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Animation: America's Metamorphosis To A Welfare State

Tyler Durden's picture


Still confused why there are those who call America the USSA? Don't be. As the following animation from the NYT so vividly shows, government benefits across the US have nearly tripled from a modest 7.8% of all personal income in 1969 to a 'European' 17.6% in 2009. And this before Obama went to town (as a reminder total debt has risen by over $4 trillion under Obama - a significant portion of that has gone to fund social welfare). Thus, we are confident that as of this writing, the government accounts for at least 20% and possibly as high as a quarter of all personal income. One can use any word to describe that transition depending on one's personal political preferences, except for one: "sustainable."

Source: NYT


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Sun, 02/26/2012 - 16:42 | 2198574 adr
adr's picture

I think they ae under-representing the true numbers. I know for a fact that government transfers account for much more than 2% of the income in Cleveland. 90% of East Cleveland residents are on some sort of government program. Majorities in Cleveland Heights, South Euclid, University Heights , and City of Cleveland as well.

I would put it as high as 90% of the income of those areas comes in the form of government transfers. Take a look at the map of Michigan. Detroit should be a lot redder than it shows.

Or is it for the purpose of the NYT article government tranfsers to blacks isn't considered income. Those are repirations, and therefore not counted.

Sun, 02/26/2012 - 16:55 | 2198609 bob_dabolina
bob_dabolina's picture

Re-read the article.

The chart Tyler presented was from 2009. Obama has gone apeshit since.

Sun, 02/26/2012 - 16:49 | 2198589 Seasmoke
Seasmoke's picture

Hate to see what the Real time map of 2012 looks like !!!

Sun, 02/26/2012 - 16:54 | 2198604 Snakeeyes
Snakeeyes's picture

Throw housing refi and housing subsidies into the mix and we have a welfare state disaster on our hands.

Sun, 02/26/2012 - 17:36 | 2198697 jack stephan
jack stephan's picture

That Guy: There are two kinds of people: sheep and sharks. Anyone who is a sheep is fired. Who's a sheep?
Dr. Zoidberg: Errr, excuse me... which is the one people like to hug?
That Guy: Gutsy question. You're a shark. Sharks are winners, and they don't look back because they don't have necks. Necks are for sheep. I am proud to be the shepard of this herd of sharks.

Sun, 02/26/2012 - 17:57 | 2198730 Poor Grogman
Poor Grogman's picture

There is a great demand for agricultural labour, even now.
It's just that with farm gate prices so low relative to minimum wages few farmers can afford the labour units that they would like.
As oil gets even more expensive and farm input costs rise further, this dam will have to break.

I see a drift back to the land with more people getting their hands dirty, helping out with basic food production. This has to happen if we are to maintain food production in a more expensive oil environment.

To test the theory just offer to help a farmer or rancher and see the reaction you get!

Sun, 02/26/2012 - 23:56 | 2199581 FeralSerf
FeralSerf's picture

The next likely innovation in agriculture is robotically controlled, GPS guided farming equipment without an operator.  That should make a dent in the agriculture labor problem and the unemployment numbers too.  Where's a Mexican going to work?

Mon, 02/27/2012 - 02:47 | 2199866 Lednbrass
Lednbrass's picture

That would only work for a small number of crops like corn and soybeans. You cant harvest melons and tomatos with something like that, not to mention that it would be way to expensive for any but the large subsidized corporate farmers.

Sun, 02/26/2012 - 18:00 | 2198735 headless blogger
headless blogger's picture

These systems were designed to placate the masses while the elite's slowly installed their World government. It's working and my bets in short term are on the Elite; they will continue to win for a long time to come....well past our life times. Sometime in the future the tables will be turned on the Elite, because what they are designing will only succeed without them in the picture....They don't realize that yet.

Sun, 02/26/2012 - 18:04 | 2198747 VyseLegendaire
VyseLegendaire's picture

"One can use any word to describe that transition depending on one's personal political preferences, except for one: "sustainable."


My word of choice: Fucktasmagorical

Sun, 02/26/2012 - 18:04 | 2198748 Dermasolarapate...
Dermasolarapaterraphatrima's picture


Sun, 02/26/2012 - 18:15 | 2198759 spinone
spinone's picture

compare with

During that same time the income share of the top 10% has gone from 32% to 50%



Sun, 02/26/2012 - 18:15 | 2198774 davood
davood's picture

America's Metamorphosis To A WARfare State

Sun, 02/26/2012 - 18:26 | 2198801 User283977
User283977's picture

The population is aging. How much of the increase is due to people getting Social Security? Those people paid into the system in good faith. 

Sun, 02/26/2012 - 18:41 | 2198826 Hugo Chavez
Hugo Chavez's picture

And if they only got out what they put in there would be no complaints from me and younger generations.

Sun, 02/26/2012 - 19:00 | 2198879 User283977
User283977's picture

Get out what they put in?.

It was NOT a voluntary investment. It was a forced contribution. It's not the people's fault that the government instead of investing the peoples retirement funds in a compounding investment program instead pocketed the money.  So no, the people that were forced to pay into the stinking system should receive a reasonable return for their forced contributions.  Something else to keep in mind is that the purchase power of the dollars that went in was worth a lot more than the purchase power of the dollars that are coming out thanks to the FED.

The whole idea of SS was just a method to grab more money for big government and then they just kicked the can down the road about the fact that at some time in the future,  it would be necessary to pay the piper.  Well its time to pay the piper.  

Don't go blaming the piper for the fact that the government made a promise to pay on the younger peoples backs. The people that are coming up for SS now were also young once, and they had to pay for the people that paid NOTHING into the system.


Sun, 02/26/2012 - 19:32 | 2198947 Hugo Chavez
Hugo Chavez's picture

Yes go ahead and rationalize a "reasonable return"

Your demand for a "reasonable return" above and beyond what you put in will be financed by your children and grandchildren. Doesnt sound too fair to me. Especially when we know our benefits will be cut in the future because it is unsustainable.

But babyboomers should not have to sacrifice at all.. after all the government can go into debt and make the children pay for it later.

The only fair system is to cut current and future benefits and raise contributions. Everyone should sacrifice, including you old people. How selfish to think old people shoyld be exempt from belt tightening.

Sun, 02/26/2012 - 18:26 | 2198803 smokeybear
smokeybear's picture


It looks like the darker areas, especially in the western states, are counties with large Native American reservations.  It could be considered rental income for being booted from their land by their Great White Brothers.

Sun, 02/26/2012 - 18:39 | 2198822 Hugo Chavez
Hugo Chavez's picture

Wow I have watched things change the last couple of years on zero hedge. I really do believe this place has been invaded by Daily Kos.

I have never seen so much support of big government welfare and transfer payments than in the last few months, or calling people who are against welfare as teabaggers when most are probably also against teabaggism too, at least the militaristic and authoritarian compinents of it.

It is sad to see so many defenders of big government and socialism appear at zero hedge.

Sun, 02/26/2012 - 19:35 | 2198951 Atomizer
Atomizer's picture



Fuck them. They cannot report comments for removal on Zero Hedge. We plan to make sure their agenda goes viral on the Internet. 


More Deadly Than War - Part 1 of 8

Mon, 02/27/2012 - 01:40 | 2199806 FeralSerf
FeralSerf's picture

If you're just looking for a Red or Blue State Club, you might have better luck at Investors Village. There is more unanimity there if you find the "right" (or left) one.

ZH's strength is it allows all sorts of social outcasts on board. Some people are just looking for a familiar tit to suck. They're likely offended and probably don't belong here.

Mon, 02/27/2012 - 02:52 | 2199868 Lednbrass
Lednbrass's picture

Yes, it has been.  There are a few people who post at DKos who simply reword many ZH stories and post them there which I suspect has drawn some who reserach the posts and the contributor "George Washington" has brought quite a few also.

I dont mind it at all, Tyler allows you to verbally kick them in the face so whats the problem?

Sun, 02/26/2012 - 18:39 | 2198825 JLee2027
JLee2027's picture

Vast under-reporting because it doesn't show Local, State, and Federal employees many of whom are "entitled" employees who perform little to no work who otherwise would be on welfare. The Government then hires "contractors" for expertise, thus doubling the expense.

The house of cards will fall hard.  The only real chance for a soft landing is to elect Ron Paul.


Sun, 02/26/2012 - 18:46 | 2198842 non_anon
non_anon's picture

one word "FAILURE!"

Sun, 02/26/2012 - 19:07 | 2198901 bb5
bb5's picture

Social Security and medicare are regular deductions from our paychecks. Self-employed at hit for over 14%---while that may be insufficient, it is hardly a hand-out like some would want you to believe. It is also not the  fault of the masses that plutocrats took that money and spent it. These programs were not initially intended to be ponzi schemes.

Sun, 02/26/2012 - 19:36 | 2198954 Hugo Chavez
Hugo Chavez's picture

Even roosevelt knew that pay as you go was a ponzi and would always require positive population growth.

Sun, 02/26/2012 - 19:30 | 2198944 uOptOut
uOptOut's picture

Demographics, Bitchez!

This graphic is not surprising. As America ages so will the percentage of income from SS and Medicare. Guess what? It will continue to increase even if the economy gets better.

Sun, 02/26/2012 - 19:34 | 2198952 Bansters-in-my-...
Bansters-in-my- feces's picture

Speaking of corrupt.

I challenge anyone to go to kitco gold lease rate charts,and in the past 6 month chart on lease rates to find the big negative dip on feb 2nd 2012...

It has been vaporized.

did not exsist....

I have brought this to bimbos attention many times and they still have not corrected this deciet.

I have the real chart saved as picutres but do not know how to put up with comment.

But other people who follow gold lease rates must have noticed the lying past 6 month gold lease rate chart.

The big V dip in lease rates in gone off the chart....

Too Fucking Funny.


fUCK YOU jon

Sun, 02/26/2012 - 21:33 | 2199185 CitizenPete
CitizenPete's picture

strange  -  

Sun, 02/26/2012 - 19:37 | 2198956 The Alarmist
The Alarmist's picture

People keep talking about reaching the tipping point as if it is some time in the future.

Sun, 02/26/2012 - 19:46 | 2198970 yogibear
yogibear's picture

What does 2010 and 2011 look like? With a lot more people getting food stamps and baby boomers collecting  Social Security Disability and early SS? Obama has more control with everyone living off the governemt. If 51% live off the government and Obama promises to continue the land of milk and honey then he will easily get another term. More and more people join the land of milk and honey daily.

Sun, 02/26/2012 - 19:49 | 2198975 SILVERGEDDON

I used to foam at the mouth about stuff like this until a good friend pointed out the fact that those people were doing us a favor. They were not competing with the rest of us for jobs, advancement, success, etc. They were willing to settle for the lowest common denominator, leaving more pie in the plate for the rest of us hard working driven A -type personalities!

Sun, 02/26/2012 - 19:53 | 2198983 goforgin
goforgin's picture

LOL. I always said that there is no difference between MSM and ZH. The psychopaths at the top will hire half of you to kill the other half. With luck you'll kill each other.

I don't think that there is single reader at ZH who even understands economics, that's why I use a different avatar now, because I am too embarrassed to use my own.

The mass of collective stupidity found here at ZH is astonishing.

To you all Ayan Rand fanboys: if an employer hires an employee, it's the employee that pays the employer.

Economy does not distinguish whether a job is created in the private or public sector. The only thing that an economy cares about is how much you consume and borrow. If one spends their $900 Social Security check and borrows additional $100 from Pay Date Loans, that person is a contributor. If on the other hand, one earns $20 million and spends just a $1million, that person is a useless parasite that takes more from the economy than they contribute--ah, the paradigm and cause of endless South American poverty.

If you have trouble understanding these simple real examples, then you understanding of economics is at level of a chimp.

Sun, 02/26/2012 - 20:14 | 2199033 cherry picker
cherry picker's picture

Economics is a bullshit profession.  There is truth to supply and demand and economies of scale but the rest is work of imagination and that is why so many educated economists disagree. :)

Mon, 02/27/2012 - 01:44 | 2199810 FeralSerf
FeralSerf's picture

Economists are not educated. They're trained.

Sun, 02/26/2012 - 20:18 | 2199041 Atomizer
Atomizer's picture

Glad you’re too embarrassed. Riddle me on your secret chimp economic understanding, by disguising your psychopathic behavior in changing an avatar to post on Zero Hedge?

What a Democrat was in in 1961.

My question to the Democrats in the United States of America.

Q: How have you strayed from your Democrat Party principles? What JFK had said, doesn’t seem to represent your current political party line. Welcome your comments..




Mon, 02/27/2012 - 02:01 | 2199826 FeralSerf
FeralSerf's picture

I'm not a Democrat (or a Republican), but I'll take a crack at it.

What JFK said in your quote was not a "Democrat" thing, i.e. not "Democrat Party principles".  Truman's administration was just as guilty as Eisenhower's in classifying documents, not so that America's enemies couldn't see them, but so that Americans could not see them.

Allen Dulles was probably the most instrumental individual in the policy of hiding the operations of government from the American people.   This precedent has remained with us since through all administrations, with perhaps a slight let up during Carter's administration when some of the spooks were made redundant only to start their own private  government contracting company.  The Reagan-Bush administrations made many of these private contractors rich beyond their wildest dreams (and the taxpayers much poorer).

Sun, 02/26/2012 - 20:21 | 2199049 Let The Wurlitz...
Let The Wurlitzer Play's picture

If the employee has the capacity to hire the employer that the employee should not need to work.

If one spends their $900 paycheck and borrows $100 that person is in debt.

If a person that makes $20M, spends $1M and invest the balance they are employing countless others, supporting householde and feeding families.

South Americas problem has been political corruption and lack of property rights. - just like Africa(the wealthiest land on the planet by resources).  These problems are catching up to America now.

As far as the name calling goes (pshychopaths, fanboys, stupid, chimps, etc.) tell saul alinsky I said hi.



Sun, 02/26/2012 - 21:16 | 2199163 Atomizer
Atomizer's picture

2 weeks 6 hours.. This person will begin taking some free Obama government medication and end up jumping from a bridge. The parasite family members will sue the drug company and live happily ever after. The mouth breathers will not succeed in scamming our medical system. :)

Sun, 02/26/2012 - 20:31 | 2199073 Hugo Chavez
Hugo Chavez's picture

You clearly need to read more economics. Only Keynes, an admirer of fascism, and his followers would say the ant is the parasite and the grasshoper the virtuous one.

The problems in south america have less to do with savers than with laws that create economic inefficiency.

Opportunity cost is a big deal not reflected in your view that all spending is the same. A society spending productive resources in wasteful ways may have the same current gdp as one that spends more efficiently, but lets revisit those two societies a few generations later. Paying people to dig ditches and other people to fill them is a waste of productive capacity that could have been allocated more efficiently elsewhere. In a generation that society has a bunch of disturbed earth but nothing else.

Yes it does matter who does the spending and how ones income is derived. The government spending is the most economically inefficient in aggregate. Wasting all the country's resources on building huge pyramids is what ultimately lead to egypt not having the productive capacity to thrive and avoid subjugation. Japan has built quite a few useless projects and kept people employed,but these paychecks and spending are little more productive in the long run than digging and filling holes, or building pyramids.

Sun, 02/26/2012 - 21:02 | 2199135 Xkwisetly Paneful
Xkwisetly Paneful's picture

I guess when an economist actually becomes a financial stake holders in their predictions they are no longer called economists but just broke?

I'll play along, yes because the $19million is sitting under a mattress somewhere and the guy fast forwarding demand into the present isn't really taking away  future demand.

IF you have trouble understanding these concepts you would likely starve if forced to depend on a proprietary opinion for sustenance.


Sun, 02/26/2012 - 22:36 | 2199335 lizzy36
lizzy36's picture

Well your 2 week track record on ZH definately gives you credibility when commenting on the collective supidity of ZH. You must have your PH.D in economics.

Mon, 02/27/2012 - 02:56 | 2199871 Lednbrass
Lednbrass's picture

And the fact that all the trained economists out there have been utterly useless during the events of the last few years and wrong about everything seems completely lost on you.  When you get out of school and actually work for a living, you are going to be in for some rude surprises.

Chimp indeed. You did nothing more then spank little Mr. Monkey in public like the little beta male baboon you are and fling excrement.

Sun, 02/26/2012 - 20:27 | 2199066 Thadeous
Thadeous's picture

All this map tells me is where I don't want to live. Nothing more.

Sun, 02/26/2012 - 20:35 | 2199083 Hugo Chavez
Hugo Chavez's picture

Haha. True!

I always said i would like living in the country, except for all those country people. Notice how rural a lot of those places are?

Sun, 02/26/2012 - 21:39 | 2199199 Thadeous
Thadeous's picture

Utah, Colorado, Kansas, Wyoming, Idaho.


Thats about the only states that have any freedom left and the rest are pretty much overrun by idiots and roaches as far as I'm concerned. This graph just gives me more of a reason to stay away from the south.

Sun, 02/26/2012 - 20:32 | 2199075 zkay
zkay's picture
  6. Monday 27 February 00:01 GMT 2012
  8. The Global Intelligence Files
  10. Twitter tag: #gifiles
  13.     Monday 27 Feburary, noon, Frontline Club, 13 Norfolk Place, Paddington,
  14. London, W2 1QJ.
  16. LONDON--Today WikiLeaks began publishing The Global Intelligence Files – more than five million emails from the Texas-headquartered "global intelligence" company Stratfor. The emails date from between July 2004 and late December 2011. They reveal the inner workings of a company that fronts as an intelligence publisher, but provides confidential intelligence services to large corporations, such as Bhopal's Dow Chemical Co., Lockheed Martin, Northrop Grumman, Raytheon and government agencies, including the US Department of Homeland Security, the US Marines and the US Defense Intelligence Agency. The emails show Stratfor's web of informers, pay-off structure, payment-laundering techniques and psychological methods, for example:
Sun, 02/26/2012 - 21:30 | 2199180 CitizenPete
CitizenPete's picture

This will raise a few eyebrows...  Lots of names emails and phone numbers in those emails and docs.

Sun, 02/26/2012 - 21:12 | 2199116 Bringin It
Bringin It's picture

The NYT sucks.

If the legions were not at war, PTB would not need so much bread and circus to placate the masses.  Without the malinvestment that is war, more of the masses would be at work and not in need of b&c to stay placated. 

The Islamaphobic Terror Wars put another $4trillion dollars in debt claims on your goods.  Not to mention a lot of people got killed over nothing but asset class rotation.

Cheerleading for the Islamaphobic Terror Wars (ITWS), the NYT will do what it takes to sheild the masses from realizing where the problem lays. 

That's why ...

The NYT sucks.

Sun, 02/26/2012 - 20:51 | 2199119 sgt_doom
sgt_doom's picture

Simple way to remedy that since the BLS study published in 2009 demonstrated that since July of 1999, there has been ZERO NET NEW job creation in the USA, and that still holds true to this day.  (Greater loss of jobs than new jobs created, etc.).

Destroy all the jobs offshorers, and those corrupt politicians who still refuse to end tax breaks and corporate welfare for all those criminal corporations who offshore jobs, and create new jobs offshore, with US foreign aid, going to build their offshore factories and production facilities.

Simple....simple....economic systems are not one-way pipelines, filled with propaganda from the US Chamber of Commerce and McKinsey falsely claiming that two new jobs will miraculously appear for each and every job offshored.

More honest is that with each job offshored, so goes a piece of the GDP.

'Nuff said.....

Sun, 02/26/2012 - 21:31 | 2199182 goforgin
goforgin's picture

It's the poor who caused GFC, you see Jimmy Carter enabled legislation that created community banks whose purpose was to promote housing ownership among people of color. You see the government told banks to make loans to poor people....this led to sub-prime fiasco and global financial meltdown. Now thanks to ZH and NYT you can see where those people live.

Mon, 02/27/2012 - 02:09 | 2199835 FeralSerf
FeralSerf's picture

The Reagan, Bush and Clinton administrations were the ones that really cashed in on all these sub-prime loans to the poor.  The poor and even the the rich couldn't borrow shit during the Carter-Volcker high interest years.  

Sun, 02/26/2012 - 21:14 | 2199162 zkay
zkay's picture

"Among the millions of other leaked Stratfor emails are some that reveal dubious financial practices, including an apparent insider trading scheme with Goldman Sachs Managing Director Shea Morenz, who joined Stratfor's board of directors and invested "substantially" more than $4 million in the scheme, called StratCap. "What StratCap will do is use our Stratfor's intelligence and analysis to trade in a range of geopolitical instruments," wrote Stratfor CEO George Friedman in September 2011. StratCap was designed through a complex offshore share structure to appear legally independent, but Friedman assured Stratfor staff otherwise: "Do not think of StratCap as an outside organisation. It will be integral... It will be useful to you... We are already working on mock portfolios and trades." (StratCap has been due to launch in 2012, though that could now change.)"

Sun, 02/26/2012 - 21:36 | 2199192 DosZap
DosZap's picture

Newsflash,Bond Holders to get it the arse.....................

Buy BONDS!!!!!!!!!!!!!!!!!!!!!

Muni's are SAFE!!!!!!!!!!!

Sun, 02/26/2012 - 21:42 | 2199205 DosZap
DosZap's picture

The trouble with Socialism, is that its like Communism,take away the peoples incentive to work harder for more,and no one will work,they go thru the motions but production falls to near Zero.


Mon, 02/27/2012 - 00:14 | 2199620 FeralSerf
FeralSerf's picture

The German Nazi fear-of-death incentive was much more effective at keeping production up.  And they had a good war to use up all that otherwise useless junk.

Sun, 02/26/2012 - 21:55 | 2199230 Atomizer
Atomizer's picture



Our apology the International World. The minority elected, teleprompter reading, Kenyon hut property owner, Muslim loving, American hating, Mao Zedong student, selling back cars financed by US taxpayers to GE…. sure has an uphill battle in raking second term votes. We promise to make change, no need to hope on outcome.

Sun, 02/26/2012 - 22:04 | 2199254 Dermasolarapate...
Dermasolarapaterraphatrima's picture
JEFF GUNDLACH: These 3 Charts On Government Jobs Should Make You Furious Read more:

Gundlach noted that one of the major problems with U.S. federal deficits is federal government employee pay.

He was appalled to see that these employees made "so much more than the private workers, who pay the taxes, that pay the salaries of the government workers!"

Mon, 02/27/2012 - 01:14 | 2199755 Rogue Economist
Rogue Economist's picture

The Geography of Goobermint Benefits

Under Economics at the Doomstread Diner


Mon, 02/27/2012 - 01:52 | 2199822 mimiss
mimiss's picture

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Mon, 02/27/2012 - 02:33 | 2199855 Sk84life
Sk84life's picture

Just my 2 cents, but all in all food stamps/housing/etc are basically subsidising Verizon, Apple and other wireless and tech company's.  I have lived in the "hood" for many years and just recently moved. Almost EVERY time I was at the grocery store and someone was using an EBT card they would text on there smart phone while in line.  They have jobs just cant afford $200-$300 phones and the service and food( so daddy gov't steps in).  1 in 8 people on food stamps in america is shows how messed up the system is and is rewarding poor budget decisions.

Mon, 02/27/2012 - 07:28 | 2200005 justsayin2u
justsayin2u's picture


Mon, 02/27/2012 - 09:24 | 2200149 Drachma
Drachma's picture

Anyone else notice the up-trend in every category but Veterans' Benefits?

Mon, 02/27/2012 - 09:36 | 2200174 ub40onlyonce
ub40onlyonce's picture

More proof the Democratic Party is enslaving America.  Do a simple compare of Unemployment Insurance to the Political Map (2008).  Even down to the Congressional seat leve and you find the VAST majority trends Democractic where unemployment is high.

Mon, 02/27/2012 - 10:28 | 2200306 hellas4life
hellas4life's picture

not that it matters since both the dems and repubs are different sides of the same coin, but the 1.4 trillion deficit in fiscal year 2009 can't really be attributed to obama since it was based on a budget passed in oct 2008.  most of the debt since 2009 is because of the wars coming on balance sheet, the never ending bailouts, and lower tax revenues from wall street imploding the economy

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