The socialists among us must be thrilled with the news that one out of every six dollars of Americans’ income now comes from the government.
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.
While a little peace of mind during an economic crisis is certainly nice, it looks like we’re getting too much of a good thing. Where’s the incentive to work when you can sit home and receive a check? Not to mention the cost of all of this government assistance. That cost has a way of taking away the incentive of the producers in society.
