“USA is in for a prolonged period of sub par growth and very high annual deficits.” – Bruce Krasting

 

From Bruce Krasting

“I was blown out by the Labor Force Participation Rate (LFPR) data released Friday. Down 4 tics to 62.8%.”

“A low LFPR [ Labor Force Participation Rate ] means that there are less workers earning taxable income. That translates into less government revenue. Payroll taxes (Social Security and Medicare) total 15% of wages. For an average worker making $40,000 a year that comes to $6,000. When the LFPR drops by 0.1% it means that there will be 180,000 less workers filling the tax bucket. The .1% drop translates into $1Bn less in tax revenue. The .4% drop in October therefore means $4Bn in lost revenue. It adds up quick.”

“The 64.4% assumption the CBO used versus the 62.8% that exists today translates into 4m less workers contributing to the system, and those 4m workers (and their employers) will not pay $25B in payroll taxes. A 1/4 trillion adjustment over ten-years just due to a revision of the LFPR. That’s real money.”

“The drop is accelerating. What are the odds that the long-term trend towards lower participation is going to turn around soon? I would say, “Not high”.”

FULL ARTICLE

Also please consider:

The Coming Darkness

Government’s Giant Ponzi Scheme – You’re the Sucker

“Fear For What’s Coming” – 68 Percent Of Americans Believe The Country Is On The Wrong Track

A Code Red World

How Will You Pay Your Fair Share?

Obama’s Other Face On Debt

Grand Theft Obama: Biggest Heist in History

I Am Now a Dissident (and You Should Be, Too!)

The Threat We Face

What Will It Take?

9/12 – the Manhattan attack that gave us Obama

Government’s Unconstitutional Grants of Nobility

The Obama Agenda and the New Global Elite

Our Imperial President’s Disregard of the Law

Recap of O’s Liars, Lies and Damn Lies

America Waking Up to Scandalous, Lying O’ministration

Is This Country Different? Will the Big Bang Be a Shock?

Government Never Has, and Never Will, Create Progress

A Message from Lord Vader

Is Government Lying About Inflation? Yes!

Wake Up, Gulliver: The Lilliputians Are Almost Done

Don’t Cry For Me, America: Comparing Argentina’s Fascist Perón to Obama

America Waking Up to Scandalous, Lying O’ministration

What You Should Know About the Debt Ceiling

Is Government Lying About Inflation? Yes!

The Road to Oligarchy

The Corruption of America

Median Household Income Has Fallen For FIVE YEARS IN A ROW

Obumanomics: Impact of ObamaCare on Women and Families

Obama’s War on Coal & Your Standard of Living

The Need for a New Economics

Obama’s 1st Term: Real Median Income Down $2,627; People in Poverty Up 6,667,000; Record 46,496,000 Now Poor

Half of Americans Think Worse Economy Still Coming – Majority Still Want Spending Cuts

Has Obama Already Bankrupted America?

No Economic Growth Except from Higher Deficits

Blue State Blues – ILL Food Stamp Enrollment 4 x Job Growth

Full Time Employment Down 5 Million – No Full Time Job Growth in Obama “Recovery” Except Govt

Help Make A Difference By Sharing These Articles On Facebook, Twitter And Elsewhere:

• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
•