A First in American History: 2011 Federal Aid Set to Overwhelm State General Funds
Louisiana second most dependent in nation, 50 percent of state spending from federal aid
NEW ORLEANS, La. - New research indicates 2011 will be the first year that federal aid becomes the largest component of state revenues. Already 27 states, including Louisiana, rely on federal aid as their primary source of funding, but the report’s author describes this year’s level as a critical breaking point.
“It sends a profound message,” says Sven Larson, a research fellow with the Wyoming Liberty Group. “There is a growing consensus among the states that dependency on the federal government is tolerable, even desirable.”
While state revenues have declined during the Great Recession, debt-financed federal aid has risen. Nationwide it now stands at more than one third of total state revenues, with greater state conformity over the level of federal aid dependence.
In 2010, Oklahoma and Louisiana were the most dependent, with federal aid comprising 50 percent or more of their revenue. Ten other states were more than 40 percent dependent, compared to only one state in 2005 – Louisiana at 45 percent. (Click here for a ranking of state financial dependency.)
Total State Revenue Sources*
Larson, author of Remaking America: Welcome to the Dark Side of the Wefare State and an immigrant from Sweden, says the federal funding trend is part of a broader decline of federalism toward a European-style unitary United States. And he believes the nation is at a critical threshold in that direction.
“Evidence from Sweden primarily, but also from other European welfare states, indicates that once government passes 40 percent of GDP [precisely where the United States hovers] the productive sector can no longer keep up with the tax obligations that government puts on it.” (Click here for Larson’s full explanation.)
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March 31st, 2011 at 12:32 pm
As the Rothschild House of Europe might say, the easiest and best way to take and keep power is to control a nation’s money supply.
The people who pay the bills ultimately will determine how it is spent. (But you don’t want to do it too quickly or you might scare the recipient States.) I can think of no better way to take over what’s left of State sovereignty. As the famous quote goes: “Never let a crisis [especially an economic and/or financial crisis] go to waste.” Our government is in high gear generating crises: inflation, war, unemployment, illegal immigration, etc.
As inflation is getting ready to take off, thanks to our leader at the Federal Reserve, Benjamin Bernanke, is there a German World War I army corporal waiting in the wings? The worse that it gets the more the American people will want a “savior.”
Franklin D. Roosevelt:
“In politics, nothing happens by accident. If it happens, you can bet it was planned that way.”
When you look at federal spending – the current year’s operating deficit of 1.25 to 2 trillion dollars, and the money that our “UNELECTED” leaders at the Federal Reserve are printing (creating with a few strokes of a computer key) you have to ask yourself if our leaders really don’t know exactly what they are doing.
What’s left of the American middle class’s equity is about to get wiped out when inflation takes off and government control of “all” other assets is put into place. Does anyone really believe that the federal government is going to allow the ownership of “any” assets that threaten its power to control the money supply and the American people?
Think of the feudal systems of Europe, Russia, Asia, etc.: The masses were controlled and governed by an oligarchy with a figurehead King. I believe that former President George Bush and President Barack Obama were and are nothing more than figurehead Kings. President Obama is at his best with a scripted speech in front of T.V. cameras with an American flag on his lapel and with a background of massive American flags. The American flag is probably used to sell more products, agendas, and organizations than all of the advertising symbols used by Madison Avenue.
To freedom and liberty,
To Americans who vote for Constitutionalists only, those who uphold the entire Constitution after assuming office,
April 4th, 2011 at 1:30 pm
The parasites are about to kill their host.
April 4th, 2011 at 7:01 pm
All engineered by design. If people would actually READ, they would find that the blueprint was this was made many years ago and is publically documented in the very policies our government enforce.
Sheeple.
April 6th, 2011 at 9:27 am
Regarding post no. 2:
I believe that the Greek historian, Plutarch, got it right with the following quote, even though he got a lot of his life wrong:
“An imbalance between rich and poor is the oldest and most fatal ailment of all republics.”
The problem is that those on top – the rich and the wealthy, (as well an the poor and the middle class), don’t see that their future lies with a Constitutional Republic. They don’t see that when the masses quit supporting it and become completely disenfranchised that it is gone.
To our country, America,