Bad News: Government Dependence Hits All Time High

Posted: Oct 06, 2011 8:08 AM

Unemployment and poverty have skyrocketed under President Obama's watch and now, according to the Wall Street Journal and new Census data, at least one person in nearly half of American households receive some kind of government benefit.

Families were more dependent on government programs than ever last year.

Nearly half, 48.5%, of the population lived in a household that received some type of government benefit in the first quarter of 2010, according to Census data. Those numbers have risen since the middle of the recession when 44.4% lived households receiving benefits in the third quarter of 2008.

The share of people relying on government benefits has reached a historic high, in large part from the deep recession and meager recovery, but also because of the expansion of government programs over the years. (See a timeline on the history of government benefits programs here.)

Means-tested programs, designed to help the needy, accounted for the largest share of recipients last year. Some 34.2% of Americans lived in a household that received benefits such as food stamps, subsidized housing, cash welfare or Medicaid (the federal-state health care program for the poor).

Another 14.5% lived in homes where someone was on Medicare (the health care program for the elderly). Nearly 16% lived in households receiving Social Security.

The article also mentioned high unemployment rates have resulted in less taxpayers, which has resulted in an even greater strain on the government entitlement system.