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.