in the near future. lgl

No comments: