Who are the Biggest US Government Welfare Recipients?
(Hint: It’s not who you think)

All the basic data in this essay come straight from the Fed's Flow of Funds report.  And every economist worth his/her salt knows that every conclusion herein is spot-on accurate.  This could be our last chance to solve virtually all our economic issues with but two changes in how new money needs to flow in our economy.  

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The Welfare State is alive and well in the U.S. Those who live there, however, are not the poor and the needy. This little known group of free-loaders are the top 10 percent that comprise our wealthiest--the ultra-wealthy.  The elite. The richest of the rich. They are the recipients of the biggest government hand-outs ever devised. They number 15.5 million inhabitants who collect $13.5 trillion dollars per year without the need to lift a finger.  And it is all tax-free. Their wealth accounts suck up $3.7 billion dollars every day from our efforts (the other 90 percent).  Their wealth accounts now total $135 trillion--and it doubles in value every 10 years.  With wealth of this magnitude, they can buy the loyalty (via favorable legislation) of the right-wing portion of the Republican Party, and virtually the entire Party.  

How?  For example, the Walton siblings (children of Sam Walton, founder of Wal-Mart) collected $23 billion in inheritances in 1993 (all unearned and untaxed), that has grown to $200 billion today (all of it still unearned and untaxed).  

In contrast, Social Security and Medicare recipients pay for their meager checks via the payroll taxes.  The checks are not free.  Both are pay-as-ypu-go programs that do not contribute one cent to our budget deficits.  

If you didn’t know the correct answer to the title question, the rest of this essay is primarily for you. In fact, the top 10 percenters are such a runaway winner of the coveted top government welfare prize that it doesn’t matter who is in a distant second place. Our privileged class rule the roost by owning the Republican Party.  Other names for this state of affairs is a burgeoning Plutocracy, or rule by the wealthy. There are other labels they try to hang onto us, however.  They pettle the Big Lie that Social Security and Medicare are "entitlementts" that are driving the national debt.  Horsefeathers!  To the contrary, Social Security over the years has created a surplus of $2.7 trillion.  But instead of making Social Security solvent in perpetuity with that money, the Treasury has taken those funds and used them to pay for many of programs.  And now--guess what?  The same right-wingers in Congress want to take more from Social Security, to pay down the debt caused by the $135 trillion handed to the ultra-wealthy that gave us the entire national debt.  

Why is all this such a big secret?  It's becaise the ultra-wealthy and their puppets in Congress want it that way.  Both groups want you to believe that the other 140 million workers and the unemployed are the cause of our national debt.  Double Horsefeathers! 

The annual wealth and income inflows to our elites amount to 6.5 percent of our national GDP. It is virtually all unearned and untaxed.  Why the silence?  Because some are Democrats.  They;re the ones to entered Congress broke, but are now millionaires,  

The ultra-wealthy are the eite.  They get their lion's share of the huge giveaways from our wealth pool of stock dividends, bond interest payments, rents, and capital gains on those three sources of wealth—all unearned and untaxed. And here is the third part of their secret gifts that keep on giving: Commercial bankers feed these same wealthy recipients 70 percent of all new money they borrow from the Fed knowing our banks direct it to the same top 10 while making only 30 percent of available to the US economy.

Here is an example of how the transfers take place: Mr. Smith dies at age 80 and leaves his son, Smiley Smith, $100 million dollars. It’s all in stocks, bonds, and real estate certificates. Smiley, age 50, stores all the certificates for safe-keeping in a bank vault. The certificates increase in value by an average of 7.2 percent per year from the 4 sources noted in the preceding paragraph. At that rate, his inheritance doubles in value every 10 years. By the time he is 80, his inheritance has doubled in value 3 times. It is now worth $800 million ($100 million X 10^30 = $800 million). When Smiley dies, he leaves his son the $800 million which compounds to $6.440 billion. Repeat these procedures across 9,911 households with multi-millionaires and there is the $135 trillion of which I write. Most smart 3rd graders can do the math.

So what can we deduce from these numbers? Dictators control the wealth. In a capitalist/plutocratic society, we pretend like those with lots of wealth are deserving of it. And we either pretend like they are smart, or we are too dumb to understand our political/economic systems. We should at least understand how the ultra-rich put corrupt Republicans in legislative bodies and onto our Supreme Court mainly to do their bidding (e.g., pass laws that make them rich and keep them that way). Rule against any attempt to change the laws; they Gerrymander voting districts; pretend to be honest; fill the news sources with lies about how Social Security and Medicare are killing our economy with debt—despite the fact that both programs are self-funding via the payroll tax and add nothing to our national debt. .

Their objective to all this “behind the scenes” maneuvering is to create dynasties of billionaire families that control local, state, and national legislatures completely. In about 50 years, that $135 trillion stack of wealth with be worth another 32.34 times its present value, or $4.366 quadrillion (all unearned and untaxed). Again, give any 3rd grader a $12 dollar calculator, and he/she can easily verify my numbers. ($135 X10^12 X1.072^50) = $4.336 quadrillion dollars.

It follows logically that anyone who is not a part of the top 10 per-cent wealth club—and who votes for their corrupt legislative candidates sworn to keep them poor—is either too naive to be out and about without being heavily sedated, or they love being laughed at by the poor little rich boys.  

The inevitable future 50 years down the road will come in like a tsunami with lord/slave relationships aplenty, where the bottom 90 percent are obedient zombie-like lemmings, who produce food, clean homes, wash vehicles, shine shoes, and kiss a lot of saggy derriers. Or a revolution. Today you have a choice. But only today.  Tomorrow you will be another $37 billion farther from being saved.  

The solution in three parts: 

Part 1.  Credit unions lend 70 percent of their available funds to small businesses and to indivduals.  They also outnubmer commercial banks by 5,000 to 4300.  The Fed needs to direct more new money to credit unions, and less to commercial banks.  Every M1 dollar generates $5 in spending power.  

Part 2.  Exempt $10 million to individuals from inheritance taxes, and make every dollar above that amount taxable.

Enormous changes for the better would begin right away.  In just 10 to 20 years, average incomes would rise to approximately $100,000 each, and nearly all government programs would fade into the past.  

Part 3.  MIT economists have developed 3006 Living Wage scales, one for every county in the US ( LivingWage.mit.edu).  Under the guidance of the Fed, this essay provides the way, the  means, and the rationale for solving most of our economic ills.  

Bonus:  Even our Immigration Problem would solve itself with 11 million new jobs that would be generated with only $550 billion of new GDP.