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 didnâ€™t start out as a pyramid scheme, but in fact thatâ€™s 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 wouldnâ€™t work if the younger ignorant generation didnâ€™t 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 itâ€™s a way of effectively providing a subsidy for the oldsters, but now itâ€™s also providing healthcare for the poor who previously couldnâ€™t afford any kind of insurance. So why would you want to do that? Because itâ€™s 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 â€œcredits.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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