US earnings: thirty-five % welfare, claims research

Here’s something that may not surprise you: 35 % of complete U.S. salary are actually government payouts, like Social Security, Medicare and welfare. This is in accordance with stats from the Bureau of Economic Analysis. This has shocked quite a few economists. CNBC Fast Money Executive Producer John Melloy suggests that this record figure will continue to expand as the majority of the Baby Boom generations retire.

United States wage figures

The U.S. salary survey, which was conducted by TrimTabs Investment Research, indicated that the percentage of wages has grown considerably, even since 2000. In 2000, about 21 % of salary came from government aid which has changed last year to thirty-five %. It was only at 10 % in 1960. The welfare salary is at 44 percent in the U.K. though meaning it isn't that bad.

TrimTabs' Director of Macroeconomic Research, Madeline Schnapp, said that there needs to be less of dependence in the U.S. on the government.

"The U.S. economy has become alarmingly dependent on government stimulus," she said. "Consumption supported by wages and salaries is a much stronger foundation for economic growth than consumption based on social welfare benefits."

Increasing wages by thirty-five % (from $6.5 trillion to $8.8 trillion) or a 23 % cut to social welfare payouts (tumbling down 23 % to $1.7 trillion) are the best options accessible, according to Schnapp. Considering that the federal government is already stringing together short-term, shoestring measures to avert a government shutdown, experts believe only a significant compromise will turn the tide for United States salaries versus social welfare services.

Social Security approval in United States

A decision needs to be made easily for the U.S. government. This is because bankruptcy may take place otherwise. A Wall Street Journal/NBC News poll showed the option of reducing Social Security and Medicare isn’t very popular. Much of the age groups checked "unacceptable" in reducing Social Security. This would be a drastic reduction. Even the tea party members checked this box even though typically tea party supporters don't believe in large government. There were 67 of these individuals.

Two choice measures were supported by the poll participants who included 60 percent of votes for cutting Social Security and Medicare repayments to anybody in the United States that has a higher income and increasing retirement age by 2075 to 69. Age 66 is when retirement benefits entirely are in. The age is not scheduled to increase until 2027, and then it can be 67.

Getting the recession back to life

The recession that set in during 2008 hit the United States hard. Thus, it comes as little surprise that welfare payments increased by a mind-boggling $514 billion since then, states TrimTabs. A recovery in the near future is unlikely. The United States housing industry nevertheless needs to shape up. Thus, a cure for the 35 percent welfare salary percentage may still be far away.

Citations

CNBC

cnbc.com/id/41969508

Wall Street Journal

online.wsj.com/article/SB10001424052748704728004576176741120691736.html

For those who can’t afford to work

youtube.com/watch?v=KqdsfPMKnyg