Private pay shrinks to historic lows as gov't payouts rise

With corporate executives making multimillion dollar salaries and collecting huge bonuses--even when their companies don't show a profit and/or lose money--the fact that private employees are being paid less does not even come close to being a surprise. The dicks at the top get all their money and the govt lets them do it, leaving the workers of this country with debts to cover their expenses. How do we change that? Because we really do have to change that!

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

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.

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.