Saturday, September 08, 2012

Saturday, September 01, 2012

Why Paul Ryan is Currently America's Only Hope

The best analysis I've ever heard on America's financial woes comes from a Canadian named Dr. Ian Lee. You can hear him interviewed here.

In a nutshell, this is his summary of what has occurred over the past 15 years or so:

  • During the Bill Clinton years, the federal gov't was taking in about 20% of GDP in taxes and spending about 20% of GDP as well. So things were balanced.
  • George W. Bush reduced taxes such that only about 15% of GDP was being collected but 20% of GDP was still being spent. Not good.
  • Barack Obama then increased spending quite dramatically but didn't increase taxes. As things now stand, about 15% of GDP is being collected but 25% of GDP is being spent. Even worse.
As a rule of thumb, each 1% of America's GDP works out to about $100 Billion. So right now, each year America is spending about $1,000 Billion more than it's taking in. This is unsustainable. It seems very clear that Obama has no intention of deviating away from his past history. America WILL BE bankrupt under his leadership. If Romney is elected and Paul Ryan doesn't turn out to be a TRUE fiscal conservative then America will also be bankrupt under their leadership.