Search
 

Think About The Longer Term Situation

The trends of the deficit and other factors in the US make the long term investment outcome very dubious

By Joel Ross | Updated on April 19, 2014

Since the deal cut by Congress to do nothing on the deficit for another two years, you hear nothing at all about it leading up to the November election. However, it is not that the deficit is shrinking. It is just racing upward less fast. This will accelerate when the recent budget deal expires, and the rise of the deficit again moves up at a rate that is crippling. Right now, the Fed is essentially carrying the US government by keeping rates historically low. If the ten year were once again around a more normal 5%, the interest burden would quite simply consume the budget and make it impossible to provide many of the services people have come to demand. 

Instead of dealing with reality, all we hear is income inequality, women are grossly underpaid, we need to raise taxes, etc. So here is some of the reality. Only 58.9% of the population works and earns money. Only about Only 86 million people, 27% of the population, pays taxes. 49.2% get some money from some government entity. 70 million people are on Medicaid with another 16 million projected to join them due to Obamacare. That will mean there will be as many people on Medicaid as pay taxes. Add on another 50 million receiving Medicare going to 73 million. 47 million receive food stamps and the administration runs programs to sign up more people. 

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.