The US Has Too Many Consumers And Not Enough Producers
The U.S. economic recession ended in July of 2009, but you wouldn’t know it from the statistics. In July of 2009, there were 504 workers for every 1,000 Americans. Three years later in July 2012, there were only 494 workers for every 1,000 in population.
Thus since the recession ended, approximately 93,000 workers per month left the labor market while slightly more than 38,000 workers per month found jobs. Post recession statistics also show 291,000 per month were added to the food stamp rolls, and 12,000 per month began receiving social security disability pay.
With more than 300,000 baby boomers reaching retirement age each month, the question becomes, who will pay the cost of government, including benefits such as social security, Medicare, food stamps, and disability income? As it presently stands, it will certainly not come from income tax payers since almost 50 percent of workers currently pay no income taxes.
With the current U.S. federal debt exceeding $16 trillion, or $120,000 per worker, the idea that the “rich” can pay while the middle and low income groups escape is not credible. In addition to putting the brakes on federal spending growth, what is needed is a plan that reduces rates, eliminates exemptions (so called loopholes) and broadens the number of Americans paying income taxes. The U.S. has too many individuals in the economic wagon with too few pushing that wagon and it’s getting worse.
Ernest Goss is a professor of economics at Nebraska’s Creighton University and holder of the Jack A. MacAllister Endowed Chair in Regional Economics. You can read his blog here.Tags: Economy, jobs