The problem with social spending is that it works like a pyramid scheme although people like to deny that it exists in the United States. The Democrats like to point out that it didnât start out as a pyramid scheme, but in fact thatâs not true. After all it was the Republicans that turned it into a pyramid scheme of social spending in the United States by denuding all of the public trust funds in the 1980s.
After all the grossly misnamed Affordable Healthcare Act a/k/a Obama Care wouldnât work if the younger ignorant generation didnât sign up to support the older sicker generation.
The reason there is such a push to get the younger people to sign up is not just because itâs a way of effectively providing a subsidy for the oldsters, but now itâs also providing healthcare for the poor who previously couldnât afford any kind of insurance. So why would you want to do that? Because itâs politically popular for a progressive Democrat.
Nevertheless Obama has to get beyond his base, which is the 47% have-nots who represent the net "debits" of the country who are supported by the 53% of the population who are the "credits" so to speak. In order to do that he comes up with a lot of progressive-sounding legislation that sounds good to the 20-Something Unwashed âcredits.â The question is -- will they buy into this pyramid scheme -- or not?
For the rest of this column by Independent Political, Economic & Market Analyst Al Martin, click here -- Al Martin Raw
* AL MARTIN, author of "The Conspirators: Secrets of an Iran Contra Insider," is an Independent Political-Economic Analyst with 25 years of experience as a trader on NYMEX, CME, CBOT and CFTC. He is also currently trading the commodity futures market day and night and has a teleconferencing service to facilitate transactions in the markets. This is a service for independent experienced traders.
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