Poverty: 46.6 million Americans lived in poverty in 2011. By the year 2014, 50 million Americans were living below the poverty line, which is defined by the federal government as an annual income of $23,550 for a family of four. 110 million Americans (one-third of the population) are receiving some form of government assistance.
U.S. Employment: The broad U-6 unemployment figures from the Bureau of Labor Statistics show approximately 12.6% of the workforce as unemployed / marginally attached / short-term discouraged / underemployed. ShadowStats Alternate puts the percentage at 23% (August 2014).
In June 2014, the Bureau of Labor Statistics (BLS) reported that 92,120,000 working-age Americans had dropped out of the labor force.
Millions of unemployed Americans have been dropped from extended unemployment benefits over the past 4 years – and are no longer counted in the government’s unemployment statistics.
“Means-tested welfare” costs: Federal and state spending climbed to $927 billion in 2011. This is projected to average reach the $1.6 trillion level for the year 2022.
U.S. Sovereign Debt: The U.S. annual GAAP-based deficits (Generally Accepted Accounting Principles) include the net present value of unfunded liabilities, such as Social Security and Medicare. Over the past 5 years the GAAP deficits have averaged $5 trillion annually (2008 – $5.1 trillion; 2009 – $4.7 trillion; 2010 – $5.3 trillion; 2011 – $4.6 trillion; 2012 – $6.9 trillion).
“You could tax 100 percent of everyone’s income and 100 percent of corporate profits and the U.S. government would still be showing a federal budget deficit on a GAAP accounting basis,” according to John Williams – economist statistician at ShadowStats.
“The federal government cannot cover such an annual by raising taxes, as there are not enough untaxed wages and salaries or corporate profits to do so.” The GAAP debt is estimated to be $86.6 trillion – which represents 550% of the U.S. GDP. And it represents 150% of world GDP. GAAP analysis represents true accounting – corporations are required to use GAAP in tax filings.
Greece Bailout: The United States paid between 17.09% and 21% of the July, 2011 International Monetary Fund (IMF) disbursement to Greece. This amounted to a minimum $780 million of U.S. taxpayer money being used for a Greece bailout. The money likely was used to pay interest payment on Greek bonds to hedge fund holders.
Egypt aid: The U.S. government is working out a major debt forgiveness package to the nation of Egypt ($1 billion – December 2012). The IMF is also preparing to offer Egypt a $4.8 billion economic assistance loan. The U.S., as a 17% stakeholder in the IMF, will contribute over 17% of the economic assistance in that package (approximately $820 million).
Ukraine aid: The U.S. government has supported a major IMF aid package for Ukraine, and has guaranteed a $1 billion Ukraine bond offering.
Total global derivatives exposure amounts to approximately $693 trillion (Bank of International Settlements Survey of OTC derivatives markets, June 2013). The top 25 holding companies in the U.S. control $304.4 trillion in derivatives contracts (in the form of Interest Rate derivatives, FX, Equity Contracts, Commodity and Credit Default Swaps). Derivatives risk is centered primarily among 5 major banks: JPM with $70.4 trillion, Citi – $63.5 trillion, Bank of America – $55.7 trillion, Goldman Sachs $53.4 trillion, and Morgan Stanley $46.6 trillion (December 31, 2013 – Office of the Currency Comptroller). After receiving trillions of dollars in bailouts, emergency loans, and other forms of liquidity infusions at the height of the financial crisis, the banking world has once again taken on a significant level of counter party default risk. This could set the stage for another potentially severe economic contraction.
There can be no question that with The Leviticus 25 Plan, America will experience healthy, broad-based economic growth from sweeping debt reduction and improved financial stability at the family level, restoring free market principles in commerce, and scaling back social program work disincentives.
The Leviticus 25 Plan does not attempt to project how much additional tax revenue, and reduced cost of government, will be realized above and beyond the Recapture Provisions, over the course of the initial five years of the plan. In that sense, The Plan understates the dynamic economic benefits.
Robust funding of Medical Savings Accounts and the elimination of millions of insurance claims and claims resolutions for basic primary care and everyday healthcare purchases swill save millions of man-hours of health care cost on an annual basis.
Scaling back government involvement in basic primary care and everyday healthcare purchases for millions of Americans will also generate massive cost savings.
The Plan makes no attempt to project the positive effects of the streamlined, consumer-driven efficiencies that will emerge, and the cost reduction and improvement in services. The Plan therefore understates the benefits.
The Plan projects an 80 percent participation rate by U.S. citizens. It is assumed that a large number of wealthy Americans will not participate, because their tax refunds are larger than the annual Plan benefits. And it is assumed that a large number of Americans receiving significant government benefits for extraordinary health or economic issues will also not participate.
Cost savings from the reductions in massive social welfare spending and other programs, like unemployment insurance, workman’s compensation, SSI and SSDI can be difficult to quantity, since state and federal funding mechanisms may both be involved in various ways. In that regard, The Plan may understate, or it may overstate, the benefits.