State and local government spending:
Add in Federal spending and you get about $6 trillion, or about 40% of GDP:
Here is Federal debt “owed to the public,” i.e. external debt that accrues interest and must be rolled over in Treasury auctions:
And last but not least, total credit market debt, public and private. This does not include an estimated $200 trillion in unfunded liabilities, i.e. future obligations that will have to be paid with either taxes or more borrowing.
As the state borrows trillions of dollars to support its aristocracy and dependents, its debt skyrockets. The political aristocracy expects the tax donkeys will carry a heavier burden without revolting and the 60% “tyranny of the majority” who pay little but collect enough to get by will be wary of risking their benefits by resisting the existing political-financial kleptocracy.
In terms of democracy, the tax donkeys are trapped; they can't match the tens of millions in political contributions of the top .5%, and the 60% below them will support the status quo out of fear that the alternative could be even worse.
Politically, the system is unbreakable. Financially, it is unsustainable.
Regards,
Richard
