Fed programs supply $2 of $10 in income

In 2010, a new report says money through jobless benefits, food stamps, Social Security and disability accounted for nearly $2 of every $10 Americans received.  The Moody’s Analytics report also said a lot of those dollars would disappear by the end of this year with the expiration of extended benefits meant to help people cope with the lingering effects of the recession.

Moody’s Analytics estimates $37 billion will be extracted  from the nation’s wallets this year, slightly less than spending cuts Congress enacted to keep the government financed through September to avert a shutdown.

“If we don’t get more job growth and gains in wages and salaries, then consumers just aren’t going to have the firepower to spen, and the economy is going to weaken,” said Mark Zandi, chief economist of Moody’s Analytics.  Upi

And growth of jobs still remains tough with roughly 4.6 unemployed workers for every opening, the Labor Department said. Friday’s unemployment report showed employers added only 18,000 jobs in June.  Although some of the growth was in Social Security and disability benefits, the majority of federal payments went to people still suffering from the recession.

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1 Comment

  1. Janet

    Food stamps should be for those who lost their jobs, not those who are working, and know how to work the system. The lady in question in this article is working, andlives with her mother and has a 12 year old son. Okay she fails to mention any other aid she is getting for that son, or what income her mother has coming in. The Obamanut just added more to the government will take care of you plans, with money running out. And also, we can’t forget how all the illegals are bleeding us dry. Boot them off, and out of the country, and just maybe there would be more jobs and aid to go around, and emplouers would then be forced to pay higher wages.

    USA becomes Food Stamp Nation but is it sustainable?

    Genna Saucedo supervises cashiers at a Wal-Mart in Pico Rivera, California, but her wages aren’t enough to feed herself and her 12-year-old son.

    http://www.reuters.com/article/2011/08/22/us-usa-poverty-foodstamps-idUSTRE77L45Z20110822

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