Mark Perry has a wonderful graph (in the spirit of this one) that shows the US as a house of cards. Defense spending isn’t the problem: it constitutes less than 15% of Federal spending. 2/3 of Federal spending, however, is in the form of buying votes. That is, most Federal spending is taking money from one group and giving it to another.
The wealthy are vastly outnumbered by the less wealthy – it is politically easy and savvy to take from the rich and give to the poor. Class warfare is disgusting and destructive. Who will stand up for the rich?
Here is the spot-on conclusion reposted in Mark’s post but originally penned by IBD writer John Merline:
“When you put these two trends together, what you find is that the federal government has over the years essentially turned into a gigantic wealth-transfer machine — taking money from a shrinking pool of taxpayers and giving it out to a growing list of favored groups. This situation will make getting the federal budget under control increasingly difficult, since it will invariably involve pitting those writing checks against those cashing them.”
Soon we’ll all be Greeks.