Tuesday, May 25, 2010

Well .. it is change

USA Today reports that income from the private sector hits an all-time low.
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.

So, President Urkel continues to grow the federal government while decimating the private sector. This really should come as no surprise since he did promise to "spread the wealth around."

But here is the problem, which even USA Today feels compelled to report:
The trend is not sustainable, says University of Michigan economist Donald Grimes. Reason: The federal government depends on private wages to generate income taxes to pay for its ever-more-expensive programs. Government-generated income is taxed at lower rates or not at all, he says.

1 comment:

  1. That's why we need to spend more money!


    B. Hussein Obama

    ReplyDelete

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