Obama Redistribution Victory: Private Pay Shrinks To Historic LowsPosted: May 25, 2010
Private pay has SHRUNK to an all time low. This comes as now SURPRISE, as government aid has INCREASED.
From the USA Today website:”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.”
As private business income goes down and government money aid goes up, this not only produces more people who have to turn to the government, but also does not help with paying the expenses of governing, taxes.
This not only creates a class of people that makes for a new Democratic voting class, but also HURTS a country trying to get back on track economic wise. Also, as we have seen, with the rioting over in Greece, when benefits are cut away in full, it should be a teaching moment for the USA in that when people are riding the carriage and not pull the carriage.It will in the end make all the more possible reality that when those same government benefits are cut, crisis becomes a reality in the USA just like what has been seen for the last several months over in Greece.
Also from the same USA Today website: “Key shifts in income this year:
• Private wages. A record-low 41.9% of the nation’s personal income came from private wages and salaries in the first quarter, down from 44.6% when the recession began in December 2007.
•Government benefits. Individuals got 17.9% of their income from government programs in the first quarter, up from 14.2% when the recession started. Programs for the elderly, the poor and the unemployed all grew in cost and importance. An additional 9.8% of personal income were paid as wages to government employees.”
This shows why the 2010 mid-term elections and the one in 2012 is of importance, with the growth and spread of the tea party movement, added with the anti-incumbent and anti-liberal anything mood around the country right now. All of this could produce a very interesting “mix” this November.
Read More Here:\"Private Income SHRINKS\"</