2012 May 27 Sunday
Approaching Half Of US Households On Government Benefit

Our ratio of parasite to productive is getting too high.

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


Comments
A Gentle,Bearded Left-Winger. said at May 27, 2012 2:21 PM:

Of course, the WSJ and 'The Economist' (cunts), will still maintain that MASSIVE uncontrolled non-white immigration 'benefits' America.

Wolf-Dog said at May 27, 2012 7:57 PM:


One reason for this situation is the fact that the US is running a severe trade deficit year after year. This kind of trade deficit also means loss of jobs or reasonably sufficient jobs to pay the bills. After the elections it is guaranteed that there will be more focus on this issue of trade deficit. Besides unnecessary artificial components added to the college tuition fees, the reason the cost of college is going up especially in state universities is because there is lack of government money to support state universities, and this is in part due to foreign trade deficit (indirectly but very much so).

Leno said at June 4, 2012 4:24 PM:

The US is really on a sharp decline.

Or is it just its middle class?? When a country's middle class dies, the soul of that country also dies.


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