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USATODAY:
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.
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. “This is really important,” Grimes says.
The recession has erased 8 million private jobs. Even before the downturn, private wages were eroding because of the substitution of health and pension benefits for taxable salaries.
The Bureau of Economic Analysis reports that individuals received income from all sources — wages, investments, food stamps, etc. — at a $12.2 trillion annual rate in the first quarter.
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 was paid as wages to government employees.
The shift in income shows that the federal government’s stimulus efforts have been effective, says Paul Van de Water, an economist at the liberal Center on Budget and Policy Priorities.
“It’s the system working as it should,” Van de Water says. Government is stimulating growth and helping people in need, he says. As the economy recovers, private wages will rebound, he says.
Economist Veronique de Rugy of the free-market Mercatus Center at George Mason University says the riots in Greece over cutting benefits to close a huge budget deficit are a warning about unsustainable income programs.
Economist David Henderson of the conservative Hoover Institution says a shift from private wages to government benefits saps the economy of dynamism. “People are paid for being rather than for producing,” he says.
So the majority of people’s wages and earnings come from the government.
47% of the people don’t even pay taxes (according to the IRS).
And governments don’t produce anything.
Governments have no money except what they take from you.
And now a majority of the American people are on the government dole.
So do you think they will vote to kiss their own butts or worry about their “grand children”??
Narcissism is a 21st Century epidemic.
What do you think?
Obama’s “laser beam focus” on jobs has produced what exactly?
Nothing.
The better question is, was it supposed to create anything, but smoke?
No.
SEIU, Service Workers International Union, the largest Government Union of Government employees.
The same people who have been used as thugs and intimidators before by the LEFT.
On May 16, Washington, D.C., police escorted 14 busloads full of Service Employees International Union (SEIU) members at least part of the way to storm the Chevy Chase, Md., home of Bank of America’s deputy legal counsel, Greg Baer.
Some 500 protestors affiliated with SEIU and their allies in the community organizing group National Political Action (NPA) trampled his lawn, blocked his doorway to his home and screamed “greed.” Legally, it was burglary, trespassing and, possibly, assault.
But Maryland cops didn’t enforce the law. And Baer had to brave the insult-hurling mob alone to rescue his 14-year old son who, home alone, had locked himself in the bathroom in fear.
SEIU spokesman Stephen Lerner response was chilling: “People in powerful corporations seem to think they can insulate themselves from the damage they are doing,”
Perhaps we shouldn’t be surprised. Aggressive, personalized protests have been a fact of life in the world of unions and community organizers influenced by the radical philosophy of Saul Alinsky.
But they’re now growing in frequency as SEIU officials top the White House visitors’ list and union influence grows.
It started in earnest last year, when SEIU thugs gave a “beat down” to a black trinket seller at a tea party protest — with no consequences.
It also was seen when the SEIU teamed up with its community-organizing ally Acorn to set up bus harassment tours of AIG executives’ homes during last year’s insurance bailout.
In recent weeks in New York and Washington, SEIU and NPA protestors invaded and shut down banks, frightening customers.
What’s important here is that these mobs act with near impunity and lash out at critics like Easton. What Stern calls “the persuasion of power” is identical to the violent means of maintaining political order in Cuba and Venezuela.
It’s going full blast in the U.S. now as the party in power loses popularity. That’s a bad sign that democracy itself is under attack. (IBD)
So the government has less money coming in, because private wages pay taxes with their own money, unlike a government person.
Less than half of the people in this country pay taxes at all.
The Government unions, which make a majority of Union membership in this country, are used as Alinsky-inspired thugs.
The Private sector is demonized and intimidated.
The American People who objected are “racists”, “terrorists”,”teabaggers”,”nazis”, “heartless”,”cruel”,”mean” et al.
Oh, and Congressmen want to bail out the Unions, yet again!
That’s what the Stimulus last year was all about.
But now the Unions’ unsustainable pensions (you know the ones where you can retire at 50 and make more money in retirement than you did working!) are failing so the Democrats have to bail them out, with our money.
From that dwindling pot of non-government incestuous money.
Meanwhile, 8 Million jobs evaporated under Obama.
Medicare is bankrupt.
Social Security is bankrupt.
But yet, Democrats pass the largest entitlement in a generation, The Health Care bill.
Fascinating…
But The Unions get stronger and stronger.
Union are very zealously Democrats.
Funny That.
A Democratic senator (Sen. Bob Casey D-PA,reportedly) is introducing legislation for a bailout of troubled union pension funds. If passed, the bill could put another $165 billion in liabilities on the shoulders of American taxpayers.
The bill, which would put the Pension Benefit Guarantee Corporation behind struggling pensions for union workers, is being introduced by Senator Bob Casey, (D-Pa.), who says it will save jobs and help people.
As FOX Business Network’s Gerri Willis reported Monday, these pensions are in bad shape; as of 2006, well before the market dropped and recession began, only 6% of these funds were doing well.
Although right now taxpayers could possibly be on the hook for $165 billion, the liability could essentially be unlimited because these pensions have to be paid out until the workers die.
It’s hard to say at the moment what the chances are that the bill will pass. A hearing is scheduled Thursday, which will give the public a sense of where political leaders sit on the topic, said Willis.
Just last week President Obama said there would be no more bailouts.
So that’s why we also have a bailout for the National Education Association- The Teacher’s Union:
Yet another example of public sector employee union smash and grab, at a time when private sector workers are desperate for jobs:
The Obama administration on Thursday threw its support behind a $23 billion measure intended to avert large-scale teacher layoffs, urging Congress to include the effort in a spending bill lawmakers are drafting to fund wartime costs and other urgent needs.
“We are gravely concerned that ongoing state and local budget challenges are threatening hundreds of thousands of teacher jobs for the upcoming school year,” Education Secretary Arne Duncan wrote in a letter to House Speaker Nancy Pelosi (D-Calif.) and Senate Majority Leader Harry Reid (D-Nev.).
Duncan added: “These budget cuts would also undermine the groundbreaking reform efforts under way in states and districts all across the country.”
What’s particularly galling about this is that a huge chunk of the stimulus is already devoted to education funding. In particular, the $53.6 billion State Fiscal Stabilization Fund, included $39.5 billion for local school districts to prevent teacher layoffs and program cuts. Further, it’s notortiously difficult to fire incompetent teachers, thanks to union strictures. Los Angeles Unified School District spent $3.5 million just to fire seven bad teachers out of over 33,000 on the payroll. And we’re supposed to prop them up?
And there’s talk about eliminating Summer School in many places!
And in the UK, they are some schools to provide 3 meals a day!
But we have to give the NEA a bailout!
So no more bailouts, unless it’s a Union, because they are big Democrats.
So we will bail out Unions, But demonize private business as “greedy”
No wonder Liberals are always going on about Illegal Aliens who pay taxes, because they themselves don’t!
Liberals complain about “greedy” corporations, but they themselves are very “greedy” with everyone else’s money.
The world is truly upside down and bass ackwards.
And the Liberals want it that way.
We are from the Government and we are here to help you.
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