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Welfare handouts make up one-third of U.S. wages

Chad Brady (admin)
Contributor

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.”

Full Story: CNBC’s Fast Money: Welfare State: Handouts Make Up One-Third of U.S. Wages – CNBC

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  • ladylove

    welfare is not wages welfare is a hand out, when a person needs help the most.

    Social Security is money paid into a fund, while a person was working, again not wages.

    medicare, again paid into by wage earners, while they work, and out of social security every month when you get social security payments,

    and had Social Security not been raided to pay for other programs,

    and Medicare been properly monitored for waste right from the beginning,

    both Social Security and Medicare would be solvant today.

    • ladylove

      welfare, also is a haven for those that just want handouts,

  • kris

    If you have worked your entire life and paid into the Social Security system, I hardly think it’s accurate to call those who are eligible for those funds “welfare” recipients. They followed the rules. If you have a problem with that then change the rules. But don’t try to claim that our elderly population is somehow selfish and irresponsible.

    • Sproing

      Your right in your thinking about SS recipients but the fact remains that over 1/3 of the income of Americans is based on government spending. The really damning thing about SS is that their is no money there. It’s all been spent and replaced by IOU’s which the government must now find a way to replace. Since that money was spent to promote yet another layer of government entitlements and fee good programs it won’t be easy to reclaim and put back into the so called “lock box” you’ve been told exists by generations of Democratic legislators. Every time conservative Republicans tried to bring those cruel truths to the front they were royally roasted by the left and portrayed as trying to destroy the retired and old aged.

      So call it whatever you want, the Truth remains that it is on the verge (if it isn’t already there) of being in a negative cash flow position that will only get worse each and every year. That will require either a massive resurgence of American productivity and business expansion or an increase in government fund raising like taxes and fees as well as some sort of re-negotiation of the out of date requirements for receiving SS pension benefits.

      Which do you think will happen?

  • ojfl

    We are back to serfdom. The world population is becoming wards to their States.

  • leilani

    Good Lord, this is scary as hell. Absolutely bone-chilling.

    Every single American has to hear this new figure – especially the kids because they are looking at one hell of a wipeout thanks to their selfish & irresponsible parents and grandparents.

  • tombt

    This is the reason we are doomed as a nation and why Democrats will continue winning elections – well, until they run through other people’s money.

    • mapletree

      They may be close to running out of other people’s money.