In Case You Missed This Cheery News

What could possibly go wrong with this scenario

Paychecks from private business shrank to their smallest share of personal income in U.S. history during the first quarter of this year, a USA TODAY analysis of government data finds.

At the same time, government-provided benefits — from Social Security, unemployment insurance, food stamps and other programs — rose to a record high during the first three months of 2010.

Those records reflect a long-term trend accelerated by the recession and the federal stimulus program to counteract the downturn. The result is a major shift in the source of personal income from private wages to government programs.

Make no mistake, this is how the government wants it. Their power depends on making us dependent on their handouts. They do not care in the least about the economics of this

The trend is not sustainable, says University of Michigan economist Donald Grimes. Reason: The federal government depends on private wages to generate income taxes to pay for its ever-more-expensive programs.

The government’s “ace” in their sleeve is their ability to print more money; they believe they can inflate away the current debt and some mystical “future growth” by an increasingly non-existent private sector will be taxed to pay for everything.

And meanwhile our debt-to-GDP ratio is now over 90%.

We need to starve this beast, and starve it now.

Comments are closed.

Image | WordPress Themes