Tag Archives: Social Science

Government handouts make up 35% of all wages

From CNBC.

Excerpt:

Government payouts—including Social Security, Medicare and unemployment insurance—make up more than a third of total wages and salaries of the U.S. population, a record figure that will only increase if action isn’t taken before the majority of Baby Boomers enter retirement.

Even as the economy has recovered, social welfare benefits make up 35 percent of wages and salaries this year, up from 21 percent in 2000 and 10 percent in 1960, according to TrimTabs Investment Research using Bureau of Economic Analysis data.

“The U.S. economy has become alarmingly dependent on government stimulus,” said Madeline Schnapp, director of Macroeconomic Research at TrimTabs, in a note to clients. “Consumption supported by wages and salaries is a much stronger foundation for economic growth than consumption based on social welfare benefits.”

The economist gives the country two stark choices. In order to get welfare back to its pre-recession ratio of 26 percent of pay, “either wages and salaries would have to increase $2.3 trillion, or 35 percent, to $8.8 trillion, or social welfare benefits would have to decline $500 billion, or 23 percent, to $1.7 trillion,” she said.

[…]Social welfare benefits have increased by $514 billion over the last two years, according to TrimTabs figures, in part because of measures implemented to fight the financial crisis. Government spending normally takes on a larger part of the spending pie during economic calamities but how can the country change this make-up with the root of the crisis (housing) still on shaky ground, benchmark interest rates already cut to zero, and a demographic shift that calls for an increase in subsidies?

At the very least, we can take solace in the fact that we’re not quite at the state welfare levels of Europe. In the U.K., social welfare benefits make up 44 percent of wages and salaries, according to TrimTabs’ Schnapp.

You can see a nice graph of welfare spending and another graph of single motherhood in this post at Director Blue. He makes the same point I made about increased welfare spending destroys marriage by reducing the need for men in their traditional roles.

How psychology medicalizes character flaws to remove personal responsibility

Story from Town Hall from moderate conservative George Will. (H/T Muddling Towards Maturity)

Excerpt:

The fourth edition of the Diagnostic and Statistical Manual of Mental Disorders (DSM), psychiatry’s encyclopedia of supposed mental “disorders,” is being revised. The 16 years since the last revision evidently were prolific in producing new afflictions. The revision may aggravate the confusion of moral categories.

[…]This DSM defines as “personality disorders” attributes that once were considered character flaws. “Antisocial personality disorder” is “a pervasive pattern of disregard for … the rights of others … callous, cynical … an inflated and arrogant self-appraisal.” “Histrionic personality disorder” is “excessive emotionality and attention-seeking.” “Narcissistic personality disorder” involves “grandiosity, need for admiration … boastful and pretentious.” And so on.

If every character blemish or emotional turbulence is a “disorder” akin to a physical disability, legal accommodations are mandatory. Under federal law, “disabilities” include any “mental impairment that substantially limits one or more major life activities”; “mental impairments” include “emotional or mental illness.” So there might be a legal entitlement to be a jerk.

[…]Furthermore, intellectual chaos can result from medicalizing the assessment of character. Today’s therapeutic ethos, which celebrates curing and disparages judging, expresses the liberal disposition to assume that crime and other problematic behaviors reflect social or biological causation. While this absolves the individual of responsibility, it also strips the individual of personhood, and moral dignity.

James Q. Wilson, America’s pre-eminent social scientist, has noted how “abuse excuse” threatens the legal system and society’s moral equilibrium. Writing in National Affairs quarterly (“The Future of Blame”), Wilson notes that genetics and neuroscience seem to suggest that self-control is more attenuated — perhaps to the vanishing point — than our legal and ethical traditions assume.

Related to our recent discussions about personal responsibility and blaming others.