ANOTHER OBAMA RECORD… Social Welfare Benefits Now Make Up 35% of US Wages & Salaries
Posted by Jim Hoft on Tuesday, March 8, 2011, 8:05 PM
Another Obama Record!
Government handouts now make up 35% of American wages and salaries.
CNBC reported:
Government payouts—including Social Security, Medicare and unemployment insurance—make up more than a third of total wages and salaries of the U.S. population, a record figure that will only increase if action isn’t taken before the majority of Baby Boomers enter retirement.
Even as the economy has recovered, social welfare benefits make up 35 percent of wages and salaries this year, up from 21 percent in 2000 and 10 percent in 1960, according to TrimTabs Investment Research using Bureau of Economic Analysis data.
“The U.S. economy has become alarmingly dependent on government stimulus,” said Madeline Schnapp, director of Macroeconomic Research at TrimTabs, in a note to clients. “Consumption supported by wages and salaries is a much stronger foundation for economic growth than consumption based on social welfare benefits.”
The economist gives the country two stark choices. In order to get welfare back to its pre-recession ratio of 26 percent of pay, “either wages and salaries would have to increase $2.3 trillion, or 35 percent, to $8.8 trillion, or social welfare benefits would have to decline $500 billion, or 23 percent, to $1.7 trillion,” she said.
Last month, the Republican-led House of Representatives passed a $61 billion federal spending cut, but Senate Democratic leaders and the White House made it clear that had no chance of becoming law.
ADVERTISEMENT
-
Featured Story:
Obama Campaign National Co-Chair Admits Giving Students Credit For Volunteering to Elect Democrats
Published February 22, 2012 at 4:19 pm - 32 Comments
dwd commented:
UNPRECECENTED
dwd commented:
hahaha unpreceDented!
LibertyAtStake commented:
Holy s**t! My wife told me not 2 hours ago “one third” of wages were handouts. I did not believe her. (Who would?) Now I read 35% from a solid source? Duck and cover, folks!
d(^_^)b
http://libertyatstake.blogspot.com/
“Because the Only Good Progressive is a Failed Progressive”
coolidgerules commented:
We are reaching a point that something is going to happen soon. The Fred Rodgers Media cannot keep putting a lid on this whole disaster as it is unfolding:
-35% of wages as gov’t handouts
-rogue FCC
-ignoring federal rulings on OCare, Drilling Ban
-union coordination coming from the WH
-rogue AG that will not abide by the Constitution
-foreign influence of the WH and various other agencies
Just a small list. Add to it as you wish. This is all going to come to a head and soon.
ADVERTISEMENT
drjohn commented:
This is not a mistake. It is by intention. It’s the ultimate wealth redistribution.
Opus#6@AmericanPerspective commented:
It’s Obama’s transformational moment.
Opus#6@AmericanPerspective commented:
Where he transforms the U.S. into a 3rd world country by ruining the private sector economy.
M. Miller commented:
“Consumption supported by wages and salaries is a much stronger foundation for economic growth than consumption based on social welfare benefits.”
What is she talking about?! Nancy Pelosi said it’s the other way around – unemployement benefits are the best things the economy’s got going for it.
I know… let’s give every PEU member a 50% raise to get the welfare-to-wages ratio back to 26%. That’s the ticket.
Ginger commented:
He has to give all those muslims that he is slipping here a place to live, food, clothing, bombs, etc, to sick them on us! A lot of the illegal muslims and mexicans are getting their share of the unemployment benefits and I bet they did not even pay into it. Even prison inmates are getting a tax refund and earns no income.
IT IS CALLED……BUYING VOTES!
tommy mc donnell commented:
soon their won’t be enough people working to support the people who don’t work. that has always been the lefts goal. when everything collapses then they will step in and take over control. they hope.
Madkangaroo commented:
The Dems seem to think “If we all become unemployed, unionized government “workers” we’ll have the most prosperous economy in the universe!” But seriously, getting a majority hooked on handouts is part of the plan to re-establish feudalism; they, the “progressive” elite, will be the nobles, and we’ll be serfs subsisting on the scraps they deign to toss from their table.
Rock commented:
Well how else was he going to improve the job market? All he knows is giving our money away. Expertise in our previous source of job creation is most assuredly not his strong suit. Hell his style of leadership is let the other guys carry the load, just ask the Dems who are complaining about his leadership. He only took the job for the perks, and be one of Soros gophers.
xngbv8ukcfbgft commented:
I’ve seen this report and I am surprised it is getting so much attention. I went to the linked article and frankly I don’t understand it. How are medicare benefits a wage or salary? Something here is not very clear and needs to be explained. Why is this being repeated when at the face of it it doesn’t make sense. I’m not saying it’s wrong just that it is not clear and I don’t understand how people can repeat this story, posting it on their blogs, without clarification, when it doesn’t make sense.
Granny commented:
And that does NOT include the salaries of the huge bureaucracy required to process all those claims and payments! I suspect the true figure is actually up over 40% if you include those individuals.
#13 – of the unspellable name. Your confusion arises from the terms used by the original story. People on Welfare or disability or Social Security generally have no other income, so this is income in lieu of wages.
once2happy2sin commented:
The Communists have made a lot of progress haven’t they? I know New York state certainly has helped the cause. The taxes are so high here that I need to get a second job to pay them! I’m NOT KIDDING.
Andreas K. commented:
Nice.
Obama has really learned a lot from the glorious EUSSR.
In Germany the welfare state these days costs roughly 50% of the annual budget. It was 30% in 2001. And there’s no end in sight. But Germany (and Austria, we have a similar system) needs it because uh… everybody is so poor so the government has to give people more money. Where does the money come from? From the people, of course, the “evil rich”. People like my uncle, who was a salesman (but his company went under, and now he can’t find a job anymore, because who takes an almost 60 year old guy), and still paid more than 30% of his monthly salary to the government. Or my father, who was a police officer for 40 years and who worked solely for the finance ministry 5 months per year. Or a neighbor of mine, who’s a doctor, who pays 50% taxes on her salary. And the printing press. And from more debt.
THe German government in 2010 was 320 billion Euros. 150 billion were for the welfare state. 80 billion were new, additional debt added to the 6.2 trillion Euros national debt that Germany already has.
Well done Mr President. You have to be the biggest moron on this planet.
Andreas K. commented:
The German governmet? The German BUDGET. Jeez!
squeaky commented:
over time all kinds of benefits were added by the touchy feely crowd to benefits paid to the social benefit crowd to make them feel better about themselves. the “not fair” mentality that took a welfare program that was never meant to be a way of life – only meant to transition people to self sufficency – to a way of life. a lifestyle that people kept to themselves yesterday but brag about today. and there are those who consider their benefit check to be a pay check and this isn’t just recently.
greg commented:
Well folks….having paid 300 thousand into social security and 100 thousand into medicare over my 40 year career,,,,,I just do not feel that payouts from those two operations are welfare, any more than drawing down my 401 k. I would venture to say that every other retiree that paid into the the system their entire worklife (private industry workers not teachers, politicians, railroad workers etc) feels the same way. SS is a government mandated savings program not an entitlement. It may be managed as well as Bernie Madoff’s scam but it is not free.
aprilnovember811 commented:
After draining our money, he wants to drain the oil in the strategic oil reserves.
aprilnovember811 commented:
He doesn’t build anything, he tears them down.
dr john galt commented:
Obama has proven himself to be a good follower, not a good leader. Perhaps we should focus more attention on the “who, what and why” of what it is that he follows.
According to Forbes, there are now a total of 1,210 billionaires in the world with a combined wealth of $4.5 trillion, so even they are incapable of reducing just the debt of the U.S. to a reasonable amount. Sadly, too few are capable of recognizing the fact that times are only going to “progressively” become worse if drastic measures are not taken immediately. Or is it the agenda to achieve total collapse as a means of acquiring “total” control and power over the people?