Private pay shrinks to historic lows

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.

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Change we can believe in!

I guess the plan to turn the U.S. into a redistributive economy actually worked. Unconstitutional, and a danger to liberty. Something drastic must be done.

I wonder if that is directly related to the fact that there is a line of hundreds willing to take your job for half the money.....

Originally posted by Zaanny
I wonder if that is directly related to the fact that there is a line of hundreds willing to take your job for half the money.....

Well most private companies that were capable of moving have already made the move to better pasteurs outside of the US. Many businesses knew that as soon Obumbus took over, he would be bad for business so they had downsized early and looked to cut output even further.

Those unemployed are a direct result of this administrations stance on taxing small businesses. Mom & Pop shops now have to worry about new taxes and coverage for employees or they will not remain open. In this administration eye, you are only considered small business if you have less than 10employees to recieve the maximum credit. My parents restaurant had 19 employees and that was the minimum we could keep & still stay afloat. I am glad they got out of it before all of this SHTF.

Public sector jobs & pay increased since Obama took office. Its kind of like buying the vote, if you are employed by the public sector then your vested intrest is in the continuation of the current style of government otherwise you might be unemployed. Those same public servants would convince their relatives to support this administration as it is their vested interest to stay employed. This a house of cards it will crash once their is no money left to provide for these employees. Just look at the state of Illinois and Michigan.

I will gurantee that public sector will continue to grow while this administration is in control.

No shocker.

I'm still trying to figure out how in 1940 the average house cost only three years salary. Now most folks are struggling to get one paid off in 30 years?
WTF is that all about.

I went into my bosses office with a historical income/expenses chart and asked for a standard of living adjustment to my pay. Laughs abounds.

Unless I'm mistaken it was a lot harder to build a house in 1940 than it is today. So shouldnt they be comparatively less expensive?

The same happened to automobiles. Back then they less expensive relative to the dollars worth and much more difficult to build. Now robots slap them together in 20 minutes but cost 5 times as much.

I used to think the old folks were full of it with their "back in my day" ramblings but they know what's up. Our dollar isnt worth # and we're working harder for it than ever before.

Originally posted by thisguyrighthere
No shocker.

I'm still trying to figure out how in 1940 the average house cost only three years salary. Now most folks are struggling to get one paid off in 30 years?
WTF is that all about.

I went into my bosses office with a historical income/expenses chart and asked for a standard of living adjustment to my pay. Laughs abounds.

Unless I'm mistaken it was a lot harder to build a house in 1940 than it is today. So shouldnt they be comparatively less expensive?

The same happened to automobiles. Back then they less expensive relative to the dollars worth and much more difficult to build. Now robots slap them together in 20 minutes but cost 5 times as much.

I used to think the old folks were full of it with their "back in my day" ramblings but they know what's up. Our dollar isnt worth # and we're working harder for it than ever before.

Well inflation is one reason. Though typically if you try to get approved for a mortgage on a house, the typical allowance (dependant on your credit and money down) will be roughly equivalent to 3-4 years of salary. Just because it cost 3 years of salary doesn't mean you pay it in that time period.

Just sad that public sectors are being increased in the same time period that public benefits and pensions are bringing European nations down like dominos. So long to Mom'n'Pop companies and the American dream =(

Originally posted by thisguyrighthere
No shocker.

I'm still trying to figure out how in 1940 the average house cost only three years salary. Now most folks are struggling to get one paid off in 30 years?
WTF is that all about.

I went into my bosses office with a historical income/expenses chart and asked for a standard of living adjustment to my pay. Laughs abounds.

Unless I'm mistaken it was a lot harder to build a house in 1940 than it is today. So shouldnt they be comparatively less expensive?

The same happened to automobiles. Back then they less expensive relative to the dollars worth and much more difficult to build. Now robots slap them together in 20 minutes but cost 5 times as much.

I used to think the old folks were full of it with their "back in my day" ramblings but they know what's up. Our dollar isnt worth # and we're working harder for it than ever before.

Basically. My professor who is in his 60s said the exact same thing.

reply to post by thisguyrighthere


It has everything to do with our easy credit economy.

Back then, it was harder to secure a loan with most people saving for years to buy a house. This made demand lower and prices lower. With the influx of easy credit (from credit cards to loans), you have now a lot of people in the market to buy a house, that otherwise would not be, driving demand and prices up. This goes for cars too.

Essentially over the last 50-60 years, the easy credit falsely raised demand, falsely raising the cost of everything. The entire economy has essentially been proped up by credit since we left the gold standard.

reply to post by brainwrek


It''s mainly due to inflation. As we devalue our currency by constantly printing money our income is worth less. The average rate of inflation has been close to 7%. The past few years it's been higher. In most state jobs you would get a 3.5% cost of living increase and a 3.5% bonus based on performance. In the private sector you will most likely get squat.

As the price of gas keeps jumping shipping companies keep raising their rates to cover their costs. This gets passed to the companies they do business with, and then it gets passed onto the consumer.

Credit card companies have been encouraging massive credit card debt over the last few decades then have slowly cranked up the interest rates.

With home and auto loans the interest rates have remained relatively the same but the initial cost has gone up, and the term limits have gotten longer.

Utility prices are raised all the time now we have added taxes on them, and new taxes from the government for anything they deem necessary.

Most people aren't in the position to take on a mortgage so they pay a big chunk of their income to someone else for rent.

With ever compounding debt, the constant devaluation of our currency, and dead end jobs that pay minimum wage no wonder so many Americans are living in poverty. I won't even start on unemployment.

We have to stop the downward spiral of the money trap and ask ourselves how are we going to get out of this mess?

In the recent future I am going to start a thread on what can be done to save ourselves from the slavery of paper currencies.