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1 of every 6 dollars of Americans' income is government check or voucher...

Discussion in 'Political Zone' started by JBond, Jun 4, 2009.

  1. JBond

    JBond Well-Known Member

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    1 of every 6 dollars of Americans' income is government check or voucher...

    The recession is driving the safety net of government benefits to a historic high, as one of every six dollars of Americans' income is now coming in the form of a federal or state check or voucher.
    Benefits, such as Social Security, food stamps, unemployment insurance and health care, accounted for 16.2% of personal income in the first quarter of 2009, the Bureau of Economic Analysis reports. That's the highest percentage since the government began compiling records in 1929.

    In all, government spending on benefits will top $2 trillion in 2009 — an average of $17,000 provided to each U.S. household, federal data show. Benefits rose at a 19% annual rate in the first quarter compared to the last three months of 2008.

    The recession caused about half of the increase, according to the report. Unemployment insurance nearly tripled in the past year. The other half is the result of policies enacted during President George W. Bush's first term.

    Following the 2001 recession — when costs normally decline — social spending soared to pay for the Medicare drug benefit, expanded health care for children and greater use of food stamps.

    The safety net is working, advocates say.

    "We're not seeing the hunger we saw in the 1930s because the food stamp program is doing what it's supposed to do," says Florida food stamp director Jennifer Lange.

    What's driving the $209 billion increase in benefit costs from a year ago:

    •Unemployment insurance. One-fourth of the extra spending covers jobless benefits, a program started in the Depression. The stimulus law, passed in February, increased benefits.

    • Social Security. The bad economy has prompted a 10%-15% jump in early retirements, the program's actuary says. A 5.8% increase took effect January 1. Bottom line: $55 billion in new costs.

    • Food stamps. Enrollment hit a record 33.2 million people in March, up 5.2 million from last year. The stimulus law boosted the size of the benefit. Average March benefit: $114 per person.

    "The increase in social spending is still relatively modest given the severity of the downturn," says economist Dean Baker of the liberal Center for Economic and Policy Research. "We're not France."

    Adam Lerrick, economist at the conservative American Enterprise Institute, says the benefits' explosion will eventually lead to an economic crisis.

    "We've seen this movie before in many countries. It always has the same ending," he says.

    ABQCOWBOY Moderator Staff Member

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    Healthcare has not even kicked in yet.
  3. JBond

    JBond Well-Known Member

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    I have read estimated costs of a least two trillion a year. That would change the ratio to 1 out of every 3 dollars of "income" that is redistributed by the government.
  4. Yeagermeister

    Yeagermeister Active Member

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    CHANGE!!!!!!!!!!!! It's all that is in your pocket
  5. sbark

    sbark Well-Known Member Zone Supporter

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    One has to wonder, for anything resembling a "moderate Lib" (search is on)...what is the final straw with Obama? At what point will this moderate, moderate Lib say ENOUGH...........

    my presumption it is only when it finally hits their personal pocket....as long as somebody elses money, property, rights are being infrindged upon its will be ok.............they will sit back and be content in the warm water.......

    ABQCOWBOY Moderator Staff Member

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    I think this is correct. I was listening today that the President was thinking about a PayCzar. This would be the guy that goes into any privately owned company and looks into what people are getting paid. I think it's interesting that the President of the United States does not legally have the power to do this. A person that was legally elected to office by the people of this Country, yet he can appoint somebody that is not elected, not confirmed by Congress, in fact a guy off the street if the President so chooses, can come in and have access to this kind of information.

    It's criminal and I can not understand how this country is allowing it to happen. The people of this country are allowing it happen. Makes me sick to my stomach that people would allow there freedoms to be given away so lightly.

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