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One-Third of U.S. Wages Come From Welfare Handouts

Reality check.

Welfare State: Handouts Make Up One-Third of U.S. Wages
Published: Tuesday, 8 Mar 2011 | 3:59 PM ET
By: John Melloy

Government payouts—including Social Security, Medicare and unemployment insurance—make up more than a third of total wages and salaries of the U.S. population, a record figure that will only increase if action isn’t taken before the majority of Baby Boomers enter retirement.

Even as the economy has recovered, social welfare benefits make up 35 percent of wages and salaries this year, up from 21 percent in 2000 and 10 percent in 1960, according to TrimTabs Investment Research using Bureau of Economic Analysis data.

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bumping to have time . . .

to look at this later; must get back to work!

it's hard to be awake; it's easier to dream--

Wages must be paid in FRNS

So Wages are 100% Monopolistic or Welfarist.

Does your thinking include all Gov't contracts, all organizations that must move through political / regulatory menutia, does it include Licensure and Direct/Indirect Taxation.

No one works in a free-market -- so we must work in a welfarist market.

There are no markets freer then the next -- it's all Gov't Handled.

Then it all makes sense...

politicians including presidents are elected with approx. 22% to 26% of the the total vote !

Slick plan huh ?

Discover Costa Rica

Complaining about social

Complaining about social security and unemployment welfare is like whining about the stale bread on a sh*t sandwich. Yes, stale bread is not that great, but it's the sh*t filling that really rankles. Instead of begrudging the jobless and elderly their meager pittance, let's focus our ire on the truly despicable thieves at the top of this ponzi scheme. The idea that a third of wages are welfare payments is ludicrous, when one considers that ours is a command economy where powerful interests structure the very laws of the land to line their pockets. The real percentage of people on the dole is probably in the high 90's. Insurance salesmen are welfare queens so long as we are forced to by their worthless product. Banksters are certainly welfare queens as are oil tycoons and airplane manufacturers. Think about it. Most of these trifling social security and unemployment payments go right back into the tax farming system via mortgage and insurance checks.

linux forever!

On Point Mr. Gates

Love the s##t sandwich analogy.

This is the Government blow off top.

You can chart the growth of many things. Stocks, commodities and even Government. They run up and during the end go through a blow off top. This is it. This is the crack up boom. By Halloween we will have lived through history. The banking system will have blown up and the UnFed note will be history. This is going to be terrific.

many of us see this coming

But few put a time frame on it. I hope you are right about the time frame Bezerker, and it will be terrific

March 28th could be the match

Look for systematic failure in the Comex metals on March 28. If you see Silver shooting up uncontrollably (massive rise quick) then max out your credit cards on food, water, and Toilet paper. Buck up folks it is coming and by Halloween we will be starting the Renaissance 2.0 Republic our founders would be proud of. Love your brother and sisters !!!!!!!!!!

Debtor Nation

One night one of my windows was broke and set off my alarm and the police were called. The police searched my house without permission and found six pot plants. I was charged with a felony and lost my job as a bond trader and economist. I made roughly $200k a year. Now I have no job and I don't pay taxes. I lost my home, my horses, and many other material things. But now at least I know my hard earned tax money is not going to kill some poor Iraqi or support the gov't police state.

The gov't is supposed to defend life, liberty and the persuit of happiness. It does this no longer. Why pay them a damn dime? I don't believe in any socialist programs, but as long as they are going to make me a criminal...I'll take that unemployment as long as I can!

And of the 2/3rds remaining, over 1/2 work for government!

If you put it in that perspective, look at just how few people there are left in the private sector, to support the system! Scary! Government workers don't create tangible products that generate wealth based on consumer demand...and since many of our jobs that do have fled the country for lower tax and payroll costs, what will be left eventually as the system becomes larger and larger? We have a huge number of people who are baby boomers who will be retiring in the next 20 years...what then?

I'm moving to Iceland...at least they have stood up to these paper power pushers! They are now on the rebound!

"Liberty tastes sweetest to those who fight for it, and most bitter to those who work to deny it!"


Moving to Iceland...at least they have stood up [to nothing]...

"I'm moving to Iceland... at least they have stood up to these paper power pushers! They are now on the rebound!" - LearnRonPaul

"Paper Power Pushers!" Monumental expression.

Alas, Banks reopened... under new management.

VISA, MasterCard... System remains intact. They repudiated debt based on nothing. It was nothing.

Life need not be complicated.

Iceland is well named. Bring jacket, boots, & gloves. The cold is really something.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Here's a Mark Twain quote you must be familiar with...

The mind exercises a powerful influence over the body. From the beginning of time, the sorcerer, the interpreter of dreams, the fortune-teller, the charlatan, the quack, the wild medicine-man, the educated physician, the mesmerist, and the hypnotist have made use of the client's imagination to help them in their work. They have all recognized the potency and availability of that force. Mark Twain

Now when you gonna be yourself?

"Liberty tastes sweetest to those who fight for it, and most bitter to those who work to deny it!"


May the force be with you.

"They have all recognized the potency and availability of that force. Mark Twain." - Mark Twain, self revelation.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Hey, hey what are you looking

Hey, hey what are you looking at no need to look at the federal resevre, the congressional military industrial complex, welfare for monopoly oil, whoops excuse me oil subsidies, subsidies for "priviate" schools, What what u say why do we pay interest to the federal resevere?? Quick look theres terrorists coming!!! Teachers hate us for are freedoms

When did the economy recover? Guess I am missing it.

Did it recover and nobody except the government, bankers and media noticed?

well, see the Stock Market is up

For Most TV Watching Americans
Stock Market = Economy

A heavy woman I know

Her doctor suggested to her that she go on SS disability. The doctor said she would qualify because of her weight.

She declined and is still working, and trying to lose weight, but found the doctors remarks very disturbing. If you are really obese, you can collect SS, and if you lose weight you lose your welfare income.

This is not a good situation.

no FN Way!

talk about a seriously SERIOUSLY flawed policy...on so many levels. OMG.

nowadays people eat their way

nowadays people eat their way to welfare and a handicap sticker. I think it's disgusting.

How could anybody think that

How could anybody think that this bloated government will continue functioning much longer?

Isn't it obvious that it's on its way to complete bankruptcy/currency destruction?


The title uses the word "handout", but how is Social Security, Medicare and unemployment a handout. I don't know about anyone else, but I have money for all three taken out of my paycheck year in and year out. A handout, welfare, is when money is taken from one person by the government and given to another if I pay into a program and then collect from it how is this a handout? Its like having insurance that you pay for and then thinking that getting money from a claim on that insurance as a handout from the insurance company. Bogus!!!

That being said the way these social programs are designed they will not last and when we truly do handout billions to the banks we make the situation even worse.

Big business AND Big government are one in the same.

Well, to be fair, Medicare

Well, to be fair, Medicare is a bit of a handout.

Social Security costs are fairly easy to predict; payouts are based on the money you put into it + inflation + growth of assets (although the latter is hardly paid out anymore).

Medicare, however, is based on medical need; they don't say "well, you've reach 100% of your contribution; no more coverage fro you". Nobody could have predicted medical costs soaring this much; medicare didn't budget for this much (even though it did collect quite a lot).

If you turned 65 in the 90s, then you are probably going to be "budget neutral". But people who retired afterward, especially those who are 10-20 years away from retirement, are going to be a drain on the budget. And not simply because of inflation, but because people are very unhealty nowadays.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

I agree with you

When you pay for these for over 30 years there is a duty for you to be paid, and it is an implied contract. I believe the way unemployment has been handled the last few years has been abused, but when you pay into Social Security and Medicare for years, you are owed payments.

The people who have been on unemployment for years are not entitled to the extended benefits, that is going into welfare. The unemployment they paid for was just for a few months of payments, not years.

Sorry to burst your bubble, but

Social Security and Medicare are exactly that --welfare programs. It is NOT insurance of any kind. You do not have a policy (contract to receive benefits in exchange for premiums). And the money you pay is not held in TRUST for YOU either--it is merely a TAX that you pay. These taxes paid go into the general revenue fund at the U.S. Treasury, then immediately go out in the form of checks to current Social Security "welfare" recipients. It can also be compared to a pyramid scheme. Social Security has now turned "cash negative", meaning it is now receiving less than it pays out.

The politicians will soon be forced to admit that this is nothing more than a failed welfare scheme. Everything will be done to save it --tax increases, income cap removed, retirement age raised, and means testing (so only the poorest will receive benefits). Also, depreciation of the dollar will undermine the purchasing power of the benefits.

If you are under 50, don't expect to get your money back from Social "Security". Find another way to support yourself in retirement.

Ann in Florida

I FULLY agree that the SS and

I FULLY agree that the SS and Medicare system are not sustainable. The combination of rising medical costs and many more people living longer combined with less new workers paying into the system in is bound to fail as described by many people in detail.

Why is it that people post about SS and Medicare as evil welfare programs that takes one person's money and gives it to another and yet those same people don't see insurance programs the same way. Auto, life, medical, homeowners, etc. all take your money and then if you file a claim they don't just give you your money back to pay for it that take other people's money as well!! How dare they. Now you might say well people shouldn't be forced to buy anything be it SS, Medicare, auto insurance, etc. OK, but now we are getting to a real debate here, we all live in society, like it or not we are all born into it. You can hate it, love it, do nothing about it or fight with all you have to change it or end it, BUT you are a fool if you think you are going to just ignore it. People do foolish things like thinking they can just ignore society and its rules and sooner or later they pay the price. So, we have a society and this society is founded on an idea known as social contract(see John Locke) and that means you have a contract with society like it or not. Now the debate comes into what does that contract entail, what rights do you agree to be limited in exchange for taking part in society, you know all the great stuff like roads, and candy and rock music, etc.

Social security is not insurance

In no way is social security insurance. It's simply a government handout that can change at the government's whim.

At its core, insurance is when you agree to pay a certain amount of money for money in the future.

That's not social security. Social security is where the government takes your money to give to someone else, at a rate determined by the government, and the government is under no obligation to give you anything.

Sometimes I think that Plato was right that elites should rule

You can't choose to opt into the insurance policy known as SS because its part of the social contract. Again, read John Locke, his writings were part of the ideas the founders used into starting this country. If you don't agree with SS that is fine, work to change it, but unless we can start homesteading on far off planet we are stuck with this society.

Society is insurance. If you lived in the state of nature and you knew for sure that you would do just fine then who would buy into society no one, but the state of nature is rather risky, someone might attack you or take the results of your labor and so maybe its worth having society as an insurance policy against such risk, you might never need to make a claim, but its worth the risk.

I am guessing you have insurance of some kind, you agree to pay up front and over time for the protection that if something happens that is uncommon then you can SUBMIT to the insurance company to cover the costs. If you knew you could always cover all your costs in life then it would be silly to get insurance. Also, the insurance company doesn't have to pay, claims get denied all the time and yet people have no problem with this. Their is always risk and faith involved in decisions. After hurricane Katrina millions of people filed insurance claims and many were denied either because the companies flat out denied them or the companies went bankrupt due to all the claims filed. Thats what is happening now with SS, to many people are filing claims for SS checks for too many years so the program is going bankrupt. Its funny though because the government bailed out AIG, but it won't bail out SS, not that I think it should, but clearly certain people gain from AIG being bailed out while other do from SS being bailed out is my point.

The social contract is to protect our rights

I don't know if I necessarily buy into social contract theory, but for the sake of argument assume that I do.

The idea is that we all agree to give up some of our rights to protect other rights. Social Security is not in the business of protecting our rights, not in the sense that the police protect us from harm from other individuals, the military and militia protect us from foreign invasion, and the courts protect us from the state.

What is social security protecting us from? Being poor? But did we ever have the right not to be poor to begin with?

Now I agree, we need to choose our battles and dismantling social security shouldn't be close to the top of our list. Much bigger fish to fry. But I dont' accept that Social Security is inextricably a piece of the American social contract.

I am with that it is worth

I am with that it is worth considering what is more and less important and to order that which is most pressing.

You don't have to agree with the social contract in the least, but that doesn't meant you or I or anyone else can expect to ignore the rules that come out of such a contract. We can try, I could not pay my taxes, etc., but we are certainly taking a great risk, that is unless we can get people to act in the same manner and thus change the rules.

Anyway, the idea of the social contract is all about justice. In nature their is no justice. No other creatures come up is elaborate rules about what is just and unjust. Its one of the things that biologists say makes humans different.

So society has laws that reflect its ideas on justice, such that one can own private property and is justified in protecting it. These laws are not natural laws, like gravity, but creations of our human minds, that is why others animals have no choice but to act in accordance with the laws of gravity or thermodynamics, but laws governing what is just and unjust has no control over them.

So...as you stated the with social contract we believe it is just to give our absolute right to act as we please in exchange for a human system that protects us. Currently we agree that we give up our right to be a slave, to work under a certain age, to work in certain conditions, etc.

Is it just that that state, the agent of society acts to restrict our free choices in this manner? Shouldn't we be able to be slaves if we choose? To work in a factory at the age of five? To work in conditions that are toxic to our minds and bodies?

Such is the same with SS or Medicare, should we be able to choose to pay into a retirement fund and medical fund or is it just that the state doesn't allow us to make that choose?

Other nations/societies have decided such a restriction is justified, such as France. This is independent of it such a program will work or not. The American society needs to BOTH decide if such a restriction of liberty is just AND how to have a program, if we decide on a program, that works.