Wanna read something that will make your head explode?
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.”
More than 1/3 of all US salaries and wages? For entitlement spending? There’s a reason they’re called “entitlements” folks… Because the people raking them in feel like your money belongs to them as much as it does to you. And now they have a federal government that agrees with them.
On balance here, I sincerely doubt that this figure is all that surprising to anyone who’s taken a look at their check stub in recent years or months. All have undoubtedly seen that the money’s going somewhere; and its not your 401k or something cool like a ski boat payment.
Here’s the worst part. If there can really be a “worst part” to any of this.
$514 billion in just two years… What else happened in the last two years? Oh right. We elected that guy.
To make the matter worse. This is also the first year that “baby boomers” will be added to the roles and guess what? They’re bringing nearly 80 million friends with them in the next few years as well. The short and dumb of it is this. Expect that 1/3 to look more like 1/2 before you know it. European welfare state here we come.
The 35% figure is up from 21 percent in 2000 (that’s alarming) and 10 percent in 1960 (that’s downright criminal). The current rate is 25% more than it was just 50 years ago. That’s not inflation. That’s not an “aging society.” That’s not a reaction to a deep recession. That’s theft folks. Its criminal. Plain and simple.
Here’s a great read that I think is rather fitting as a follow-up. Enjoy.
From Pundit and Pundette:
H/T Chip Bok for the cartoon