Margaret Thatcher saved Great Britain that was in insolvency due to 90% taxation levels when she became Prime Minister May 4, 1979. And revitalized their economy and free enterprise by decolonizing the Monarchy. What does that mean. She let the people in the colonies have their freedom. Taxation was supporting them with revenue sharing and when they got their independence Great Britain was solvent and avoided bankruptcy.
How can the Great American Enterprise learn a lesson from the savior Margaret Thatcher? Reagonomics, trickle down won't work fast enough, trickle up is already here with Biidenomics. Since America effectively, has 50 colonies, 3,140 counites, 300 major cities, 35,000 towns, 16,524 townships now, not 13 colonies as in 1776 when USA got its independence from England. Why is this relevant to today's topic.
Our 50 States, Cities, Counties, townships, towns are feasting off the Federal government with Federal Taxes (gone by March each year, then borrowing the difference) for revenue sharing and 46 of their own taxiing bodies. The largest property and sales taxes with income taxes last That sharing formula is State driven according to population and only contingent on the State complying with Federal regulations for certain 17 major agencies, Energy, transportation, health care, agriculture, Urban Affairs, commerce, VA, Intelligence, Defense, Joint Chiefs, Air Force, Army, NASA, Space State force, Interior, Navy, Justice, Homeland Security, Social Security and Treasury. 27 a mid-sized agencies, 30 small agencies and 432 sub components.
Total 506 totaling Federal agencies (17 redundantly in each State) with 24 million government employees, including the 50 State, County, City, Township, town based subagencies. The fixed overhead of this mammoth bureaucracy is $1.9 trillion per year payroll, pulse including the best health care, special social security and pension plans. Average salary is twice the average private sector salary. Average in Federal government exceeds $100,00 per year plus $100,000 in long term benefit cost per employee due to continuing health care, social security and pensions. None of which have been funded out of current GDP. Total of $9 trillion cost of Government per year including all government entities. Income Tax revenue is $6 trillion per year.
Another $3 trillion per year borrowed money per year. $34 trillion current liabilities, adding $250 billion per week. And $200 trillion per the www.usdebtclock.org obligations are unrecorded. Thus, government is wasting taxes and hiding debt and deferring reality until after elections.
Wow. Is are the unrecorded obligation on the books as accruals. Putting aside a current portion of profits for future payments. No there is no GAAP set of books, only budgetary accounting that records borrowing in as cash received to balance the budgets. You mean GAAP? Yes if the books, so to speak if we had them would show America as insolvent on the verge of not paying its bills if OPEC de-dollarizes trade, that means USA, Inc. is Bankrupt. For view of the impact of GAAP go to the www.usdebtclock.org. for the current debt and unrecorded obligations. It is supported by the US Chamber of Commerce and the US Budget Office.
What can be done to avoid bankruptcy of the Federal Government that ripples to the rest of the colonies. Do like the problem solvers do, like Margaret Thatcher did: Give the 50 colonies and 500 agencies their freedom, fair thee well, on their own for covering cost, revenue and bottom line. Downsize Government upsize enterprise. Then 50State governors, legislatures are responsible for lowering fix cost of unneeded laws, regulators and regulations.
Focusing on trade GDP, cash flow funded by trade war bonds. Then the governors are responsible, using analytics, for performance for solving financial and societal problems in counties, cities, towns, and townships. Then annually select the best performers for Super Bowls recognition.
