Nearly Half of U.S. Lives in Household Receiving Government Benefit

Wall Street Journal ^ | 10/05/2011 | Sara Murray

[iowamark]

Families were more dependent on government programs than ever last year.

Nearly half, 48.5%, of the population lived in a household that received some type of government benefit in the first quarter of 2010, according to Census data. Those numbers have risen since the middle of the recession when 44.4% lived households receiving benefits in the third quarter of 2008.

The share of people relying on government benefits has reached a historic high, in large part from the deep recession and meager recovery, but also because of the expansion of government programs over the years. (See a timeline on the history of government benefits programs here.)

Means-tested programs, designed to help the needy, accounted for the largest share of recipients last year. Some 34.2% of Americans lived in a household that received benefits such as food stamps, subsidized housing, cash welfare or Medicaid (the federal-state health care program for the poor).

Another 14.5% lived in homes where someone was on Medicare (the health care program for the elderly). Nearly 16% lived in households receiving Social Security.

High unemployment and increased reliance on government programs has also shrunk the nation’s share of taxpayers. Some 46.4% of households will pay no federal income tax this year, according to the nonpartisan Tax Policy Center. That’s up from 39.9% in 2007, the year the recession began.

[ops33]

Same here, I earned both my military retirement and VA disability. Does these figures include us?

[Gumdrop]

I guess I am in that bunch - since I am now receiving SS checks. Of course, I paid FICA taxes for about 48 years or so-from age 18 to age 67.

All those years of work only made me a stronger conservative. I do not think 50% is the true marker for tipping the scales. It’s closer to 55-60%, since you have to have over 55% of the folks literally without any other income before they would all be automatically voting Democratic. Yikes, that’s getting awefully close now, isn’t it?

[LiteKeeper]

In the minds of far too many, the answer is yes.

[Sgt_Schultze]

I was saying that Obama prefers more people to be dependent on government than before. To Obie, until every American relies on government, his job is incomplete.

[Bon of Babble]

LoL, Don't you remember-- the economy is driven by the unemployed and their unemployment checks!! Ask economic expert Nancy Pelosi!! Losing your job is gooood for the economy!! Pelosi: Unemployment Benefits Biggest Stimulus for Economy

[Bon of Babble]

Excellent post and would that more understood this simple concept which you explained so well and clearly. Too many today depend ONLY on SS OR a pension fund that is vastly underfunded - I should know, my own teacher's retirement fund is set to run out of money by 2017 at the latest. I live in California so there IS no state money to cover the shortfall. But then, I have understood this for years and made sure I was diversified into other things. SO MANY teachers have NOTHING or have foolishly cashed in their 403b's (to buy new cars, to take vacations and other such stupid things). I heard a lecture once on the Internet directed at a black group about how SS hurts them specifically because the average life span of blacks is 65 and, as you stated, SS does NOT become part of your estate as does a 401 or 403 that does and can be passed down to your heirs. Or, as my dear old dad used to say: The government Don't pay interest! SS is a PONZI scheme, there IS no lockbox and those who depend on it solely will be in for a world of hurt. Privatizing even a tiny percentage of it was the correct call, before it was shot down by the idiot media and duplicitous pols trying to scare old people for votes.