I Still Call it a False Recovery

CNBC had this article about our illustrious “Welfare State”

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.

Even as the economy has recovered? What economy recovered? Did I miss something? My pay is still cut due to down profits, my neighbors and friends are broke, the states are broke, unemployment is still around 9%, gas prices are spiraling up.. what is this recovery? Where is it? Apparently it doesn’t cross west of the Hudson to Main Street.

So this is the new recovery with over one third of ‘wages’ being doled out as handouts? Somehow, I think using the word recovery in this context is in bad taste. And we’re closing in on our EU counterparts where 44% is the level of government handouts. I believe most EU countries have reached the point where dependence on government can go no further. There has to be a threshold where there isn’t enough private enterprise to support a government.

Handouts Make Up One-Third of U.S. Wages


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