Thanks, Obama…Private Pay Shrinks to Historic Lows as Gov’t Payouts Rise

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.

Economist Veronique de Rugy of the free-market Mercatus Center at George Mason University says the riots in Greece over cutting government benefits to close a huge budget deficit are a warning about unsustainable government income programs.

Economist David Henderson of the conservative Hoover Institution says a shift from private wages to government benefits saps the economy of dynamism. “People are paid for being rather than for producing,” he says.

From:  http://www.usatoday.com/money/economy/income/2010-05-24-income-shifts-from-private-sector_N.htm

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