Entitlements Now Account for One-Third of All US Wages

Wednesday, 09 Mar 2011 12:55 PM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Government benefits such as Social Security, Medicare, and unemployment insurance now account for more than a third of all wages in the United States. The social welfare benefits accounted for 35 percent of wages and salaries this year, compared to 21 percent in 2000, CNBC reported.

In 1960, they made up just 10 percent, according to a study of Bureau of Economic Analysis data conducted by TrimTabs Investment Research. The situation is expected to get worse as waves of baby boomers begin to retire.

TrimTabs’ Madeline Schnapp said the “U.S. economy has become alarmingly dependent on government stimulus. Consumption supported by wages and salaries is a much stronger foundation for economic growth than consumption based on social welfare benefits,” CNBC said.

In order to get back to a pre-recession rate of 26 percent, Schnapp said “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.”

Nonetheless, the United States still trails European countries. As a comparison, Schnapp notes that in the United Kingdom, social welfare benefits make up 44 percent of wages and salaries, CNBC said.

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

ESPN: NFL's Ravens Knew About Rice Video Within Hours

Friday, 19 Sep 2014 22:03 PM

The Baltimore Ravens knew about the video of star running back Ray Rice knocking out his then-girlfriend in an elevator  . . .

Blogger to Put Anti-Islam Posters on NYC Buses, Subway

Friday, 19 Sep 2014 22:22 PM

A New York blogger is putting up ads next week on 100 city buses and at two subway entrances featuring anti-Islamic mess . . .

Biden Praises Disgraced Packwood at DNC Women's Event

Friday, 19 Sep 2014 21:13 PM

In a speech on Friday celebrating women's leadership for the Democratic National Committee, Vice President Joe Biden pra . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved