A Committee of Correspondence

A Committee of Correspondence

Oops, Where did the Money Go

Another thing the Obama Administration ain’t telling the public, government revenues are down, way down.  It was bad enough when the Federal income was steady, but now it’s worse.

“Other figures in an Associated Press analysis underscore the recession’s impact: Individual income tax receipts are down 22 percent from a year ago. Corporate income taxes are down 57 percent. Social Security tax receipts could drop for only the second time since 1940, and Medicare taxes are on pace to drop for only the third time ever.

The last time the government’s revenues were this bleak, the year was 1932 in the midst of the Depression.” (AP via Yahoo News, Aug 4, 2009).

This will  grow the Federal Deficit even more! Now our as yet unborn great-great-grandchildren will also be in hock up to their eye balls.

Moreover, when the economy recovers it will be some time before Federal revenues recover.  I don’t know what the lag will be, but first there will be an expansion of demand, then jobs will return, then corporate profits will increase.  There will be some time between the increase in demand and the increase in production as companies hire, open facilities, and train new employees.  Then there is the time it takes to get the product out. Finally, there is the time it takes for the sales to be paid for.  All of this is dependent on credit availability, of course, which adds an unquantifiable delay to the  precess.  The whole thing could mean that Federal revenues could remain depressed for years after the recovery starts.

Are you willing to bet your freedom on this? Because that is what the current administration is asking you to do.


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