Tuesday, April 26, 2011

Change! More Americans Dependent on Federal Welfare Payments Than Ever Before

Federal social welfare benefits now make up a record share of the nation's personal income. At USA Today, "Americans depend more on federal aid than ever":

Social Security

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.

The income data show how fragile and government-dependent the recovery is after a recession that officially ended in June 2009.

The wage decline has continued this year. Wages slipped to another historic low of 50.5% of personal income in February. Another government effort — the Social Security payroll tax cut — has lifted income in 2011. The temporary tax cut puts more money in workers' pockets and counts as an income boost, even when wages stay the same.
More at the link.

Earned income is still 51 percent of total income, so the progressives haven't won the battle over personal industry quite yet.

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