USA Today has posted an article stating that one out of every six dollars earned by Americans is from the government. This income amounts to 16.2 % of personal income during the first quarter of 2009. That is the highest percentage since record keeping began in 1929. This includes all government benefit programs--Social Security, food stamps, medical benefits, and unemployment insurance.
The article states that:
"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."
That is not sustainable. There has been a $209 billion increase in government benefit costs from a year ago. Part of the problem is that we have reached the tipping point where more than 50% of Americans do not pay any income tax. Therefore, there is no incentive among voters to rein in spending. If this trend continues, prosperity and the American dream will become a distant memory.
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