49.1%: Percent of the population that lives in a household where at least one member received some type of government benefit in the first quarter of 2011.
This will get much worse in future years due to both aging and effects of immigration. Declining per capita income due to rising numbers of Hispanics will cut government tax revenue while increasing the number of people getting taxpayer money for their medical care, child care, food, rent, and other goods and services.
The coming decline in US national per capita GDP is going to cause a US sovereign debt crisis resulting in large cuts to entitlements. Better plan on working more years. Lower your living standard and save more. The rising marginal cost for oil production will make the economic decline even more severe. Marginal costs are already putting a very high floor on oil prices if world oil production is to remain at current levels.
Global inflation might have already pushed the costs of exploring and producing oil from new most expensive projects - known in the industry jargon as the marginal cost of production - above $100 per barrel, according to JBC energy consultancy.
Peak Oil comes when the price of a marginal barrel of oil goes high enough to cause global oil demand to decline. We are getting close to that point. The European currency crisis, demographic problems in the US (see above), and the end of easy fast growth in China are together undermining the ability of the world economy to grow. Without that growth the world economy can't pay continually rising prices for oil.
We live in an era of declining expectations. You can get ahead of that game by adjusting your expectations faster than everyone else does. Expect worse times, lower your living standard, save more, develop a better skill set.
|Share |||By Randall Parker at 2012 May 27 10:22 AM Economics Entitlements|