Private Pay Shrinks to Historic Lows - Obama's Success!

President Obama shows us how large the private sector will become under his administration.

From USATODAY.com:

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.

You would expect that the government bailout would produce this kind of imbalance, given the current statist philosophy that governments must siphon the money from the rich to give to the poor. Yet despite the giganormous spending package, the ineffective bailout, the black hole budget, and the resultant trillions in new deficit, all we seem to have accomplished is...a poor economy with nothing to drive it toward recovery.

Why is the current means of handling the economic crisis a poor idea? Even the writers at USA TODAY can partially figure this one out:

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.

The solution to this equation isn't to tax the tax money as Grimes suggests. The solution is to cut government spending and stimulate private sector growth.

Yet in the meantime, the United States is dragged closer and closer to the abyss by statist power-mongers in Congress, led by an increasingly incompetent, and irrelevant, President.