Throughout our history, politicians and pundits have often said “America is at a crossroads.” Sometimes it was true, as in the final convulsive years leading up to the Civil War when we decided to end slavery. New data on personal income, taxes and dependency makes clear that the country is again at a historic crossroad and another form of slavery is the central issue. There are no iron chains involved this time, but dependence on government for economic sustenance is no less an enslavement.
Based on Bureau of Economic Analysis data, USA Today reported Tuesday that the portion of personal income received from private sector paychecks declined to 41.9 percent, its lowest point ever, during the first quarter of 2010. The figure was 44.6 percent in December 2007 at the outset of the current recession and 47.6 percent in the first quarter of 2000. By contrast, the personal income received from government programs climbed to 17.9 percent. Add another 9.8 percent for government employee compensation and 27.7 percent of all personal income is derived from government sources. (The remaining 30.1 percent of personal income results from small-business proprietor profits, farm profits, privately funded pensions, investment sales and dividends, and insurance annuities.)
