Personal income grew 0.3% in February, but how much of that was transfer payments (money via other taxpayers via the government)?
Well, actually there’s some good news. As a share of total income, transfer payments actually dipped slightly in February, failing to keep up with the headline.
This chart show transfer payments as a percentage of total income going back 10 years.
But make no mistake. The trend is way up.
Here’s a long term look. As a share of personal income, transfer payments are up nearly 3-fold since 1959.
And that trend isn’t going to reverse itself for long. The bottom line is that as our society ages, more people will be reliant on some sort of transfer to live on, almost certainly.