Following the release of the latest Personal Spending and Income data, Wall Street was focused on the modest jump in personal spending, which was actually dwarfed by a record increase in personal income, for the month of President Biden’s latest $1.9 trillion stimulus.
But what was even more shocking was that the data showed how much more the population is now depending on the government.
The Personal Current Transfer payments are government derived income like unemployment checks. In March, this number increased to a jaw-dropping $8.1 trillion annualized, which was double the $4.1 trillion of February.
This means that removing the $8.1 trillion increase in government transfers, personal income excluding government relief payments would be unchanged from last year.
To put it bluntly, a third of all personal income, or 33.8 percent is now sourced by the government!
Looking at this in perspective, the 1950s had a transfer payment around 7%. This number increased into the low teens around the mid-1970s.
The number then increased again after the financial crisis of 2008/2009, going to the high teens. And now, the covid pandemic has officially sent the number to a record 34%!
This is how creeping socialism comes in. First with free money, making you dependent on the income, then suddenly there are “conditions” attached to the payments.
Democrats must be very happy about this!
Author: Steven Sinclaire