The Beginning Of The End
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11 Signs That The U.S. Government Has Become An Overgrown Monstrosity That Almost Every American Is Dependent Upon For Economic Survival

Today, the number of Americans who are able to financially survive without any reliance on the U.S. government whatsoever is declining at a staggering rate.  Whether it is through direct handouts, entitlement programs, student loans, government bailouts, government contracts or direct employment, the truth is that now a solid majority of the American people are at least partially dependent on the federal government for their economic survival.  The sad thing is that the majority of the American people say that there is too much government in their lives when opinion polls are taken, but if you try to take the government check that they are getting away from them those same people will scream bloody murder.  But the truth is that it is getting to be really, really hard to be completely independent of the U.S. government economically.  That is because the U.S. government has their hands in almost everything.  The ideal of a "limited federal government" has long since faded away.  Very few people seem to believe in it anymore.  Instead, Americans today look to the federal government as the answer to all of our problems, as the provider of all of our needs, and as the regulator of every single detail of our lives. 

The U.S. government has become the "Big Mother" that we all scramble to for a handout when we get into trouble.

When you sit down and really analyze it, you quickly realize that there is no way that the U.S. government can be extricated from the U.S. economy now.  Instead of the free enterprise system that we once had in this country, today we have a situation where the U.S. government has become the very core of the economy.  It is the hub around which everything else in the economy revolves.

You don't believe this?

The following are 11 signs that the U.S. government has become an overgrown monstrosity that almost every American is dependent upon for economic survival.... 

#1) The Explosion Of Government Handouts

39.68 million Americans are now on food stamps.  Millions of others are completely dependent on the extended unemployment benefits that they are receiving.  Millions of other Americans are able to survive financially because of the dozens of other welfare programs that the U.S. government subsidizes.  More Americans are receiving some form of welfare than ever before in history, and each month the numbers continue to go up.  Could there come a day when we all receive government handouts every month?

#2) The Entitlements Programs That Threaten To Destroy U.S. Government Finances

Entitlements are the single biggest U.S. government expense.  These programs include Social Security, Medicare, Medicaid and other social Ponzi schemes.  Tens of millions of Americans receive government assistance through these programs.  In fact, nearly 51 million Americans received $672 billion in Social Security benefits in 2009.  We all have friends or family members who receive these kinds of payments.  But cutting so many people a check year after year is slowly but surely destroying U.S. government finances.  According to an official U.S. government report, rapidly growing interest costs on the national debt together with spending on major entitlement programs will absorb approximately 92 cents of every dollar of federal revenue by the year 2019.  That is before a penny is spent on anything else.  This is clearly not a sustainable financial situation by any definition, but who wants to tell tens of millions of Americans that their checks are going to be reduced?

#3) The U.S. Government Is Now Even Paying Mortgages

Yes, you read that right.  As part of the "stimulus" package, the U.S. government is going to send money to some of the states that were hit the hardest by the real estate crisis.  So what is that money going to be used for?  Well, Florida, Michigan, California and Arizona have all announced that they plan to use $1.4 billion the Obama administration is sending their way to help the unemployed and the "underwater" pay their mortgages.

#4) Without The Student Loan Program A Huge Percentage Of College Students Would Not Get An Education

The federal student loan program (which was recently entirely nationalized) helps millions of college students pay for their education.  Without this assistance by the government, a lot less students would be going to college.  In fact, many of you that are reading this article directly benefited from the federal student loan program.

#5) The Bailout Of AIG

One of the biggest insurance companies in the world, AIG, would not be in existence today if not for direct federal government intervention.  It kind of makes you wonder what George Washington and Thomas Jefferson would think about a federal government that hands big bags of cash to a giant insurance company so that it can survive.  Whether it was so they could pay off their debts to Goldman Sachs or whether it was so that they could keep paying out record-setting bonuses, the truth is that AIG would not have made it without the federal government stepping in.

#6) The "Too Big To Fail" Banks

But it wasn't just AIG that got bailed out.  A number of big banks may have gone under if not for the U.S. government.  The U.S. government decided that they were "too big to fail".  Well, what about all the small banks that are going under?  The truth is that they are "too small to bother with".  We now live in a nation where the U.S. government is the one who decides which banks live and which banks die like dogs.  Doesn't that just make you feel all warm and fuzzy?

#7) The Bailout Of General Motors

But not only does the federal government bail out financial institutions - it is also now in the car business.  Yes, grand old General Motors may have ended up on the scrap heap of history if not for the U.S. government stepping in.  So if you work for General Motors or if you work for any company that does business with General Motors, you can thank Uncle Sam for the fact that you still have a job.

#8) The Bailouts Of Fannie Mae and Freddie Mac

If the U.S. government had not bailed out Fannie Mae and Freddie Mac, we may not have much of a mortgage industry at this point at all.  According to Inside Mortgage Finance, government-related entities backed 96.5% of all home loans during the first quarter of 2010, which was up from 90% in 2009.  So if you borrowed money to buy a home over the past couple of years, there is a very strong likelihood that the U.S. government was involved.

#9) The U.S. Government - The Nation's Biggest Employer

According to the Bureau of Labor Statistics, approximately 2 million civilians work for the federal government, excluding the Postal Service.  When you add in all U.S. military personnel, that number goes much higher. 

The truth is that as the government continues to expand (become more bloated), more Americans than ever are hopping aboard the gravy train.  Today, the average federal worker now earns about twice as much as the average worker in the private sector.  So if you want to do little work, produce little of real value and enjoy super cushy benefits, maybe you should apply for a job with the federal government too.

#10) Millions Of Americans Are Employed By Firms That Rely On Government Contracts

When considering the impact of the U.S. government on the economy, you can't forget the hundreds of companies that would go out of business if their U.S. government contracts were taken away.  There are literally millions of people who work for companies that do business with the government.  If the government disappeared it would cause economic chaos for those firms.  The truth is that a whole lot of people make a really good living plugging into the sweetest revenue source of them all - the U.S. government.

#11) The U.S. Government Takeover Of The Health Care System

The U.S. government takeover of the health care system is going to fundamentally change the economics of the health care industry.  The U.S. government will now play a major role in deciding which hospitals get built and which do not.  Approximately 17% of U.S. GDP is spent on health care, and now the U.S. government has unprecedented control over where that money goes.  Over a dozen new taxes have been established by the new health care reform law, and the U.S. government is going to pour an unprecedented amount of money into the system.  So will this result in all of us getting better health care?  We'll just have to wait and see.

The truth is that the Founding Fathers never envisioned a federal government that completely dominated that national economy.  But that is what we have got.  As of now, only a very small percentage of Americans are still able to say that they are completely financially independent of the U.S. government. 

You see, in economic terms the U.S. government is not just the elephant in the room.  It is the elephant that sat on the room and nearly suffocated everything else out of existence.

As Americans, we live in an economy that is so intertwined with the government that it is impossible to separate the two anymore.

But the really bad news is that the U.S. government is in massive financial trouble.  According to one new report, the U.S. national debt will reach 100 percent of GDP by the year 2015.  Many economists regard that as an incredibly dangerous threshold to cross.

If U.S. government finances collapse, it will mean the collapse of the entire U.S. economy as well.  There is simply no separating the two.  And considering the fact that the U.S. government has piled up the biggest mountain of debt in the history of the world, things don't look promising.

America is headed for an unprecedented economic collapse, and the U.S. government is leading the way.  If you can get financially independent, now is the time to try to do that, but the reality is that we will all feel massive economic pain when this thing comes crashing down.

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  • sharonsj

    The problems you list are enormous. The irony is that the government is now trying to save the very people it has put in these positions.

    For 30 years government has favored corporations over people. We now have a country where it is difficult to find a decent-paying job, afford a house or a college education, and pay for health care. It’s dole out the food stamps, the unemployment checks, etc., or there will be rioting.

    However, it is the corporations who have actually screwed this country. They have no allegiance to America–their goal is for the CEOs and upper management to stuff their pockets with as much quick money as possible–and they don’t care who they destroy or even kill in the process.

    If you want to change things, take all your investments out of the stock market, pensions, and bank accounts. Go to credit unions, buy things of value, or even stuff it in a mattress. But to say that government should stop helping people is ridiculous.

  • Dave Wedemeyer

    You forgot to mention farm subsidies.

  • james m. convey

    This is just so much nonsense and filled with misinformation. Nearly all you list are essential, and represent in most cases, only partial and ‘disappearing’ assistance programs, that have had nothing other than beneficial effects upon the infrastructure, health and education sectors of the country. To include the Army is of course just adding an additional factor of inanity to your overall idiotic rant. The Army has been the responsibility of the government, since the creation of the Republic and is an essential service. Certainly you cannot suggest otherwise.
    I would suggest that instead of raving about the role that the government has been increasingly forced to play in American society, you look to the real culprits in the dissembling of the republic. The corporate sector, in it’s incessant greed for more and more profits, ostensibly for it’s shareholders, supported by the international banking cartels, began 30 years ago to look overseas for cheap labor to manufacture their products. When they did, they simply closed their American factories! The devastation to the American workforce and the subsequent need for the government to step into the breach, can be laid at their feet and their lobbyists from the past and even today. They have been equally rewarded by the supreme court just recently, and seemingly can continue to do their evil, unencumbered by the peoples needs. The destruction of the U.S. manufacturing dynamic was not caused by the government.
    The Government has become the last hope of the nation to rebuild a devastated private sector economy, and we must thank God that at least, ‘we the people’, still have a government we can influence at the voting booth. That is democracy! We can’t fire senior oil or bank executives every 4 years!
    Equally your comments about the supposed “Govt takeover of healthcare ” is nonsense, as the Corporate insurance sector (unfortunately) and the uninsured are the only beneficiaries of this legislation. Health Insurance is still a private function (unfortunately), but it’s inefficiencies and inhumane approach to service provision, has been altered and for the better benefit of the people! That is Governments job! Your whole piece reads like a party political broadcast for the extreme right, and seeks to add support to that already dishonored idiocy of the superiority of the free market over the rights of the people! The results of this Libertarian nonsense about the evils of government are obvious to all Americans and change is coming. Good government, overseeing a truly entrepreneurial America, as it once was before corporatism, is a more worthy goal, than securing the profits of a few sociopathic and unaligned corporations. Equally we cannot return to a pastoral America where each one runs the family farm and swing music is still in vogue. Get real about the Realities of a Global marketplace and start realizing that the challenges are no longer just about American domesticity! We need to retool and get back in the game.We need strong leadership who understand that, and we can’t rely upon the charlatans that got us to the point we are at right now. Bankers and corporate criminals don’t care, and we the people need to help our government to make the changes required. I’d rather put my effort into that ideal as opposed to helping you destroy the one thing we still have some influence over “our government”.

  • Janet

    Welllllllll, if industry had not been allowed SEND ALL OF OUR JOBS OVERSEES, perhaps people would be working and making a DECENT wage.

    The problem is greedy corporations, banksters, and corrupt government officials. Congress does their “work” now in secret, at night behind closed doors. Evil, evil, evil.

  • http://lunaticfringe-brian.blogspot.com/ Lunatic, What Comes from the Fringe

    For the past few years, I have been writing about many of the topics written about on this blog. I think that’s why, Economic Collapse, has become one of my favorite reads.

    One of the basic problems of government is that we simply haven’t given it a job description. In fact, government only exists for the safety, perhaps health, and order of its citizens. That’s it. And nobody including the Supreme Court, enforces that.

    Simple, huh?

    If government acts beyond the scope of it’s power and intent, let’s use student loans as an example, then it has over reached it’s boundaries. Student loans have absolutely nothing to do with the safety and order of our citizens. If you’ll use that definition- what you will find in most of the items listed in this piece, is a government acting beyond the scope of it’s duties.

    In fact, re-writing and adhering to that job description is key to reining in government. Putting banks in receivership is a stretch, bailing them out would simply not be an allowable use. Nor would issuing student loans. Nor would be my favorite and complete and total waste of billions, the energy commission which has achieved virtually nothing in it lifespan.

    Your article speaks volumes about a government gone berserk…wrapping it’s tentacles around everything…far beyond that of its original intent.

  • http://www.katablog.com katablog.com

    The only point I disagree with is that of social security. Some people and their employers paid into social security and if they had been allowed to take that money for 50 years and invest it, their take home would be even larger.

    Now I realize the SSI and other programs allow children of deceased parents receive checks, provide benefits to children whose parents aren’t working and the child has been declared with a handicap of one sort or another (some imagined). And this greatly draws down the fund, but let’s not lump those that paid in and receive benefits as drawing off the government teat.

  • http://lunaticfringe-brian.blogspot.com/ Lunatic, What Comes from the Fringe

    To James Convey;

    You are so terribly misinformed I am not sure where to begin. Really.

    In fact as I re-read your rant it occurs to me that you are one of those sheep that just doesn’t get it and that the government loves.

    So rather than shotgun blast your entire misinformed piece, I will just focus on health insurance. Nowhere in the Constitution or the amendments, does it guarantee you the right to health insurance. In fact, in a free market economy, you might not even have access. That’s capitalism. But I’ll go one step further. Nowhere in the constitution does it say that you must buy a product for no other reason than you were born. Birth tax. Obamacare. Healthy? Tough. We need your dough to pay for those fat people with type II diabetes. You must buy our product. That isn’t freedom, numbskull. That’s socialism.

    You represent the welfare class that thinks more government is the solution, sucking on the teats of your neighbors. If you don’t like this blog, don’t read it. Better yet, why don’t you try reading that asinine health care bill? I have. A little knowledge would not hurt you.

  • cjm

    Is government really necessary at all?

    Anatomy of the State

  • Dave Wedemeyer

    So many people complain about big government being involved in everything, and everybody says they want smaller government. But as soon as the news reports that kids are dying from eating tainted peanut butter those same people say, “Where were the government inspectors/regulators to make sure this kind of tragedy didn’t happen.” I’m just saying to all of you to ‘pick your poison’, sometimes literally.

  • Todd

    I agree with James M Convey’s comment. Both the US and Canada have the same problem in that too many the jobs have been exported for higher corporate profits. A country is only as strong as what it produces. However, we the consumers are supporting this, buying cheaper products made in another country because we are been squeezed by higher taxes, ect. It’s a vicious cycle.

  • Ang

    I think the point of the post is that it’s hard to get by any more without some kind of economic reliance on the federal government – whether you want it or not. I hear young people talk about fafsa and food stamps and government assistance for housing and all these ways to get by while being “poor” in college, but I don’t think they ever stop and think where the money is coming from and what the real price is to the public and the average tax-paying citizen. If you don’t want Social Security, too bad – you’re paying it. If you don’t want fafsa or food stamps or unemployment or anything like that to catch you when you fall, too bad – you’re paying for it. If you don’t want federal funding involved in your education or the education of your children, you can homeschool or pay your own way through expensive private schools and universities, but you are still paying for state and federal funding of schools. But most people don’t fight it politically or in their personal lives – they don’t even think about it. And eventually you get to a point where the government has become such a part of your life that you don’t even think about where the services and funding and money is coming from because you’ve gotten used to it and you even begin to believe you *deserve* it. And when you stop seeing that line and stop asking the questions, “Where is all this coming from? What is the cost? Is this really ok? Is this really good?” – then you won’t bother asking questions about the bailouts and healthcare and whatever else the government does. Things that make you just that more dependent. Always more dependent.

    • Michael

      You make some really, really good points Ang.

  • Joe Wilson

    Most of the people you speak of that are sitting back waiting on their government check got in the Social Security system because we were more or less forced to. Now that we have attained the age of retirement you seem to think we are the cause of the governments financial demise. Why don’t you pick on the people who have never paid into the system but are screaming for handouts they don’t deserve?

  • Obama = the next Jimmy Carter

    Addendum to unthinking leftists:

    EVERYTHING IS UNDER CONTROL

    GO BACK TO WATCHING TV
    (OR CHANTING “YES WE CAN”)

  • eman

    Farm subsidies …
    … you conveniently forgot the largest of the handouts …

    (as somebody mention in comments earlier)

  • Whoopdy Do

    James Convey closes by saying:

    “…we can’t rely upon the charlatans that got us to the point we are at right now. Bankers and corporate criminals don’t care, and we the people need to help our government to make the changes required. I’d rather put my effort into that ideal as opposed to helping you destroy the one thing we still have some influence over “our government”.”

    Well if he thinks we still have influence over this government he hasn’t been paying attention. But to me, the rest of it sounds like the libertarian principle in a nutshell.

    He just hasn’t cottoned to the fact that the first step to more effective government is to cut the bureaucracy and downsize it drastically, so we can actually afford it, and so it can handle only the problems it’s supposed to. The people can solve 99% of this crap themselves if the government would just stop meddling.

    The problem is, as the article points out, it’s already too late to downsize this government without major social upheaval.

  • MVP

    Hey James – thos ecorporations, run by their greedy CEOs (for sure) are in bed with the same poiliticians that you want to “protect” us (and from both parties…don’t anyone start the whole Democrat/Republican lie – they are all self-serving pr*cks who care naught for you and me.) Both parties support a healthy doese of corporatism (or fascism if you prefer) and they win, we lose. They government screws up EVERYTHING it touches, and eventually this country will come to ruin because of it.

  • Michael L

    Love all the people blaming the corporations. They’re mandated to make a profit by Federal laws. They shipped jobs overseas because people wanted to pay less for the products they purchased. But then turn around and blame the corporations. Talk about the problem in this country, no one takes responsibility anymore.

    They do it so much they don’t even realize it or they truly think they’re “innocent”.

    sharonsj, james m. convey and Janet (ones I most remember but to anyone else blaming companies for doing what they’re told too…) please tell me you would be willing to pay 4-5x more for nearly everything you consume but likely get paid no more per hour then you currently do (if you’re lucky enough to be employed). Life is not fair, not everyone can have a great paying (or even fair wage job) and a house and 2 cars, etc. There are rich people, middle class people and poor people. Just the way things work.

    I’m maybe middle of the middle class but I do not dislike the rich. I have drive (something I see missing in a lot of people, they rather get things easy and handed to them instead of working for it) and ambition and by no means are I saying others don’t. I know a few millionaires (all self made) and pick their brains whenever I can (I do work for them and in a few lucky cases ate lunch with them but by no means am I friends with them).

    People also do no realize that there are other hard working people all over the world (China for example) who would be willing to work for near pennies to produce things to give their families a chance. Where we have minimum wages which limit our abilities to compete with other countries. And no, they will not impose a minimum wage on their people, America didn’t have one for the longest time allowing America to take jobs from Great Britain and the rest of Europe (like Asia/India have taken from the USA).

    Instead of blaming the “evil corporations” for all your (our) worldly problems without first really looking into those problems. Try turning off the TV and putting down the dribble magazines and newspapers that only report what they’re told and read. Read and read some more.

    Never believe manipulated statistics (like the unemployment numbers for a prime example). If they changed how they report something it’s likely to make it look better, but that is not the truth.

    Neither am I saying corporations are by any means innocent. But to think its so cut and dry is small minded and narrow thinking in nature. It’s not about thinking outside the box, it’s figuring out the box does not exist.

    “If bigger government is the answer, it was a truly stupid question” –Unknown

  • Philip

    It is often said that many a true word is spoken in jest. So to all those of you leaving messages on here, of whatever opinion, I would offer a joke that was, apparently, popular in Poland in the days of the cold war.

    What’s the difference between communism and capitalism?

    Communism is the exploitation of man by man. Under capitalism it’s the other way round.

  • honestann

    Wake up humans! Wake up! Stop accepting endless fictions (non-existents) as real. Every human who has grown up to believe in government makes EXACTLY the same mistake, and behaves in EXACTLY the same way as a child who goes crazy about xmas. Since SantaClaus does not exist, all the hysteria and shopping and other activities for 2+ months before xmas are pure, unadulterated, certifiable insanity.

    You’ve all probably seen TV or movies with a classic insane person, trying to capture nonexistent bugs or butterflies or whatever they see around them, while other look on in amuzement or sadness. Well, MOST HUMANS TODAY ARE EXACTLY AS INSANE AS THAT STEREOTYPE. Why?

    Quite simply, “government does not exist”. Period. Stop. End of story. Yet people take government totally seriously, and behave as if the concept “government” has a referent, just as their young kids assume their “SantaClaus” concept has a referent. THEY DO NOT.

    As a matter of fact, and rather ironically you might say (since it indicates folks from long ago were more grounded and realistic, and less terminally insane), the law calls “organizations” (government, corporations, non-profits, and all other kinds of organizations) “fictitious entities”. That’s right, even the most fundamental law admits “government does not exist”.

    So WAKE UP, why don’t you all? The fraudulant con-artist scam run today by the PREDATOR-class depends upon you accepting that absolute, utter FICTIONS exist. They don’t. WAKE UP. It is all a device to convince you to argue with each other about HOW to deal with a fiction. A sane person understands quite clearly… DO NOT.

    To be sure, sane people do understand they may encounter a REAL human being acting on the [purposely] mistaken notion that “government exists”… and these predators can be very, very dangerous to deal with if you become confrontational. But remember, that insane human does exist, but everything he talks about is pure, unadulterated, hallucinogenic insanity. How to act is much like figuring out how to act around one of those stereotypical insane people who happened to get a gun somewhere, and is not shooting at the non-existent bugs/aliens/butterflies/whatever he imagines he sees.

    The best way to deal with these issues is… first become totally clear in your head what is and is not a fiction, then figure out the best way to AVOID, EVADE, HIDE, DUCK, whatever you must to remove yourself from its influences in every possible way.

    DO NOT FEED THE BEAST.
    DO NOT PRETEND FICTION IS REAL.

  • bryan

    What so many do not understand is the gov’t has no money other than the money, it forcfully takes from the PRODUCTIVE people; and then redistributes to the NON-productive people, usually to buy their vote. Like Margarette Thatcher said,”The problem with socialism is that sooner or later you run out of other peoples money”. The problem is we have a fiat money system. Our money does not come from work, and not backed by gold; so our Federal Reserve Note (AKA US dollar) will collapse from this artificial spending and we will all pay on Reckoning Day.

  • http://dieoff.org hungry4food

    http://green-agenda.com/globalrevolution.html

    The Governments of the world are just printing their own operating money while the transform the economies into one world fashion to deal with what they see as a worldwide problem , over population .
    Bill Gates spells it out here , people are the largest contributor of CO-2 , the progressives biggest fear of contributing to climate change .

    http://www.youtube.com/watch?v=-0gvDkVcFkI

    http://www.archive.org/stream/TheFirstGlobalRevolution

  • james m. convey

    @Lunatic, What Comes from the Fringe……

    I do not represent the “welfare state” as you posit and equally you have obviously completely misinterpreted my entire point! I am 44 years in economics and financial and market analysis and am currently the Senior analyst for a multi national (8 countries)company in Europe. The libertarian nonsense represented by the article, which prompted my commentary, has been disavowed by almost the entire fraternity of thinking and working economists on the planet. The last 30 years of trickle down nonsense, and the so called unfettered free market, has led us to this catastrophe of excessive involvement of bigger government, “as a necessity”, due to the lack of proper legal controls, and the unethical behavior of the business and banking dynamic!
    Basically if you want smaller government, then stop this nonsense that purports, that smaller government will somehow result in a more humane society, that will not only prosper, but will look after the basic needs of the unfortunates within that society, without any need for legal or political control. Children will be educated, the sick will get treated, the environment will be protected and all will be well!…….. B.S.!
    Obviously this is untrue, and the current historical facts are that the results are the wealth of the nation is now in control of a tiny minority of “Uber riche” who could frankly care less, which society they pillage to maintain their positions of control over a servile class! Which is what the American dream and the middle class will dissemble into, if we continue your ideology and this libertarian and extreme right inanity. I am by career and by ideology a fiscally conservative centrist. I abhor extremes from either side of the political spectrum, and this article is just another typical quixotic tilt at common sense. I beg all to reject this stupid “ostrich” head in the sand approach to practical reality! Good government is an essential factor in the progress of an effective and constructive American society for the 21st century. Extremism on either side of the ideological argument is something that cannot be tolerated any longer!

  • http://www.thunderdrake.com/blog/ Aury (Thunderdrake)

    Damn… Just… Damn. So much power consolidated. And America used to be a free nation.

    Can you imagine the ramifications if the US Government decides to brutally use that power against it’s people?

    The more I see that dependence and economic hardship, I can’t help but think back to rome. Though I don’t know how similar the downfalls will be, I can only imagine and speculate on the idea.

  • Concerned American

    Its weird how people cant just think about things. People want life to be easy. People forget that to make a good living you got to work for it not just be alive. We are blessed to be in a nation where it was built on these foundations. Its sad to see us turning away from the very principles that made us great. People really just need to look how well off they naturally are and stop asking for people to hand them their life. Go out and get your living!

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