Redistributor in Chief… Private Pay Shrinks to Historic Lows – Government Handouts Soar
In a 2001 interview Barack Obama said he wanted to radically reinterpret the Constitution to redistribute America’s wealth.
It looks like his plan is working.
Private sector pay shrank to its smallest share of personal income in U.S. history during the first quarter of this year. Meanwhile, government handouts soared.
USA Today reported:
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.