Thread: Welfare State: Handouts Make Up One-Third of U.S. Wages

Originally Posted by Disillusioned_1

Yes it hurt the middle class as well, although I suspect they were most hurt by the banks failing.

The rich ultimately had other assets which meant they still did ok even after the crash and bank failures.

The rich owned the banks. Big difference there!

The "hand-outs" could be cheaper then the bullets and barbed wire it'd cost to deal with the folks with no wage to be made else-wise.

Originally Posted by CSA

I cannot believe that Handouts Make Up One-Third of U.S. Wages - WOW holy cow...

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,” (THE DEMOCRAT WAY SORTA LIKE A DRUG DEALER GET THEM HOOKED THEN HIT EM HARD)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.”

The economist gives the country two stark choices. In order to get welfare back to its pre-recession ratio of 26 percent of pay, “either wages and salaries would have to increase $2.3 trillion, or 35 percent, to $8.8 trillion, or social welfare benefits would have to decline $500 billion, or 23 percent, to $1.7 trillion,” she said.

Last month, the Republican-led House of Representatives passed a $61 billion federal spending cut, but Senate Democratic leaders and the White House made it clear that had no chance of becoming law. Short-term resolutions passed have averted a government shutdown that could have occurred this month, as Vice President Biden leads negotiations with Republican leaders on some sort of long-term compromise.

“You’ve got to cut back government spending and the Republicans will run on this platform leading up to next year’s election,” said Joe Terranova, Chief Market Strategist for Virtus Investment Partners and a “Fast Money” trader.

Terranova noted some sort of opt out for social security or even raising the retirement age.

But the country may not be ready for these tough choices, even though economists like Schnapp say something will have to be done to avoid a significant economic crisis.

A Wall Street Journal/NBC News poll released last week showed that less than a quarter of Americans supported making cuts to Social Security or Medicare in order to reign in the mounting budget deficit.

Those poll numbers may be skewed by a demographic shift the likes of which the nation has never seen. Only this year has the first round of baby boomers begun collecting Medicare benefits—and here comes 78 million more.

Social welfare benefits have increased by $514 billion over the last two years, according to TrimTabs figures, in part because of measures implemented to fight the financial crisis. Government spending normally takes on a larger part of the spending pie during economic calamities but how can the country change this make-up with the root of the crisis (housing) still on shaky ground, benchmark interest rates already cut to zero, and a demographic shift that calls for an increase in subsidies?

At the very least, we can take solace in the fact that we’re not quite at the state welfare levels of Europe. In the U.K., social welfare benefits make up 44 percent of wages and salaries, according to TrimTabs’ Schnapp.

“No matter how bad the situation is in the US, we stand far better on these issues (debt, demographics, entrepreneurship) than other countries,” said Steve Cortes of Veracruz Research. “On a relative basis, America remains the world leader and, as such, will also remain the world's reserve currency.”

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Nancy Pelosi is on record for stating that unemployment insurance benefits is an economic stimulus-- Of course this being taken out of the so-called economic stimulus bill of 787 BILLION dollars that was delivered to the states to provide unemployment insurance benefits. Money that was shoved down our throats with a promise to create private sector jobs.

It's of no surprise that 1/3 of the wages in this country is delivered by the working taxpayers of this country. And if it keeps going down this road with no serious cuts to social security--medicare (which make up 40% of the federal budget)--this country will turn into a 3rd world country. Baby boomers are retiring into these two funds by 18,000 per day and this will continue for the next 15 years.

Everything needs to be on the chopping block and there should be no sacred cows in this. If Americans don't understand what a too big out of control federal government has done--they are truly blind.

So, what we need is for the Congress to take a serious look at the entitlement programs.
1. Social Security: Raise the retirement age; base Social Security Retirement payments on a sliding scale. The more you make in retirement income the less you get from Social Security. Make Social Security basically a insurance program, if you need it you get it; if you are making let say $50,000 a year as a married couple...no Social Security

2.Medicare same requirements as above

3.Medicaid take a real close look at who and why they are on Medicaid

4. Unemployment benefits: reduce the number of weeks allowed for payment. Must have proof that you are looking for a job. Too many sit around and wait for unemployment to run out before they start looking

5. Welfare. Reform it. Welfare payments can only be use for food and shelter plus a annual allotment for clothing. No more big screen TV's, trips to the casinos, etc.

6. No payments if you are in this country illegally.

I miss any?

Ladies, Gentlemen, other... it is only going to get worse. The economy is not getting all that much better no matter how much government is trying to spend and we have a significant level of people, baby boomer generation, moving into the realm of social security. 34%-35% of the population getting "wages" or "income" or from the government is only the beginning. I'd expect to hit 40% or more within the next 5 years, easy. With a nice debt to go along with it.

Originally Posted by CSA

well they are not taxable wages ... These are wages given for voting democrat!

Thats a pretty good wage per hour! Pull lever, my work here is done, now to collect.

Originally Posted by Disillusioned_1

My biggest gripe is that people whine about government entitlements, but then the very same people are the first in line demanding their entitlements. Conservatives whine about the system being a failure, yet they want to do nothing to save it, and they still want their handout that they feel they have coming. They can't have their cake and eat it too. Either they have to be willing to sacrifice some of their entitled benefits, or pay more taxes, or abolish the system and declare all benefits null-and-void, even the ones they think are rightfully 'theirs'.

You are exactly correct. It's one of the many hypocrisies of conservatives and more proof that they only believe in limited government when it suits them.

Originally Posted by CSA

SS is a handout.. the way the government makes believe you are getting what you put in though makes people think its not.

I knoe someone who at 18 "hurt" his back.. he has been on SS since.. he rides a motorcycle, just had his thrid baby and runs a pt business that is his "Wifes" so he can work, but like the handout.

And you are an accomplice in this fraud because you do not turn him in.

Originally Posted by CSA

SS is a handout.. the way the government makes believe you are getting what you put in though makes people think its not.

I knoe someone who at 18 "hurt" his back.. he has been on SS since.. he rides a motorcycle, just had his thrid baby and runs a pt business that is his "Wifes" so he can work, but like the handout.

I have heard of this happening way too often. People thinks its alright if they do that because in America you can just have money for free. What they dont realize is there are going to be enough of them to bring down the system they depend on...

Originally Posted by goober

Wow, the private enterprise system is failing miserably, what's wrong with the capitalist system?

The system governing it that pays people to sit on their asses.

Rather than viewing the "handouts" as a management problem that's correctable, I'm seeing it as a symptom of a greater disaster: America is no longer a self-sufficing economic unit.

It is one thing to make most everything we need and trade with other nations for some of what we want. But when we reach a point where we trade with other nations for much of what we need, and it is they who come to us for some of what they want ..

.. Then they hold us hostage to their standard of living.

Poverty permeates and breeds whereever and however it's invited.

Either we choose not to let it in, or we'll most certainly suffer its diabolical spread .. and, we have.

Originally Posted by Dragontalk

As jobs disappear, expect that percentage to increase. Don't like it? Discourage outsourcing, encourage unions, push wages up, push for more at-home employment. More jobs and better paying jobs = less welfare.

Keep setting policy according to whatever maximizes the corporate bottom line and this situation will only get worse.

Do you even understand why there is outsourcing?

I know of a way that could help SS a little.................Stop killing your babies!