Grand Recovery Myth: Transfer payments are 22 percent of household income

07-08-2011 • MyBudget360.com

Transfer payments include welfare (financial aid), social security, and other subsidies by the government to certain businesses (i.e., ethanol). I was amazed to see the above chart. Government transfers now make up 22% of household income, a record amount. Keep in mind this is happening at a time when the economy is supposedly recovering. What the above chart is telling us is that more and more people unable to find work in the regular economy are depending on a variety of government payments. Unlike the banks however, who needed taxpayer bailouts to continue financing their yachts and gambling lifestyle many of the above are using the funds to pay for food and basic necessities. The fact that we are reaching a debt ceiling is troubling and we are clearly down an unsupportable road. Bottom line is the money has run out a long time ago and all of this is now being financed on debt.