Government Handouts Exceed Tax Revenue - The Balloon
 

http://www.foxbusiness.com/markets/2...-tax-revenues/

U.S. households are now getting more in cash handouts from the government than they are paying in taxes for the first time since the Great Depression.

Households received $2.3 trillion in some kind of government support in 2010. That includes expanded unemployment benefits, as well as payments for Social Security, Medicare, Medicaid, and stimulus spending, among other things.

But that’s more than the $2.2 trillion households paid in taxes, an amount that has slumped largely due to the recession, according to an analysis by the Fiscal Times.

Alright, political swipes aside as to who is responsible for this mess, I think it is time we here in the PRACTICAL forum recognize that we are in deep trouble.

We've noticed that food servings are shrinking and prices are staying the same or going up. We've noticed the number of unemployed people in our communities. We've seen all the empty and abandoned homes with for sale signs in their yards. WE know something is going on, despite what we're being told.

How long can your household continue to have more money going out the front door than is coming in? If you're smart you've got a rainy day fund set aside to get you through that period. Think our government does?

The veil should be completely off your eyes by this point. Don't get distracted by who did this to you. Don't worry about their motives. Picking up the phone and calling your senator isn't going to get you out of this mess.

What are you personally going to do to prepare for the inevitable?

Our garden, no debt, raising some meat, saving all we can. we preserve all the extras from the garden. our pantry. learning how to get by on less. Bought bulk seeds, to last a couple of years.

What used to be lawn is a veggie garden now.
trying to get in better physical shape. That is the hard one, though.

I am prepping and not letting my cousins who are the ones receiving the hand outs know about my preps- cause we are the ones scrimping to prep- and they are the ones receiving all the handouts- eating out all the time grrrrrr... wanting to know why we can't go and buy all the fundraiser crap their kids sell... cause 35 bucks is better spent on rice powdered milk and canned meat!

Slowing down the flow of money going out my front door for starters. After that, working more on increasing our family's self reliance as much as we can. Most of our skills can always use improvement. That article doesn't change much for me, other than perhaps fine tuning my focus.

I am of the mindset now that saving money as "money" is worthless- I am putting it into food and preps

Food and preps, yes. I was thinking along the lines of being more careful with where we spend the money. I know that my number one waste of money is from not cooking at home as much as I should- no one shoot me please! I have all of the ingredients for home cooked meals but somehow we end up picking up "quick" meals at least twice each week. Organizing and planning ahead are two skills I need to fine tune in that respect. So when I read an article like the one Ernie posted, it reinforces to me that I need to work on that area. I agree though- you can't eat "money". ;)

No hand outs here.

We are Investing in ways of being as self sufficient as we can. Planting more berry plants, gardening, increasing our livestock, making plans to plant more fruit trees in the fall and increase our garden yield. Thinking outside of the box on a lot of things, experimenting and its working. :)

I agree that you cannot eat money.

ITA- We try TRY to limit eating out to once a month- so it is special- this is the time of yr I EPIC FAIL at that! LOL
like tonight I work until 5- I should have put something in the crockpot, Hubby is working until 830, I will pick up little one at grammys house then pick up bigger one at school from Knowledge Masters and I have the ONE Easter get together planned for little one to decorate cookies at a friends house ... at 530 LOL
not gonna make it on time- I am prolly gonna stop and get lil ceasers a pizza for 5 dollars, I will eat soup here at work but I need to make sure I feed the kiddos- and I don't wanna be late to the friends house since little one is so excited to go-
grant it- 5 bucks for a pizza isn't as much as McDonalds drive thru and we hardly do this- but still I needed to plan for today better!!!
so I completely agree with you!

I am going to start a thread about 'Fast Food' when short of time. So as not to hijak this thread.

cool- can you do it now before I leave from work in 40 min? :bow:

I don't keep a rainy day fund. Not yet. All extra money goes to the mortgage principle. Have shortened the payoff day by several years so far. Debt free, home paid for is the first priority for us.

-Cutting out unnecessary expenses as much as we possibly can; we allow ourselves a couple of luxuries but not many.

-Trying to reduce our consumption and waste of necessary expenses, e.g. reducing electricity usage, left overs, combining trip to save on fuel etc….

-We’re in the process of making our homestead more of a homestead/hobby farm with the goal of being as self-sufficient as possible through growing our fruits and veggies and raising animals.

-Getting into better shape and health through exercise and better nutrition.

-Looking at ways to increase the security of our property and home.

-Keeping abreast of current news.

I don't worry too much about derailing a thread. That's just how conversation flows sometimes. :)

What aggravates me is the people who do it deliberately because they don't want you discussing what you're discussing. I don't reckon we'll see any of that nonsense here.

I have been trying to get in better shape- running eating better cutting wine consumption down wayyyyy low- like once a week LOL
Hubby is getting in better shape walking and biking...

That's Bush's fault.
You let him get away with it and now it's the law
You conservatives are all alike ;)

Temptation has been put before me. I am trying my best to be good and not start 'nonsense'...it is hard. I have a very wicked sense of humor.

walking away before I succumb......:angel:

:duel::duel:


:hrm: :rolleyes: :hammer:

Here is a link to the fast food thread I posted.
http://www.homesteadingtoday.com/sho...d.php?t=393509

I posted it on CF because I was unsure it was right for this forum, did not want to offend, but in hindsight, It would of fit in here as what I am posting takes less fuel to cook and can be done quickly when need be. Sorry.

I dont know how anyone could consider SS and unemployment as a 'government hand out', you were forced to pay into those programs...now when its time to collect your getting a 'hand out'?? No, no way.

The government OWES those people every penny and then some. Or they can just pay them back every dime paid in plus interest commensurate with actual inflation.

As someone who was given a hand out-or hand up whichever you prefer-we used our tax money to get out. Bought chickens for eggs and meat, bought goats for milk and meat, a dehydrator, looking for jars everywhere, increased the garden, have a bottle calf and 2 free martin heifers we got for free, and other things that I can't think of right now.

We are working hard to be self sufficient and shore up places we need to shore up. DH's job could tank at anytime, they just put a million dollars into a mulch plant that is losing money everyday. Luckily, here in the "good ol boy" network he could pick up at odd jobs fairly regularly if he does lose his. I'm just praying he doesn't!

while this may be true, and I am not saying one way or the other, if it is. this thread is for those who will not be getting any thing from the goverment, Or find that the goverment may not be giving any thing to any one.
of course there is some people who don't ever think it will get that bad.
At some point 99 weeks of unemployment becomes a hand out.

Whether you are or not getting a handout, or whether it's really a handout, is not the point I'm trying to make.

If you don't receive any checks from the government, be aware that millions of people are about to not get their checks.

If you do receive checks from the government, be aware that it's about to stop.

Taking a totally unnecessary tangent.

Average age for a man in America is only about 75/76...that means half the guys in the country die before age 76. Many die in their 50's or younger...before they collect a dime. The government keeps all of their contributions.

I would really like to see the statistics on that....including every person who has paid into SS and died before collecting any of it. If the average retired guy retires at 65 and dies at 76...it would be had to make the case that he has received more than he paid in, in just 11 years. Yet those ARE the approximate averages.


Anyway...I know that is not what this thread is about....just sayin.

Scrambling a couple of eggs and toasting a slice of bread takes less time than a stop at a pizza place does, costs less, and it's probably more nutritious, too.

Ernie -- I get where you're coming from, and agree on the "prep" points -- one should prepare, personally, as much as possible to be as self-sufficient as it's possible to be, as early as one can.

But as to a long-term solution -- so long as those SPENDING the money on these "programs" think of the taxpaying public as a limitless coffer of resources, this behaviour will continue. Nay, I would go so far as to say that it will get increasingly worse.

I believe your country had a way of dealing with unfair taxation that was quite effective. Last time was a little over two hundred years ago, wasn't it? I wonder at whether or not the North American public has it in them any longer, though -- we've been coddled and dumbed down and had our brains turned to mush by network television to the point where I don't know if enough people are capable of getting that angry any longer. So long as American Idol is on at the same time every week, and you can still get drive-thru, most people will remain ambivalent.

Not to mention, those collecting the taxes and holding the purse-strings have built themselves a nice little army of folks who will fight tooth and nail for that handout to continue (it's about the only thing that CAN animate them to the point of violence), so those who are carrying the tax burden probably don't stand much of a chance, even if they were willing to fight.

It's sad. The countries of North America, yours and mine, used to be strong and prosperous. It makes me cry, often, to see what we've become, pretty much in the last fifty years. I don't recognize my own country any longer -- even from when I was a kid in the seventies. I'm sure it's the same for you.

Most people I"ve tried to discuss it with think that we SHOULD pay our SHARE of taxes and the gov has a right to tax, tax, tax. Hard to get someone to revolt against something they see as right.

I've been expecting SS to crash any moment for yrs. That is why I made huge sacrifices to be out of debt and have my little farm paid for, with the Lord's help. He blessed my efforts and I did my share.

Hopefully when the balloon really goes up, many of us here will hardly blink.

If you are referring to me, sorry! I didn't mean to go on about being on the dole, I'm just kind of bragging that we found a way to get independent. I know I probably shouldn't brag either but I feel so much better that we can provide for our family without needing a handout. It's like, "yay us!" And ya know if it wasn't for this site and forum we might be in a world of hurt.

Nah, I don't mean anyone. I was just trying to forestall what I foresee is still to come in this thread. :)

I know a lot of good folks who have been forced onto the dole recently because of circumstances beyond their control. I think it's a relative moot point as to whether that's right or not because I believe the whole system is about to come crashing down.

You know, in those numbers from the original article, that shortfall is simply the money OUTGOING. That doesn't even cover their operating expenses. You know, all the civil servants whose whole job is to issue permits and privileges here in this free country. Their salaries.

So the government can't afford the bribes it's spending to stave off revolution and it can't afford to pay its employees. They are faced with two solutions, as I see it:

1. Cut spending
2. Forcibly raise taxes

And when I say forcibly I mean forcibly. We're talking about 50-70% tax rates and armed jackbooted thugs to come kick down your door if you don't pay. And even that will only stave them off for so long. I don't expect that jackbooted thug to go risking his life kicking down doors when his paycheck won't clear the bank.

Soon the system is going to crash and you're going to be living in the former United States. What you'll have to deal with is anyone's guess, but if there's food available in the grocery store it won't be the amount and variety you are accustomed to. And they won't take worthless green paper. All of those things we've outsourced to "experts" such as police protection, fire protection, our children's education, our food supply ... we're going to have to take those things back individually and in very small communities.

You won't even RECOGNIZE your new standard of living compared to what you have now. For some it will be paradise and for some it will be hell on earth. And you have some control over which group you'll be in if you start NOW and don't delay.

We are getting out of debt and selling our old home. I see what you see, Ernie - the only question is how long?? I'm a little panicky these days, but mostly using that energy to get the house for sale in tip-top shape (just a few more days now, thank goodness) and increase my income as much as I am able by getting more large-animal clients. I figure as things get worse those will be good people to have relationships with. Once we get past this I can focus on organizing what we have here and expand the garden. And I pray a lot.

Enlarging the garden, planting a medicinal herb garden, planting more fruit trees and bushes, just got more chickens, working on learning as much as I can in order to have a more self-sufficient lifestyle. Also been talking with some neighbors who are trying to do the same things we are. We're working on teaming up to raise more of a variety. Out of debt now with the exception of DH's vehicle, mine is paid off, and our mortgage, which we pay extra on both of those payments trying to get them paid off earlier.

Humorous. The "OKs" are government responses. I'd add a hallelujah to each response, but that would be excessive.

We are your important big businesses. We want to lobby you for free trade.

OK

That means that many of the lower paying jobs that nobody wants will go to other countries.

OK

That means that if India can put together call centers for technical support of computers, those jobs will go to India.

OK

That means that since a lot of the work will be done outside of the U.S., we will be paying less taxes.

OK

In order to keep our corporations from leaving the U.S. entirely, we want tax "incentives for our corporations, and tax breaks for our highly paid executives.

OK

And we can't afford to pay for employer based health care anymore.

OK

And we don't have jobs for Americans anymore because we shipped the manufacturing equipment to China, where wages are less.

OK

And we don't want to have the government step in and give welfare or emergency medical services to the people in the U.S. out of what little tax money we pay.

OK

And we find it OUTRAGEOUS that this country is in such a financial mess! We DENY any responsibility for the crazy actions of the government!

OK

I'm reminded of a phrase that ends with "...and the horse you rode in on."

I went full time at work and am putting all the increase in income on the mortgage. That is my only debt and I'll feel much better when my home belongs to ME.

eta: In addition, I'm doing the usual prep stuff, increasing the garden and orchard, planning for more water storage and energy independence.

My backyard is almost all garden, we will enlarge it more as we can. We are planting some fruit trees, adding veggies that hopefully will hide well in flowers.
Friends are getting me lots of cannning jars at yard sales, i have my canner, dehydrater.
Trying to pay off some debt and making extra payments on our house and our camper.
We do have an emergency fund for about 6 months worth of expenses if needed.
Our biggest problem was wasteing things, and we have put a total stop to that. Also since hubs and i drive big ole ford trucks we are going to keep one filled with gas and use the other as needed. I can walk anywhere except to the store, and IF i had to do that i would.

We have been through so many rounds of "here is comes". I was a teen in the 70's and watched my parents in panic mode get loads of food storage. We lived on a farm so the rest already came naturally. We were newly-wed college students in the late 70's-early80's and didn't have anything to lose then - I do remember our first home loan was 8% and an ARM which adjusted up twice to 12%.

We have been preparing all our married lives. This round of speculation, we are to the point that we are concentrating on finding ways to raise more food for other people if needed. I don't want to watch anyone go hungry - especially those that cannot help themselves now - what ever will they do when things get worse? I'd love to double the orchard, but we opted for a berry U-pick instead. Hopefully, it will generate us a bit of income as well as provide for a large number of people if needed.

What are you all talking about? I just read today that nothing like a crash is going to happen, it can't, we are too big to fail. (OK, no more sarcasm.)

The thought that keeps coming up is how much of my hard work will be taken? One of my epiphanies (oh for spell check) was reading the Executive Orders on a gov't website. Not stopping the prepping but that does weigh on my mind.

Ernie.... do jack booted thugs make good fertilizer ???

Seriously though....The house is built to run comfortably without electricity. Have a water supply,wood lot, Got the garden going in, not even sure where I'll store all of it yet. Building a small barn to house chickens, rabbits and goats. putting every spare dime towards getting debt free probably wont get there in time though. getting fruit trees either this fall or next spring.
I'm probably one of the ones that would considder it more of a heaven than a hell.
And I lose no sleep at all worrying if any of my hard work will be taken LOL just means more free fertilizer.
And as far as folks in this country being willing to fight ..... I wouldnt welcome the thought but I'll darn sure be there ! It truly saddens me to know that things will never get turned around by using the methods currently in place.( think voting ect.) But I dont think we've seen the last of this great country just quite yet.

I can't help but feel we're running out of time, but I hope we can hold out at least another year-we are still lacking alot of our preps thanks to budget limitations, but we do put some back every month toward preps. It just doesn't seem to be happening fast enough-of course it probably doesn't help that there is 8 of us lol. I just hope we can get what we need before the SHTF.

Something I do, since I work until 4 or 5, is to cook meals on Saturday or Sunday and I freeze meal sized portions of things like chili, bean soups, stews etc... I will take a container out of the freezer in the morning and set it out to thaw. When I get home its just a matter of heating it up. I also bake bread on weekends and freeze loaves. A meal is easy to make when you simply heat it up, slice some bread and make a salad. Much, much cheaper than eating out.

I had started a thread a while back about how things will turn for the worse when the check no longer comes in the mail..
It will be scary indeed. What will people who rely on the government do? Really. This is a HUGE issue that has been weighing heavily on my mind for a while now, especially since I happen to live in the "Welfare State" of CA. Granted we are in a rural area of Northern CA, it is still too close for comfort.

We continue to stock up on food, water, and ammo. I am continually adding to my animal population.

I think before the checks stop coming, most people will discover that the check just won't buy anything. You might get your $400 (I have no idea what a typical check constitutes) and take it to the grocer and discover that it equals a dozen eggs and a load of bread. Or worse, you'd have to choose between eggs or bread.