« | »

Government Dependence Hits Record High

From USA Today:

Americans depend more on federal aid than ever

By Dennis Cauchon, USA TODAY
April 26, 2011

Americans depended more on government assistance in 2010 than at any other time in the nation’s history, a USA TODAY analysis of federal data finds. The trend shows few signs of easing, even though the economic recovery is nearly 2 years old.

A record 18.3% of the nation’s total personal income was a payment from the government for Social Security, Medicare, food stamps, unemployment benefits and other programs in 2010. Wages accounted for the lowest share of income — 51.0% — since the government began keeping track in 1929

From 1980 to 2000, government aid was roughly constant at 12.5%. The sharp increase since then — especially since the start of 2008 — reflects several changes: the expansion of health care and federal programs generally, the aging population and lingering economic problems.

Which is to say, government dependency, which for decades was at 12.5% , shot up to 18.3% in a little more than three years. Which, of course, is precisely what Mr. Obama and the Democrats in Congress wanted all along.

Total benefit payments are holding steady so far this year at a $2.3 trillion annual rate. A drop in unemployment benefits has been offset by rises in retirement and health care programs…

Even so, as we noted last week, this means that benefits being paid out exceed the amount of money coming in as tax revenues, which is only 2.2 trillion.

Americans got an average of $7,427 in benefits each in 2010, up from an inflation-adjusted $4,763 in 2000 and $3,686 in 1990. The federal government pays about 90% of the benefits.

"Benefits" have almost doubled since 1990. And we wonder why the deficit is spiraling completely out of control?

By the way, where are our benefits? Are we not average?

“What’s frightening is the Baby Boomers haven’t really started to retire,” says University of Michigan economist Donald Grimes of the 77 million people born from 1946 through 1964 whose oldest wave turns 65 this year. “That’s when the cost of Medicare will start to explode.”

Meanwhile, the only solution that Mr. Obama and the Democrats offer is to keep on doing what got us here in the first place.

This article was posted by Steve on Tuesday, April 26th, 2011. Comments are currently closed.

One Response to “Government Dependence Hits Record High”

  1. heykev says:

    Looks like Obama’s plan is proceeding according to schedule. Soon we will be a bankrupt 3rd rate nation like Greece and Spain.

    Not sure what to call Baby Boomers – Generation ME, The Worst Generation, Narcissists?

    We have gone from the “Greatest Generation” to one that will bankrupt it. Sacrifice and Shared anything are for someone else. I want mine.


« Front Page | To Top
« | »