• 41.9% of personal income comes from private wages and salaries
• 17.9%of personal income comes from government programs source

• » What this means: Simply put, it’s an unsustainable trend. The government raises money through taxes on wages and salaries, and with many people out of work and benefits making up a larger share of personal income, the government is on the hook for more of people’s collective personal incomes. Part of this, yes, is due to the stimulus. Once the economy gets back in tip-top shape, will the numbers go up? Maybe. But the numbers were going down even before the recession due to the increase in benefits.

Posted by Ernie Smith • Permalink