The Conservative Cave

Current Events => Economics => Topic started by: thundley4 on May 25, 2010, 04:00:02 PM

Title: Private pay shrinks to historic lows as gov't payouts rise
Post by: thundley4 on May 25, 2010, 04:00:02 PM

Quote

Paychecks from private business shrank to their smallest share of personal income in U.S. history during the first quarter of this year, a USA TODAY analysis of government data finds.
At the same time, government-provided benefits — from Social Security, unemployment insurance, food stamps and other programs — rose to a record high during the first three months of 2010.

Those records reflect a long-term trend accelerated by the recession and the federal stimulus program to counteract the downturn. The result is a major shift in the source of personal income from private wages to government programs.

The trend is not sustainable, says University of Michigan economist Donald Grimes. Reason: The federal government depends on private wages to generate income taxes to pay for its ever-more-expensive programs. Government-generated income is taxed at lower rates or not at all, he says. "This is really important," Grimes says.

USA Today (http://www.usatoday.com/money/economy/income/2010-05-24-income-shifts-from-private-sector_N.htm)

Socialism only lasts until you run out of other people's money.

Title: Re: Private pay shrinks to historic lows as gov't payouts rise
Post by: JohnnyReb on May 26, 2010, 04:17:53 PM

Quote from: thundley4 on May 25, 2010, 04:00:02 PM

USA Today (http://www.usatoday.com/money/economy/income/2010-05-24-income-shifts-from-private-sector_N.htm)

Socialism only lasts until you run out of other people's money.

or ink.....and both are getting in rather short supply.