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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: LindyBill who wrote (365933)	5/25/2010 1:22:23 AM
From: goldworldnet	3 Recommendations Respond to of 793914

It's just too easy to spend other people's money. Like many things, government isn't likely to change until it has to. * * *

To: LindyBill who wrote (365933)	5/25/2010 1:59:24 AM
From: Elroy	1 Recommendation Read Replies (1) \| Respond to of 793914

The economic collapse of Greece is a wake-up call. The unsustainable combination of a bloated public bureaucracy, high deficit spending and unfunded pension obligations busted Greece's government bubble. Now the birthplace of modern democracy is on the brink of becoming a failed state. That's a bit of an extreme conclusion. Cut government pensions and salaries by 20% across the board, and their budget is probably balanced. What makes government employees think that they are entitled to be taken care of for the rest of their lives? Restaurant employees, construction workers, cleaners, store owners, and most other workers don't get taken care of post-retirement, why should the least productive and least necessary (government employees) get paid once they are done working?

To: LindyBill who wrote (365933)	5/25/2010 12:49:36 PM
From: KLP	Respond to of 793914

Private Pay lowest in US History, Government Pay Soars!!!! Private pay shrinks to historic lows Updated 1h 44m ago By Dennis Cauchon, 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 trend is not sustainable, says University of Michigan economist Donald Grimes. Reason: The federal government depends on private wages to generate income taxes to pay for its ever-more-e xpensive programs. Government-generated income is taxed at lower rates or not at all, he says. "This is really important," Grimes says. START YOUR OWN: Older workers become entrepreneurs SALARY WIZARD: What are you worth? JOBS OUTLOOK: Latest data for all states, 384 metros RECOVERY WATCH: Tracking the economy The recession has erased 8 million private jobs. Even before the downturn, private wages were eroding because of the substitution of health and pension benefits for taxable salaries. The Bureau of Economic Analysis reports that individuals received income from all sources — wages, investments, food stamps, etc. — at a $12.2 trillion annual rate in the first quarter. Key shifts in income this year: • Private wages. A record-low 41.9% of the nation's personal income came from private wages and salaries in the first quarter, down from 44.6% when the recession began in December 2007. •Government benefits. Individuals got 17.9% of their income from government programs in the first quarter, up from 14.2% when the recession started. Programs for the elderly, the poor and the unemployed all grew in cost and importance. An additional 9.8% of personal income was paid as wages to government employees. The shift in income shows that the federal government's stimulus efforts have been effective, says Paul Van de Water, an economist at the liberal Center on Budget and Policy Priorities. "It's the system working as it should," Van de Water says. Government is stimulating growth and helping people in need, he says. As the economy recovers, private wages will rebound, he says. Economist Veronique de Rugy of the free-market Mercatus Center at George Mason University says the riots in Greece over cutting benefits to close a huge budget deficit are a warning about unsustainable income programs. 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 usatoday.com