Government payouts supply more than 1/3 of all wages in the U.S.

[Disco Pickle]

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

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."

The economist gives the country two stark choices. In order to get welfare back to its pre-recession ratio of 26 percent of pay, "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," she said.

Last month, the Republican-led House of Representatives passed a $61 billion federal spending cut, but Senate Democratic leaders and the White House made it clear that had no chance of becoming law. Short-term resolutions passed have averted a government shutdown that could have occurred this month, as Vice President Biden leads negotiations with Republican leaders on some sort of long-term compromise.

"You've got to cut back government spending and the Republicans will run on this platform leading up to next year's election," said Joe Terranova, Chief Market Strategist for Virtus Investment Partners and a "Fast Money" trader.

Terranova noted some sort of opt out for social security or even raising the retirement age.

But the country may not be ready for these tough choices, even though economists like Schnapp say something will have to be done to avoid a significant economic crisis.

A Wall Street Journal/NBC News poll released last week showed that  less than a quarter of Americans supported making cuts to Social Security or Medicare in order to reign in the mounting budget deficit.

Those poll numbers may be skewed by a demographic shift the likes of which the nation has never seen. Only this year has the first round of baby boomers begun collecting Medicare benefits—and here comes 78 million more.

Social welfare benefits have increased by $514 billion over the last two years, according to TrimTabs figures, in part because of measures implemented to fight the financial crisis. Government spending normally takes on a larger part of the spending pie during economic calamities but how can the country change this make-up with the root of the crisis (housing) still on shaky ground, benchmark interest rates already cut to zero, and a demographic shift that calls for an increase in subsidies?

At the very least, we can take solace in the fact that we're not quite at the state welfare levels of Europe. In the U.K., social welfare benefits make up 44 percent of wages and salaries, according to TrimTabs' Schnapp.

"No matter how bad the situation is in the US, we stand far better on these issues (debt, demographics, entrepreneurship) than other countries," said Steve Cortes of Veracruz Research. "On a relative basis, America remains the world leader and, as such, will also remain the world's reserve currency."

(emphasis is mine)

dumping this here before I leave for home, so probably wont be able to discuss until tomorrow.  I can't imagine anyone thinking this is a good thing, but I'd love to hear thoughts on why if anyone DOES. 

[The Good Reverend Roger]

Of course this is a good thing.

It will drive the teabaggers bananas...and isn't that what really matters?

TGRR,
Has no interest in the actual well being of the nation.

[Luna]

Of course this is a good thing.

It will drive the teabaggers bananas...and isn't that what really matters?

TGRR,
Has no interest in the actual well being of the nation.

Except, of course, for the percentage of teabaggers actually ON Medicare, Social Security, and collecting unemployment. 

[Don Coyote]

Of course this is a good thing.

It will drive the teabaggers bananas...and isn't that what really matters?

TGRR,
Has no interest in the actual well being of the nation.

Except, of course, for the percentage of teabaggers actually ON Medicare, Social Security, and collecting unemployment. 

It will still drive them crazy, maybe moreso due to the conflict between "SOCIALISMBAD" and "SHITNEEDOXYGENANDRASCAL"

[Jenne]

Of course this is a good thing.

It will drive the teabaggers bananas...and isn't that what really matters?

TGRR,
Has no interest in the actual well being of the nation.

Except, of course, for the percentage of teabaggers actually ON Medicare, Social Security, and collecting unemployment.  

Hyup.  Here's the thing--if anyone actually thinks those in the Libertarian or TeaParty are NEVER EVER government employees, on the public dole or Medicare/Welfare users...well, I got a bridge to sell you.

But and however, pointing out said hyprocrisy seemingly gets us NOFUCKINGWHERE with these idjits.  It's like they're robots and just plug in the same thing over and over and over and over and over again.  Not thinking, just emoting.  Rage spewing with mighty spittleage.  Justifiable because of their FEELINGS of displacement and anger at the establishment.

Never mind they ARE the establisment, use and ABUSE the establishment, and are the reason the establishment perpetuates, exists, etc.  All the God-fearing,  Conservative, white, aging, upper class men that run their government are THEIR HEROES!  And I'm really fucking tired of TeaBaggers NOT realizing that they are just handing their asses to the GOP, lockstep, nonstop, over and over and over and over and over...

[Suu]

Of course this is a good thing.

It will drive the teabaggers bananas...and isn't that what really matters?

TGRR,
Has no interest in the actual well being of the nation.

Except, of course, for the percentage of teabaggers actually ON Medicare, Social Security, and collecting unemployment. 

Please, that's like 80% of them.

[The Good Reverend Roger]

Of course this is a good thing.

It will drive the teabaggers bananas...and isn't that what really matters?

TGRR,
Has no interest in the actual well being of the nation.

Except, of course, for the percentage of teabaggers actually ON Medicare, Social Security, and collecting unemployment. 

Please, that's like 80% of them.

We could eliminate the military.  That would end a good deal of this largesse.

[Requia ☣]

Does this include wages payed out by companies with government contracts?

[Disco Pickle]

Of course this is a good thing.

It will drive the teabaggers bananas...and isn't that what really matters?

TGRR,
Has no interest in the actual well being of the nation.

Except, of course, for the percentage of teabaggers actually ON Medicare, Social Security, and collecting unemployment. 

Please, that's like 80% of them.

Does this include wages payed out by companies with government contracts?

can't be sure, would have to get into the report.  I don't believe that was part of the scope, but when I find out I'll post.

[The Good Reverend Roger]

Of course this is a good thing.

It will drive the teabaggers bananas...and isn't that what really matters?

TGRR,
Has no interest in the actual well being of the nation.

Except, of course, for the percentage of teabaggers actually ON Medicare, Social Security, and collecting unemployment. 

Please, that's like 80% of them.

Okay, you tell me...How DO your buddies afford to stand around screaming incoherently at rallies 3 days a week?

[Disco Pickle]

Of course this is a good thing.

It will drive the teabaggers bananas...and isn't that what really matters?

TGRR,
Has no interest in the actual well being of the nation.

Except, of course, for the percentage of teabaggers actually ON Medicare, Social Security, and collecting unemployment. 

Please, that's like 80% of them.

Okay, you tell me...How DO your buddies afford to stand around screaming incoherently at rallies 3 days a week?

I don't know these rallies you speak of.  Neither I, nor anyone I know goes to rallies.  And if we did, I think it would be hard to find one that is held 3 times a week, consistently.

Taking a few days off so you can show up at one is the most common method I believe.  Isn't that what's happening in Wisconsin?

[The Good Reverend Roger]

Of course this is a good thing.

It will drive the teabaggers bananas...and isn't that what really matters?

TGRR,
Has no interest in the actual well being of the nation.

Except, of course, for the percentage of teabaggers actually ON Medicare, Social Security, and collecting unemployment. 

Please, that's like 80% of them.

Okay, you tell me...How DO your buddies afford to stand around screaming incoherently at rallies 3 days a week?

I don't know these rallies you speak of.  Neither I, nor anyone I know goes to rallies.  And if we did, I think it would be hard to find one that is held 3 times a week, consistently.

Taking a few days off so you can show up at one is the most common method I believe.  Isn't that what's happening in Wisconsin?

Not very important.  I was just fishing a bit, to see if you identified yourself with the teabaggers.

Thank you for confirming that.

[Disco Pickle]

Of course this is a good thing.

It will drive the teabaggers bananas...and isn't that what really matters?

TGRR,
Has no interest in the actual well being of the nation.

Except, of course, for the percentage of teabaggers actually ON Medicare, Social Security, and collecting unemployment. 

Please, that's like 80% of them.

Okay, you tell me...How DO your buddies afford to stand around screaming incoherently at rallies 3 days a week?

I don't know these rallies you speak of.  Neither I, nor anyone I know goes to rallies.  And if we did, I think it would be hard to find one that is held 3 times a week, consistently.

Taking a few days off so you can show up at one is the most common method I believe.  Isn't that what's happening in Wisconsin?

Not very important.  I was just fishing a bit, to see if you identified yourself with the teabaggers.

Thank you for confirming that.

I've said before that I campaigned for Ron Paul in 07 and donated some time to The Republican Liberty caucus here in Florida, then bailed when it became overrun with religious social conservatives.  Some of them mean well, and I met some very nice, dedicated and passionate people who expressed their beliefs intelligently and fluently, it just isn't my cup of tea to tell people what they can and can't do with their own bodies.  To me, that's at complete odds with the concept of liberty, and such a glaring contradiction that I couldn't bring myself to participate.

feel free to laugh at the monkey thinking anything will change by volunteering.  I've had a few good laughs about it over the years since.

[tyrannosaurus vex]

Of course this is a good thing.

It will drive the teabaggers bananas...and isn't that what really matters?

TGRR,
Has no interest in the actual well being of the nation.

Except, of course, for the percentage of teabaggers actually ON Medicare, Social Security, and collecting unemployment. 

Please, that's like 80% of them.

Okay, you tell me...How DO your buddies afford to stand around screaming incoherently at rallies 3 days a week?

I don't know these rallies you speak of.  Neither I, nor anyone I know goes to rallies.  And if we did, I think it would be hard to find one that is held 3 times a week, consistently.

Taking a few days off so you can show up at one is the most common method I believe.  Isn't that what's happening in Wisconsin?

Not very important.  I was just fishing a bit, to see if you identified yourself with the teabaggers.

Thank you for confirming that.

I've said before that I campaigned for Ron Paul in 07 and donated some time to The Republican Liberty caucus here in Florida, then bailed when it became overrun with religious social conservatives.  Some of them mean well, and I met some very nice, dedicated and passionate people who expressed their beliefs intelligently and fluently, it just isn't my cup of tea to tell people what they can and can't do with their own bodies.  To me, that's at complete odds with the concept of liberty, and such a glaring contradiction that I couldn't bring myself to participate.

feel free to laugh at the monkey thinking anything will change by volunteering.  I've had a few good laughs about it over the years since.

As for me, I don't think you're necessarily stupid for volunteering or trying to make a difference. I do however think you are necessarily stupid for using the Republican Party for that goal.

[Bebek Sincap Ratatosk]

As for me, I don't think you're necessarily stupid for volunteering or trying to make a difference. I do however think you are necessarily stupid for using the Republican ANY POLITICAL Party for that goal.

Fixed that for ya Vex