Posted on | July 10, 2011
Americans Aren’t Feeling So Optimistic These Days
U.S. voters continue to be largely pessimistic about the country’s future. We need to be able to think about a bigger and brighter future, but we’re not feeling that way. The latest Rasmussen Reports national telephone survey of likely voters shows that 46% of those surveyed think America’s best days are in the past.
37% say they believe that America’s best days are still ahead. And 16% say they’re not sure.
Optimism about the nation’s future has generally been in the mid to high 3os for most of the Obama presidency. With a number of economic indicators hitting new lows in recent days, it’s not surprising that voters continue to favor a government with less services and lower taxes.
65% say they’d favor a smaller government over one with more services and higher taxes.
David Walker, the former comptroller for the General Accountability Office, recently resigned because he was not allowed to tell the American public the truth about the escalating national debt. In 2007 it was at $9 trillion and he said we had nearly $63 trillion in unfunded liabilities including Medicare and Social Security that we don’t have money in our coffers to pay.
In October 2009 our government was operating totally in the red for nearly a year and three months until January of 2011 when Senate Majority Leader Harry Reid announced that the government was finally solvent enough to cover what it was paying out in benefits again.
Both parties say we need to cut at least $4 trillion over the next 10 years, but David Walker says that more will be required to keep the government solvent.
He says we can’t do that without both spending cuts and tax increases. Walker says first we’ll need to make several billion dollars in cuts immediately in discretionary spending. Next he says we’ll need to cut $100 billion in the 2012-2013 budget.
The third and final part of his debt remedy deal is to institute budget controls with pay-as-you-go requirements, annual spending caps and specific debt to GDP targets. If the targets aren’t hit by late 2013, buzzers would sound, lights would flash and the deal would trigger automatic draconian spending cuts and higher taxes.
Every tax payer in this country should be paying very close attention. An economic reality check is getting closer.
What To Expect In the Next Decade
Dave Ramsey recently pointed out that Americans now have more in their 401(k) than they did in October of 2007 when everything fell apart. There are actually two reasons for that.
Number one, people have added money to their 401(k) over the past 4 years. Secondly, if they didn’t add money and their 401(k) was linked to the S&P 500 Index, for instance, over the past 10 years you’ve barely made 2.99% by the end of first quarter 2011.
Contrast that with people who’ve followed the Missed Fortune strategies during this last ten years experienced predictable, safe tax-free growth of 7.23% growth and have doubled their money from where they started.
Market uncertainty will be a part of the next decade as well. Wall Street has lost more than 45% of the typical investor’s money twice in the last decade. The typical equity mutual fund investor has only averaged a 3.83% return for the past 8 years.
There is a much better way to put your serious money to work.
With a Missed Fortune strategy like Indexing, you don’t lose a dime when the market goes down and you start earning again the second the market goes up. With a Missed Fortune strategy like linking your returns to those things that inflate, inflation helps you rather than hurts you.
And with the Missed Fortune strategy of accumulating your money in a tax free vehicle, you avoid the higher taxes that are surely on the way.