Thursday, October 6, 2011

Dependency on government. Part of reason for problems we're facing.

One of the reasons we have massive government deficits and difficulty cutting spending is nearly half the US population lives in a household where somebody receives government benefits. Up from just under 30% in 1983.

A Wall Street Journal story notes:
Nearly half, 48.5%, of the population lived in a household that received some type of government benefit in the first quarter of 2010, according to Census
data. Those numbers have risen since the middle of the recession when 44.4% lived households receiving benefits in the third quarter of 2008.

The share of people relying on government benefits has reached a historic high, in large part from the deep recession and meager recovery, but also because of the expansion of government programs over the years.

Means-tested programs, designed to help the needy, accounted for the largest share of recipients last year. Some 34.2% of Americans lived in a household that received benefits such as food stamps, subsidized housing, cash welfare or Medicaid (the federal-state health care program for the poor).

Another 14.5% lived in homes where someone was on Medicare (the health care program for the elderly). Nearly 16% lived in households receiving Social Security.

High unemployment and increased reliance on government programs has also shrunk the nation’s share of taxpayers. Some 46.4% of households will pay no federal income tax this year, according to the nonpartisan Tax Policy Center. That’s up from 39.9% in 2007, the year the recession began.
This is part of the reason we're running up our massive deficits. It's too difficult politically to cut back on massive social programs because so many people are dependent on some form of government benefit.

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