Video: The Greecing of America, Simplified
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Greece is living out a fiscal nightmare. Violent, deadly riots in protest of the Greek government have erupted in the streets of Athens. How did things get so bad? And could it possibly happen in the US?
We answer these critical questions in our new short video “The Greecing of America, Simplified” – which shows how the Greek crisis came to be and how the U.S.’s spending and debt problems compare.
As is illustrated in the video, the problem in Greece is that its government has created a society heavily dependent on government spending. The Greek government spends a lot of its taxpayers’ Euros on retired workers. But Greece’s population is aging, meaning less workers to pay for more retirees, so there’s no way the government can pay for its spending promises to the retirees.
Rather than learning from the failed efforts in Greece and other European countries, the United States is doing the exact same thing. Like Greece, the US is promising money that it does not have to an aging population.
As a result, total U.S. government spending as a percent of the economy has risen to 41.5%. That’s not far below the levels of Greece (51.3%) and the European Union (50.7%). And it’s far above the recommended level of 25% or less.
In 10 years, this overspending will lead to a debt that’s 90% of the size of the US economy. A broader measure from the International Monetary Fund forecasts a more pessimistic debt level of over 100% within just five years. Either way, that’s not far below Greece’s level today (115%). It’s more than the European Union (79%). And it’s far above the recommended level of 60% or less.
It’s too late for Greece. It’s not too late for us…but it will be soon. We must cut spending to avoid a fiscal nightmare like Greece is now experiencing. If you enjoy our video, please pass it along to others.
Source: Bankrupting America
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WAKE UP: Paul Volcker Says Time Is Running Out for U.S. to Tackle Coming Entitlement Crisis
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According to a recent poll, 74 percent of likely voters are extremely or very concerned about the current level of government spending. And 58 percent think the level of spending is unsustainable.
Is the public right? Is Washington bankrupting America? Some facts from the video:
Spending per household has risen over 40 percent in the last 10 years and is set to do so again in the next 10 pushing debt (and interest on the debt) to unprecedented levels. But that's just a result of PAST spending...
Our government owes $106 trillion in FUTURE spending commitments - that cannot be paid for.
We can solve it, but politicians will have to make tough choices. Increasing taxes can't do the trick ($106 trillion is equivalent to taking all of the taxable income from every American nine times over), nor is it fair to saddle taxpayers with a problem created by government irresponsibility.
We need real spending reform. Merely returning to the spending per household levels of the 1990s would balance the budget in three years.
Reform can only be achieved if the public is informed and engaged.
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February 01, 2010 — He's usually spooked by his shadow. But with a $3.8 trillion budget released the day before Groundhog Day, Punxsutawney Phil has other reasons for being spooked.
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Also from Bankrupting America:
New Jersey Part One: the making of a financial disaster
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PLEASE email, facebook, re-tweet, share and take our stories with you when you leave. Our only weapon against the madness is GREATER AWARENESS. Just by sending this story to a few friends, you'll be contributing to the formation of an aggressive, educated voter base that understands the economic peril of our failed debt, deficit and spending policies. Thank you.
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