Subj : Welfare state To : ALL From : BOB KLAHN Date : Sun Mar 13 2011 04:33:54 JB> This should make the Dems happy..... and the rest of us JB> afraid... It should make you afraid, because it's your fault. Note that they conflate social welfare with welfare. They define social welfare as anything that isn't military. They also declare a conflict between increasing earned wages and decreasing welfare, not even coming up with the idea that the way to reduce welfare *IS* to increase earned wages. They do mention the economic problems as a contributor to the problem, but fail to make it clear that the recession, following 8 years of Bush league economics, is the actual cause of the problem. We democrats want to end welfare, by having enough jobs to employ all who need a job. Do that and welfare becomes moot, except for the very few who are so severly handicapped they will never be able to work. Oh, and they strongly imply social security is welfare, and a major cause of the problem. JB> ======================================== http://www.cnbc.com/id/41969508 JB> Welfare State: Handouts Make Up One-Third of U.S. Wages JB> Published: Tuesday, 8 Mar 2011 | 3:59 PM ET JB> By: John Melloy JB> Executive Producer, Fast Money JB> Government payouts, including Social Security, Medicare and JB> unemployment insurance—make up more than a third of total JB> wages and salaries of the U.S. population, a record figure JB> that will only increase if action isn’t taken before the JB> majority of Baby Boomers enter retirement. JB> JB> Even as the economy has recovered, social welfare benefits JB> make up 35 percent of wages and salaries this year, up from JB> 21 percent in 2000 and 10 percent in 1960, according to JB> TrimTabs Investment Research using Bureau of Economic JB> Analysis data. JB> “The U.S. economy has become alarmingly dependent on JB> government stimulus,” said Madeline Schnapp, director of JB> Macroeconomic Research at TrimTabs, in a note to clients. JB> “Consumption supported by wages and salaries is a much JB> stronger foundation for economic growth than consumption JB> based on social welfare benefits.” JB> The economist gives the country two stark choices. In order JB> to get welfare back to its pre-recession ratio of 26 JB> percent of pay, “either wages and salaries would have to JB> increase $2.3 trillion, or 35 percent, to $8.8 trillion, or JB> social welfare benefits would have to decline $500 billion, JB> or 23 percent, to $1.7 trillion,” she said. JB> Last month, the Republican-led House of Representatives JB> passed a $61 billion federal spending cut, but Senate JB> Democratic leaders and the White House made it clear that JB> had no chance of becoming law. Short-term resolutions JB> passed have averted a government shutdown that could have JB> occurred this month, as Vice President Biden leads JB> negotiations with Republican leaders on some sort of JB> long-term compromise. JB> Smart Traders Taking Profits In Oil? JB> Three ECB Rate Hikes, Too Much of a Good Thing for Euro? JB> SLIDESHOW: Fast Money’s ‘Beat China’ Playbook JB> “You’ve got to cut back government spending and the JB> Republicans will run on this platform leading up to next JB> year’s election,” said Joe Terranova, Chief Market JB> Strategist for Virtus Investment Partners and a “Fast JB> Money” trader. JB> JB> Terranova noted some sort of opt out for social security or JB> even raising the retirement age. JB> But the country may not be ready for these tough choices, JB> even though economists like Schnapp say something will have JB> to be done to avoid a significant economic crisis. JB> A Wall Street Journal/NBC News poll released last week JB> showed that less than a quarter of Americans supported JB> making cuts to Social Security or Medicare in order to JB> reign in the mounting budget deficit. JB> Those poll numbers may be skewed by a demographic shift the JB> likes of which the nation has never seen. Only this year JB> has the first round of baby boomers begun collecting JB> Medicare benefits—and here comes 78 million more. JB> Social welfare benefits have increased by $514 billion over JB> the last two years, according to TrimTabs figures, in part JB> because of measures implemented to fight the financial JB> crisis. Government spending normally takes on a larger part JB> of the spending pie during economic calamities but how can JB> the country change this make-up with the root of the crisis JB> (housing) still on shaky ground, benchmark interest rates JB> already cut to zero, and a demographic shift that calls for JB> an increase in subsidies? JB> At the very least, we can take solace in the fact that JB> we’re not quite at the state welfare levels of Europe. In JB> the U.K., social welfare benefits make up 44 percent of JB> wages and salaries, according to TrimTabs’ Schnapp. JB> “No matter how bad the situation is in the US, we stand far JB> better on these issues (debt, demographics, JB> entrepreneurship) than other countries,” said Steve Cortes JB> of Veracruz Research. “On a relative basis, America remains JB> the world leader and, as such, will also remain the world's JB> reserve currency.” JB> --- PCBoard (R) v15.3/M 10 JB> * Origin: (1:226/600) BOB KLAHN bob.klahn@sev.org http://home.toltbbs.com/bobklahn .... The problem is jobs... the solution is jobs... --- Via Silver Xpress V4.5/P [Reg] * Origin: Since 1991 And Were Still Here! DOCSPLACE.TZO.COM (1:123/140) .