State and Federal Support Checks Now Account for 16% of Americans’ Income
June 4th, 2009We need the Government Motors People’s Car to really get this party started.
On the other end of the spectrum, I wonder what percentage of executive salaries were derived from bailout money?
Via: USA Today:
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.
