The facts, as laid out by the Wall Street Journal:
Half of U.S. Lives in Household Getting BenefitsThere are those who demand that we raise taxes to pay for all this. But who to tax? The pool of eligible candidates is shrinking fast. And the more we tax them the fewer there seem to be. Those at the top? The more we try to punish them the more Eduardo Saverin stories we'll read.
By Phil Izzo
49.1%: Percent of the population that lives in a household where at least one member received some type of government benefit in the first quarter of 2011.
Cutting government spending is no easy task, and it’s made more complicated by recent Census Bureau data showing that nearly half of the people in the U.S. live in a household that receives at least one government benefit, and many likely received more than one.
The 49.1% of the population in a household that gets benefits is up from 30% in the early 1980s and 44.4% as recently as the third quarter of 2008.
The increase in recent years is likely due in large part to the lingering effects of the recession. As of early 2011, 15% of people lived in a household that received food stamps, 26% had someone enrolled in Medicaid and 2% had a member receiving unemployment benefits. Families doubling up to save money or pool expenses also is likely leading to more multigenerational households. But even without the effects of the recession, there would be a larger reliance on government.
The Census data show that 16% of the population lives in a household where at least one member receives Social Security and 15% receive or live with someone who gets Medicare. There is likely a lot of overlap, since Social Security and Medicare tend to go hand in hand, but those percentages also are likely to increase as the Baby Boom generation ages.
So we're left with that overworked printing press that churns out money by the megaton, printing cash backed up with nothing more than a mountain of I.O.U. s and a warm Obama smile.
Here's the stark reality: This won't go on for long.
Something's gotta give.
Something gonna give.