Chilling Economic News

I guess I already knew this was happening. I knew beforehand that it was inevitable with the policies put in place. But seeing it in print was still depressing and scary, nonetheless. USA Today:

Paychecks from private business shrank to their smallest share of personal income in U.S. history during the first quarter of this year, a USA TODAY analysis of government data finds.

At the same time, government-provided benefits — from Social Security, unemployment insurance, food stamps and other programs — rose to a record high during the first three months of 2010.

Those records reflect a long-term trend accelerated by the recession and the federal stimulus program to counteract the downturn. The result is a major shift in the source of personal income from private wages to government programs.

The last paragraph of the piece sums things up perfectly (emphasis mine):

Economist David Henderson of the conservative Hoover Institution says a shift from private wages to government benefits saps the economy of dynamism. “People are paid for being rather than for producing,” he says.

Those on the left, especially the Obama apologists, can say the tea party movement and the public opinion polls reflect some outbreak of racism or mob mentality, but they are either idiots or liars. It is not difficult to see why those in the country are upset and outraged by what they see happening to their society and their economy. The cause and effect, if we didn’t already know it instinctively, becomes clearer through empirical evidence every day. (Hat tip to Kim for pointing me to the article.)

(Crossposted at Riehl World View where I am guest blogging for Dan Riehl.)

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