Welfare makes up 35 percent of wages in USA

[Sam Gunn (since nobody got Admiral Naismith)]

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,” 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.”

http://www.cnbc.com/id/41969508/

[Turd Ferguson]

I wonder at what percentage it will all fall apart. 40%....... 50%? How much more can it handle?

[davann]

I guess the question of how much more would depend on the difference of actual wages and welfare wages. I believe average wages for workers has not risen in the past couple of decades has it?

[atomiccat]

I think we will become a third world nation before it collapses, we can only hope that the states will succeed before then making the feds collapse 

[Turd Ferguson]

I guess the question of how much more would depend on the difference of actual wages and welfare wages. I believe average wages for workers has not risen in the past couple of decades has it?

If you account for inflation, actual wages have decreased, necessitating the need for 2 workers per household and sometimes more than one job each. Each dollar of welfare or actual wages buys far less than it used to, but the number of dollars given to welfare  has kept up with inflation far greater than the private sector.

[libertylover]

You could compare it to the UK.  They are still limping along with a much higher welfare burden than here in the US.  They also have a higher government worker ratio than we have in the US.  Could the UK be the canary in the coal mind for what the US should expect?  Maybe not because the UK isn't attempting the police the world at the same time.

[Turd Ferguson]

You could compare it to the UK.  They are still limping along with a much higher welfare burden than here in the US.  They also have a higher government worker ratio than we have in the US.  Could the UK be the canary in the coal mind for what the US should expect?  Maybe not because the UK isn't attempting the police the world at the same time.

Plus the fact that they aren't the worlds reserve currency, so they have less far to drop on the economic scale than we stand to. If we lose reserve status, which is happenening a little at a time every week, the US is FUCKED.

[Alex Libman]

"Government" "employee" "wages" should count as "welfare" also.

[Laetitia]

"Government" "employee" "wages" should count as "welfare" also.

I don't agree, but I would be interested to know that percentage - both on it's own and added with the government welfare payouts.

[Sam Gunn (since nobody got Admiral Naismith)]

"Government" "employee" "wages" should count as "welfare" also.

I don't agree, but I would be interested to know that percentage - both on it's own and added with the government welfare payouts.

I remember recently seeing a stat showing that just over 50% of American citizens receive government money of some kind.

[Zhwazi]

"Government" "employee" "wages" should count as "welfare" also.

I don't agree, but I would be interested to know that percentage - both on it's own and added with the government welfare payouts.

I remember recently seeing a stat showing that just over 50% of American citizens receive government money of some kind.

This is how we know that democracy is working.

[Laetitia]

"Government" "employee" "wages" should count as "welfare" also.

I don't agree, but I would be interested to know that percentage - both on it's own and added with the government welfare payouts.

I remember recently seeing a stat showing that just over 50% of American citizens receive government money of some kind.

Huh. So that would put the percentage of the american workforce employed by federal government is 15%... in theory.
I'm curious - will see what I can dig up after I put the kidlets to bed.

[Cognitive Dissident]

It's debatable how much of that is "welfare."  A lot of it is stuff that would be handled (better) by the market if the government didn't do it, so it would still exist.  It would probably be about 1/3 as costly and more effective, though.

"Government" "employee" "wages" should count as "welfare" also.

I don't agree, but I would be interested to know that percentage - both on it's own and added with the government welfare payouts.

I remember recently seeing a stat showing that just over 50% of American citizens receive government money of some kind.

You mean...other peoples' money, stolen by and recycled through government?

[davann]

I'm curious - will see what I can dig up after I put the kidlets to bed.

The census people might have some data on their web site. Not sure about the accuracy.

[Alex Libman]

It's not a binary attribute.  Every job in the world is based in government theft to some degree.  For example, the IT Security career that I walked away from had an ever-growing fuckload of government funding and government pressure to acquire our services, especially after 9/11.  Most of IT Security compliance is "theater", same as in airports, etc.  We are all buried in government shit, it's just a matter of staying afloat and holding your chin up...