Perot Charts – Get the Facts on the State of the America Economy

Many of you may remember Ross Perot from his run for President in 1992. He managed to get national recognition and appeared as the third candidate in the Bush/Clinton/Perot debates.

This post is not to promote him or his political views. It’s about the economic state of America. Mr Perot has a web site called Perot Charts. It is dedicated to informing it’s visitors about the state of the US Economy.

His message isn’t just for America. The whole world will be reliant on the US to get us out of the financial crisis we are in. So grab a cup of coffee and sit back and watch the presentation on The US is on the bring of a Serious Financial Crisis.

It is important to try to understand what has/is happening and what may be the consequences. The presentation explains this is simple terms. In particular it takes a look at;

  • Federal Spending
  • The National Debt
  • Budget Deficits that create the debt
  • Reasons for and long term consequences of long-term deficit spending

Note the data is taken from the US Department of the Treasury at TreasuryDirect, Congressional Budget Office, United States Government Accountability Office and other government sites. The presentation uses information from these sites. They are worth taking a look at if you have not seen them before.

The US National Debt is now over $10 Trillion and that was before the bailouts. Mr Perot has a counter on his web site displaying the National Debt increasing at the rate of more than $1 Billion every day 🙁

Chart 21 talks about Medicare and Medicaid Spending. On current projections with average taxes being 18.4% of GDP but 2043 all taxes will be consumed paying for Medicare and Medicaid. Social Security is NOT included in that projection. Baby Boomers in the US should take note.

These are the “big three” that eat the tax revenue and are expected to grow with Baby Boomers ageing and needing more government help. Can you see why the X Generation don’t like it?

When you realise that within 30 years there will be only two workers for each social security beneficiary you can appreciate the problem. No wonder there are so many X Gen hate articles and blog posts on the web.

This problem alone is why it is so important Baby Boomers protect their nest eggs so they can support themselves for the most part.

The X Gen’ers are slowly taking power. As they do I can appreciate their reluctance to pay for 77 million Baby Boomers to have their body parts replaced so they can play golf well into their 90’s. We are perceived by them as a self-indulgent lot.

Baby Boomers are just beginning to retire so there is still time to fix the problem and not load our kids down with massive debt.

The critical time according to Perot Charts is in 2011. That’s when the first Baby Boomers turn 65 and from then on 10,000 Baby Boomers will be added every day to the Social Security/Medicare band-wagon for the next 20 years. However the workers per retiree will continue to fall.

Obama is a border-line X Gen’er. Right now the current economic crisis has got his attention. Deficits don’t mean anything. It’s all about saving the US economy at any cost – whatever it takes. He plans to carry on the Bush tradition of spending like crazy – all in the US national interest of trying to prevent a deep recession with high unemployment.

I’ve no idea if it will work. If it does we’ll all thank him. If it doesn’t Baby Boomers should make sure they have squirreled away some money to maintain them through what will be tough times.

You can subscribe to Ross Perot’s website and his blog. It helps put things in perspective and may help you plan your future to minimise the impact of what is happening. Knowledge is power as they say.

2 Responses to “Perot Charts – Get the Facts on the State of the America Economy”

  1. Powerful article and one everyone should read. Many Americans have their heads in the sand…and do not want to face what is going on…WHo does????Everyday can be an economic crisis and everyday someone(s) are affected by what is going on. So what can we do???? We also need to hear something positive and good…Enough gloom and doom words will alone bring more issues.

  2. admin says:

    Thanks for your comments Carol.

    I agree with you something positive is needed. But it has to be real not hype.

    Right now it seems there is more downside to go especially with more bailouts to come.

    The positive stuff is all about taking control of what you have and protecting it as best you can until we can see our way through some of this.

    My faith in the US to lead us out of this mess is unfailing. They are the only country in the world that eventually takes its medicine and recovers. Europe and the rest of the world ride on their coat-tails.

    So the sooner the US bites the bullet the better.

    David

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