Apparently, our bailout government is making the US a full-fledged bailout society. Â They’re in record-setting mode, as only 41.9% of the nation’s personal income came from private wages and salaries last quarter — the lowest amount ever.
Yes, that means that 58.1% of personal income is coming from somewhere other than private wages and salaries, largely meaning — the government, or some extension of it.
The trend is not sustainable, saysÂ University of Michigan economist Donald Grimes. Reason: The federal government depends on private wages to generate income taxes to pay for its ever-more-expensive programs. Government-generated income is taxed at lower rates or not at all, he says. “This is really important,” Grimes says.
I think David Henderson of the Hoover Institution puts it best:
“People are paid for being rather than for producing.”
And that, is a problem.