Is this the “Hope & Change” that America is really looking for?
As reported at CNBC, government social welfare benefits make up 35% of wages and salaries this year. That is up from 21% in 2000 and 10% in 1960. To make matters worse, many Americans appear to have become dependent on government spending and are not willing to take cuts in their welfare, medicare or social security benefits. Be very careful America of ever becoming dependent on any governemnt, no matter what party is in power.
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.
“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.”
Sadly, we have gone from the welfare state, to the welfare nation.