Private Pay Shrinks to Historical Lows

[volinbham]

Oh boy

Private pay shrinks to historic lows as gov't payouts rise - USATODAY.com

PAY SCALE

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.

 

[MG1968]

LG will be here shortly to explain how this is a good thing.

 

[lumberjack4]

This is great news... If you're employed by the feds.

 

[utvolpj]

I was under the impression that the virtuous wedge went the other direction

 

[tigervol9802]

LG will be here shortly to explain how this is a good thing.

Because this keeps the decisions away from the racist Glenn Beck followers and TPers of the world and allows equal opportunity to all.

 

[droski]

i bet if we looked at gov't wages they'd at least be matching inflation over the past 10 years.

 

[salutethehill]

This is great news... If you're employed by the feds.

In the grand scheme of things...no it's not.

 

[lumberjack4]

In the grand scheme of things...no it's not.

No certainly not for the rest of us. But I'm sure the moochers are loving it.
Posted via VolNation Mobile

 

[IPorange]

No certainly not for the rest of us. But I'm sure the moochers are loving it.
Posted via VolNation Mobile

it's not even good news if you are in the public sector.

 

[salutethehill]

No certainly not for the rest of us. But I'm sure the moochers are loving it.
Posted via VolNation Mobile

True statement from the article:

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-expensive programs. Government-generated income is taxed at lower rates or not at all, he says. "This is really important," Grimes says.

No income taxes = no bank for the government, either. Glad I have a garden.

 

[IPorange]

True statement from the article:

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-expensive programs. Government-generated income is taxed at lower rates or not at all, he says. "This is really important," Grimes says.

No income taxes = no bank for the government, either. Glad I have a garden.

If you think about it, government wages are not really taxed at all. If I pay you five dollars, but say you have to give me back on, then I am really paying you four dollars.

 

[droski]

If you think about it, government wages are not really taxed at all. If I pay you five dollars, but say you have to give me back on, then I am really paying you four dollars.

the feds aren't nearly as overpaying as much as on the state and local level. basically that is transfering wealth from stong public union states like california and illinois to the federal govt through the income tax.

 

[Velo Vol]

Unemployed people don't earn much private pay.

Interestingly, that figure had already dropped 3% before the recession even started (compared to 2000).

 

[volinbham]

Unemployment is not at historic levels by a long shot but % of private pay is. That tells you something about the "safety net".

 

[rjd970]

Being a DoD employee working for a private defense contractor, I have an opinion on this, but I will keep it to myself in case anybody knows me. Don't want to disturb those that pay the bills. Needless to say though, the difference in pay doesn't reflect quality of workers.