Tuesday, August 2, 2011

How will Obama pay for his welfare state ?

Obama's first term was all about putting the building blocks in place for his European style welfare state. That's why the Health Care Bill was important enough to be pushed through using political trickery, "cloture". Let's not forget the democrats controlled all three branches of government and could not legally pass that monstrosity. But it is key to building the welfare state, and had to be put in place. Entitlements once on the books can almost never be taken back. Even if sometime after the 2012 elections Republicans manage to get control of all three branches of government, it's not clear they would ever be able to kill the Health Care bill.

Cap and Trade is still on the agenda

Cap and Trade would have been a major source of funding for the Obama's Franco-German welfare state, along with the VAT tax. Cap and Trade is dead for now, but the media will continue tp push the Global warming fear mongering campaign, and the government will continue to spread it's propaganda, if the right crisis or opportunity arises, they will be ready to try and capitalize on it and pass Cap and Trade.

The European welfare state requires huge levels of public spending and taxation. Public spending in France, Italy and Sweden is more than 50% of GDP. Germany provides the lower boundary at a "modest" 48%. Some of this public spending goes to the unfortunate, but the bulk goes to the middle class for retirement and health benefits.


If Obama wins re-election the Vat Tax may be the next.

The VAT tax almost certainly will be among the first issues that will Obama will push if he is re-elected. The VAT tax has now become even more important since Cap and Trade has died. Obama is desperate and need funds, he is looking at every option. Another avenue is energy, and gas taxes. Obama and the Dept of Energy are looking at imposing punitive taxes on gas as well as other types of fossil fuel energy sources, all in the name of pushing "green energy" and will claim those taxes will to that cause, but will slowly disappear into the general fund and make their way into the welfare and entitlement programs.

Obama sees defense spending as a cash cow waiting to be slaughtered, and the money used to fund his welfare programs.

And lastly the Health Care bill itself will provide a source of funding, with the government taking on food and health by taxing and regulating so-called "un-healthy" foods, that it will claim adds to our health care costs.


It's only going to get worse.

If Obama wins re-election don't look for the class-warfare to end, it will only increase. Obama needs to implement the last pillars of his Welfare state. The pillars of the European welfare state are state retirement (often at relatively young ages), universal state health care,and entitlements for poverty and unemployment that are virtually unrestricted by calendar limits. And massive amounts of funds must be found to pay for it.


Please also consider :

Obama Has Nearly Achieved His European Welfare State

Many view the Obama presidency as a failure, but not if you are a progressive liberal, Marxist, or Socialist. Obama has massively increased the welfare state, and he knows full well that once it is implemented, it just keeps growing, and is almost impossible to stop.

George Orwell only got two things wrong, the method and the decade.

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