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Government Handouts Exceed Tax Revenue - The Balloon

2.5K views 56 replies 37 participants last post by  cast iron  
#1 ·
http://www.foxbusiness.com/markets/2011/04/20/government-cash-handouts-exceed-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?
 
#2 ·
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.
 
#3 ·
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!
 
#5 ·
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
 
#6 ·
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". ;)
 
#7 ·
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.
 
#8 ·
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". ;)
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!
 
#11 ·
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.
 
#12 ·
-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.
 
#14 ·
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...
 
#16 ·
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.
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:
 
#19 · (Edited)
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.
 
#20 ·
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!
 
#21 ·
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.
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.
 
#22 ·
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.
 
#24 ·
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.
 
#25 ·
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.
 
#26 ·
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.