Gonna Run Out of Workers Soon

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Americans depended more on government assistance in 2010 than at any other time in the nation’s history, a USA TODAY analysis of federal data finds. The trend shows few signs of easing, even though the economic recovery is nearly 2 years old.

Trays of printed Social Security checks wait to be mailed from the U.S. Treasury’s Financial Management services facility in Philadelphia.
A record 18.3% of the nation’s total personal income was a payment from the government for Social Security, Medicare, food stamps, unemployment benefits and other programs in 2010. Wages accounted for the lowest share of income — 51.0% — since the government began keeping track in 1929.

The income data show how fragile and government-dependent the recovery is after a recession that officially ended in June 2009.

The wage decline has continued this year. Wages slipped to another historic low of 50.5% of personal income in February. Another government effort — the Social Security payroll tax cut — has lifted income in 2011. The temporary tax cut puts more money in workers’ pockets and counts as an income boost, even when wages stay the same…” Read more here: too many dependents, too few workers

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