The Coming Demise of Omnipotent (Welfare) Governments
By Ron Chapman
In 1944 Ludwig von Mises published a book entitled Omnipotent Government subtitled ‘The Rise of the Total State and Total War’ The end of that rise should have come 20 years ago with the collapse of the Soviet Union which was, supposedly, the last of the Omnipotent Governments. But of course it didn’t because the US is really the last of such governments and it still persists, though barely.
To understand why that is the case and why the “Omnipotent” US government cannot continue much longer you need to look at the growth of the US government and governmental expenditures over the last 100 years. The figures tell the story.
The US in 1910:
Population 92.2 million
GDP $33.4 Billion
Federal Budget $0.840 Billion
Federal Deficit $0.035 Billion
Funded Debt $2.6 Billion
Unfunded Debt $0.0 Billion - did not exist
The US in 2010 - projected to September 30, 2010:
Population 308.9 million up 235 percent
GDP $14,624 Billion up 43684 percent
Federal Budget $3,721 Billion up 442876 percent
Federal Deficit $1,556 Billion up 4445610 percent
Funded Debt $13,786 Billion up 530130 percent
Unfunded Debt $70-100,000 Billion an infinite progression
Looking at just two of the comparative figures above, population and (annual) federal budgets, note that:
In 1910, the “cost” of government per capita in the US was USD 9.11. In 2010, it is USD12,045.97.
[Figures sourced from: www.usgovernmentspending.com ]
There are three crucial differences in the US governmental scene in 1910 as compared to the US government today. They are:
1. There was no US income tax - the Sixteenth Amendment was passed in February 1913
2. There was no US central bank - the Federal Reserve System (The Fed) was established in December 1913
3. There was no US welfare state - the US government literally couldn’t afford it
These three factors are co-dependant. The Fed enabled Congress to borrow unlimited amounts of debt money without asking the people for it; and that borrowed principal never had to be repaid – all that was required was that the US government and people had to pay compound interest on that debt. As The Fed created money out of thin air the private bankers who owned it were not too concerned about recovering the so-called principal anyway. But because Congress could borrow so easily and with political impunity, borrowings kept rapidly increasing so that the interest on the debt created a great and growing “national debt” owed to the European bankers who owned The Fed. The fact that Congress could ask The Fed for money without limit (except the artificial limit it placed on itself, and exceeded, from time to time) meant that the Congress and US Administrations could "bribe" the electorate with ever-increasing welfare spending without ever having to actually HAVE the money to pay for it. BUT the secret catch was that Congress had to bring in a US Income tax (which was unlawful under the original US Constitution which had been suspended during the Civil War and replaced by Corp US shortly thereafter) in order to pay the interest on the borrowed money, and so the fraudulent 16th amendment was passed by the politicians in 1913. Ever since that time the burden of income and other taxation on US citizens has grown enormously. And the result is the creation of the Omnipotent US Welfare State featuring a bloated and ever-growing federal US government such that today the US is really a socialist (virtually Communist) state (1) with fascist private corporate appendages. (2)
The growth in size of the "omnipotent" US Welfare state has become almost exponential as the fiat debt money creation system operated by The Fed grew ever larger thus requiring ever more borrowings to sustain it, which private individuals and corporations became unable to afford and service. This has led to the absurd trillion dollar US "bailouts" and US government "buyouts" which have further compounded the problem and increased US government ownership of the US economy.
To get a graphic picture of this process notice that in the entire course of US history up until 1980, the government ran up about $US 930 Billion in funded debt. In the decade between 1981 and the fall of the “East Bloc” in 1991, the US ran up another $US 2.4 TRILLION in funded debt. That was a huge acceleration but in the two decades SINCE 1990, and the end of the alleged threat of the USSR, the US government has run up almost another USD 10 TRILLION in funded debt. In the process, the government of the US has become by far the most “omnipotent” on earth.
So much for the “peace dividend” or for claims that the US was protecting the “freedom” of its people and the world.
If the current global collapse of the financial and banking system has any upside the biggest will almost certainly be the elimination of the notion of “omnipotent (welfare) government”. The expansion of Big Government and its power has been an article of “faith” fostered by Jewish bankers for centuries. It is time that the idea was expunged from humanity’s memory banks along with the absurd notions of "Welfarism", fiat money and usury.
(1) The fact that the choice of so-called democratic canditates for election to political office in the US is made by unknown political controllers behind the scenes who also, where deemed necessary, rig the ballot results, evidences that the US electoral system is little different than that previously used in the USSR. In fact the Soviet system was more transparent and "honest" in that the controllers decided the "winner" of the ballot openly by putting forward only one candidate whereas the US system pretends there are a plethora of real candidates when only vetted and approved candidates are allowed to win.
(2) See: http://abundanthope.net/pages/True_US_History_108/Comprehensive_Annual_Financial_Reports_CAFR_by_US__4525.shtml
1 Comprehensive Annual Financial Reports (CAFR) by US governments evidence that at all levels they conceal enormous hidden wealth See: http://abundanthope.net/pages/True_US_History_108/Comprehensive_Annual_Financial_Reports_CAFR_by_US__4525.shtml
2 Walter Burien & US Public Agency Fraud. See:http://abundanthope.net/pages/True_US_History_108/Walter_Burien_amp_US_Public_Agency_Fraud_3605.shtml
3 Private Associations vs. Government and "We The People". See: http://abundanthope.net/pages/Political_Information_43/Private_Associations_vs_Government_and_We_The_Peop_3013.shtml