Median Household Income Now Less Than What Government Spends Per Household
April 12, 2013 by Ben Bullard
If you add up all the money the government is spending, using information supplied by the U.S. Census Bureau and the Office of Management and Budget (OMB), and divide that amount by the number of households in the United States, you get a figure that now exceeds the median amount of money those households collectively earn.
In a new book called Completely Predictable, author Terence Jeffrey points out that, since 2010, the government has begun spending more money than it can even raise as revenue by taxing households at 100 percent.
That year, net spending at all levels of government — including Federal, State and municipal — amounted to $5.94 trillion. Divided across the 118,682,000 households in the United States, that comes to $50,074 per household. The median household income that year was $49,445: a $629 difference.
By contrast, in 2000, the government was spending $29,941 per household at a time when the median household income was $41,990.
Thus, between 2000 and 2010, government in this country went from spending $12,049 less than the median household income to spending $629 more.
…I think the number demonstrates how completely predictable the fiscal crisis our country faces has become.
A nation whose government spends per family more than the typical family earns is on the road to ruin.
How in the world is something like that possible? Because taxation’s not where the money is. Fabricating money in a debt-based economy is the way we do things in America. The government prints money and creates debt as it endlessly expands the money supply, all under the para-governmental aegis of the bankers who control the Federal Reverse.
Although, at the Federal level, President Barack Obama has rightly been criticized for promoting a monetary policy that takes government spending into the stratosphere; the trend is nothing new. But Obama’s embracing of entitlement spending, as well as his burgeoning enthusiasm for the kind of economic “stimulus” policies his predecessor, George W. Bush, was lambasted for using as a stop-gap bailout measure, constitute the most egregious commitment to the government debt bubble of any President in the Nation’s history, as this chart of “real” inflation-adjusted per-capita (not per-household) spending shows:
“Two things stand out,” the accompanying article notes. “George W. Bush was god-awful. And Barack Obama looks to be even worse.”