A third of the U.S. population receives government money. What should we sacrifice?
Posted: 03.10.2011 at 3:42 PM
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A recent report says government funding make up one-third of U.S. wages.

CNBC says social welfare benefits account for 35% of wages and salaries in America.

Experts say the recession has a lot to do with that, but they also warn the growing trend could cause hardships in the future.

In 2011, one out of three people getting paid in the U.S. is getting their money from tax payers.

That's up from one in five in 2000 and one in 10 in 1960.

Experts say, the rebounding economy will cause fewer people to be on assistance. However, Midland's Mackinac Center for Public Policy says the system is still broken.

Michael LaFaive, director of fiscal policy for the Mackinac Center says, "The bad news is, it's not going to be shaved back enough to accommodate growing in social security payments for a group of people that are starting to retire in mass, the baby boomers."

LaFaive says, while many in the younger generations are trying to save money with funding their own insurance plans and retirement accounts, they're fighting an uphill battle of those no longer working.

"The problem is, at the ballot box, they are overwhelmed be a large number of voters who are militant about one thing and that's keeping the gravy rolling in," says LaFaive.

That goes for most americans. A recent Wall Street Journal/NBC News poll showed less than 25% of Americans supported making cuts to social security or medicare.

"Healthcare is the single biggest reason you've seen that large increase in transfer payments from one group of people to another," says LaFaive.

However, the Michigan Department of Human Services says social programs have economic benefits, like food assistance.

It says it's good for farmers, distributors, grocery stores, and jobs.

"Just this one program could put an estimated $16-million in additional direct food dollars into Michigan communities each month and nearly $200-million into communities each year," reports the Michigan DHS website.

The United States Department of Agriculture says every $5 in food benefits generates about $9.20 in economic activity in communities.

Experts say, while the amount of people on public funds increases, the situation is still better than the amount of people on welfare in Europe.

In the United Kingdom, social welfare benefits make up 44% of wages and salaries.

The Mackinac Center says if public employees were to reduce their benefits packages to the private sector's numbers, it would save the State of Michigan $5.7-billion a year.