Friday, January 18, 2013

The Wages of being unemployed are soaring

From the mid-17th century to the late 20th century, the American economy grew roughly 3.5% a year. That growth rate has since declined significantly. When the final figures are in for 2012, the annual rate of real output growth for the first dozen years of this century is likely to be about 1.81%. 
What accounts for the slowdown? An important part of the answer is simple: Americans aren't working as much today. And this trend reflects more than the recession and sluggish economy of the past few years. 
[...] 
Why are Americans working less? While there are a number of factors, the phenomenon is due mainly to a variety of public policies that have reduced the incentives to be employed. These policies include:
  • Food stamps - 26.3 million beneficiaries in 2007....47.5 million in 2012. 
  • Social Security disability payments - 6.5 million drawing disability by 2005....8.6 million today. 

Read the whole story HERE.

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