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Saxo Bank CEO Lars Seier Chirstensen on the growth of government entitlements and its impact on taxpayers and America’s future.
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Last night's presidential debate Mitt Romney put forward a stark choice for America.
Elect him and he'll get America back on track re elect Barack Obama and -- on the road to Greece.
With dependents on the government now at an all time high the issue of massive government spending.
Paid for by massive government borrowing is one of the defining issues in the campaign.
Joining me now largest air Christians and the CEO facts so bank -- Danish investment bank are welcome to the show it's great to have you here could.
-- man is a thing or two about entitlement cultures let's start with food stamps which is a very good program in this country now fifteen and -- percent of Americans are on food stamps.
And we just got news this week that even more are depended on it today 47 million Americans on food stamps compared to 32 million in January of 09.
We make of this.
-- it's not surprising because and they showed good entitlement programs is that they they grow and grow -- so many dynamics pulling in that direction you know.
People that want of course entitlement that people making money from.
Administering entitlements that people benefiting from from simply creating more people dependent on the state them and not least the massive really dangerous problem.
They're socialists would like to to get mobile -- that -- Well you know that you say -- in this country -- -- denies that there any socialist but of course there are.
You make an interesting point that there are sort of vested interest in keeping the programs.
And one of the things that amaze me is that the federal government advertises they pay money to advertise food stamps.
Which mystified me -- -- -- -- already know about the white you have to tell people about food stamps.
When you know that's the nature of of government is like care -- -- kid an illustration of likes to grow most of the time the not necessarily that.
Politicians at the top of -- -- -- station itself.
So you have -- an interest you have people that live from from administering these programs you have.
Lots of people having an interest in the government getting big and we see it and to a much because between the country like mine demo -- Well you know more than 65% of the voting published in this on some kind of public.
Payment there.
Unbelievable well let's take a look at that it.
Facts here that I I that shocked me -- you said your from Denmark.
But for the tax revenue as a percent of GDP Denmark 49% as tax revenue as a percent of GDP France 44 Germany forty.
The US looks like we're on the road.
To becoming like these other countries -- we'll.
I mean if you don't if you're not careful we will be and you have to also think that once things that -- -- tax personal things what -- you -- -- -- deficit right so in effect the deficit is just stood.
-- precious gonna come late two wrongs of -- probably higher up that list already right with a with a current deficits.
So.
But you should also think the 49%.
-- -- -- but but think about which you -- -- -- up on middle costs citizen and you -- -- -- 80% of his his.
All of his incumbent in Texas and -- -- not just income tax but.
How much.
-- ripped through -- that I would estimate 80% because you have to think income tax 60% -- -- -- 42%.
Sales tax minimum 25% 80% context 200% -- all of the stuff that's up.
Gallon of gasoline ten you only have 20% of what you are left over -- would be money estimate for a middle class citizen and a much I don't.
Well I mean so much country a couple of.
I -- she get money printing press for McGovern I think you are right but when -- had it all updated grocery across I don't know.
Well I guess you're here to warn us were on the red degrees we better change -- ways.
I'm I'm -- to point out onto -- speaking to at the moment about European socialism that you point out what it actually implies some of the stuff but just mentioned -- what what's also -- said acidity of the implies.
Building these entitlement programs and actually.
Creating -- people that could otherwise have had.
Productive -- -- six -- get convinced by the government probably just the money.
The problem is what happens to people who live under these -- are absolutely apparently have been -- we're gonna have to leave it there I apologize for cutting you lot.
Thanks for being with us today it's a fascinating story.
One that we've been covering a lot lately thank you so -- is.
