Social Benefits Nation

Today’s chart of the day shows U.S. social benefits as a percentage of real disposable income, which comes from Lance Roberts’ must-read piece “Sex, Money & Happiness.” As U.S. economic vibrancy continues to erode throughout the decades and debt saturates practically every sector of our society, American citizens have become increasingly reliant on government transfer payments to survive. As recently as the 1970s, government transfer payments amounted to less than 5 percent of real disposable incomes, but now amount to nearly 1 in 4 dollars worth of real disposable income! How can this situation be sustainable considering how much debt the U.S. government is in, at all levels? The answer is simple: it’s not.


David Stockman's Contra Corner is the only place where mainstream delusions and cant about the Warfare State, the Bailout State, Bubble Finance and Beltway Banditry are ripped, refuted and rebuked. Subscribe now to receive David Stockman’s latest posts by email each day as well as his model portfolio, Lee Adler’s Daily Data Dive and David’s personally curated insights and analysis from leading contrarian thinkers.