Tuesday, February 08, 2011

Prepare: Will the silent majority adapt?

From the US federal government website(s):

There are 38 million Americans over 65 receiving Social Security
There are 13 million Americans on Social Security Disabled
There are 5 million Americans on Social Security Insurance

There are over 42 million Americans receiving food stamps

There are over 5 million Americans receiving WIC assistance

There millions who receive Section 8 housing vouchers.

There are millions who receive some sort of state aid in addition to federal aid.

These recipients represent the majority of Americans. Many worked and were taxed to finance these programs. Many counted on these programs as they had no choice based upon their wages. Many have taken from these programs for years and have never contributed in a meaningul way to the tax base. Many are part of multiple programs, i.e. disability, food stamps, housing aid, etc.

What's going to happen to all of these people if:

a) the dollar is devalued?
b) the dollar collapses?
c) the US financial system collapses?
d) rampant Zinbabwe style inflation?
e) massive cuts in federal and state entitlement programs?
f) further erosion of the tax base which supports these programs?

Will they adapt? Will they:

1) Move in with family or friends who can support them?
2) Find support from community or church groups?
3) Find another means to replace their income?
4) Resort to dire actions?
5) Other?

This is huge. There are two ships on a collision course. The rest of the world could count on the US to bail them out with loans and aid during financial calamity, but there is no nation on earth which could do the same for the US with the number of recipients listed above.

What is going to happen?


Frugal Queen said...

You may all find your sense of community, work together, build collectives or even embrace socialism and share the massive natural resources that you have with each other. What you describe, is almost like Day zero, or starting again and sometimes it takes the worst disaster ever to bring out the very best in people. A nation full of talented educated people who have always been willing to learn and embrace ideas just may do better than you think.

JD said...

FQ, Thanks for reading and commenting.

I hope some find a solution, but too many of those on the take just shift from one handout source to another. And there will be a glut of those who claim they can't do anything because of this health problem or this problem or another.

Scott R said...

JD, one number I would add to the list would be the total number of people actually working at this time and show a comparison of how many pay to how many collect, I am sure it would be a startling figure.

I am a big believer in that numbers do not lie and the numbers tell me we are in deep kimchi.

JD, would you consider adding me to your blog roll?

Thanks, Scott

Frugal Queen said...

A thought, you'll be bought out by china, don't think they will bail anyone out for anything less than a profit

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