Who's shrinking the American paycheck?

More and more of Americans' income is coming from government benefits, and less and less from private-sector paychecks

Why can't hard-working Americans get a break?
(Image credit: Corbis)

Thanks to the recession, paychecks from private companies have sunk to an all-time low, as a percentage of the nation's income, while benefits from the government have ballooned to a record high, according to USA Today. In the first three months of 2010, only 41.9 percent of the nation's personal income came from private wages and salaries, down from 44.6 percent in December 2007. Meanwhile, Americans got 17.9 percent of their income from government programs, such as Social Security, unemployment insurance, and food stamps, up from 14.2 percent in 2007, before the recession started. Is this just a side-effect of the government's efforts to fight the recession, or a sign of economic trouble ahead?

We're headed for disaster: The U.S. was on a path to go broke on entitlement spending before Barack Obama became president, says Ed Morrissey in Hot Air. But in the last 16 months, "we’ve doubled down" with new boondoggles — including those health-care subsidies that kick in in 2014. We're now going bankrupt at a "breakneck pace."

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
To continue reading this article...
Continue reading this article and get limited website access each month.
Get unlimited website access, exclusive newsletters plus much more.
Cancel or pause at any time.
Already a subscriber to The Week?
Not sure which email you used for your subscription? Contact us