One-third of working Americans support two-thirds of the population

Il est intéressant cet article, car le premier article que j’ai écrit sur ce sujet, il y a plus de 5 ans, arrivait aux mêmes conclusions: Le tiers de la population fait vivre les deux autres tiers de la population, j’en avais traumatisé quelques-uns en révélant ce constat.  

Je l’ai raffiné 4 ans plus tard, Statistiques fiscales des particuliers du Québec, pour arriver à un constat plus précis, 25 %  de la population essaie de faire suffisamment de richesse pour faire vivre le  ¾ de la population.

Évidemment, cela ne marche pas, pas assez de gens dans le privé qui payent assez d’impôts pour soutenir tous les cadeaux qui ont été accordés depuis des décennies.

D’où l’éternel déficit du Québec.

Encore plus grave, le chiffre du 25 % va encore diminuer :

·         Puisque, nous avons le deuxième plus haut taux de démographie au monde, de plus en plus de vieux prennent leurs retraites avec de moins en moins de jeunes générant suffisamment de richesse pour la supporter.

·         Ajouter, à cela, nos jeunes ont des emplois de plus en plus précaires avec des salaires peu rémunérés particulièrement à cause du chantage salariale des compagnies, risquant ainsi de payer peu d’impôts.

Belle perspective n’est-ce pas ?


Extrait de: One-third of working Americans support two-thirds of the population: The hidden figures of those not in the labor force and transfer payments., mybudget360

There still seems to be little acknowledgement of the massive army of people now falling into the category labeled as not in the labor force. Some of this growth is predictable like many older Americans hitting retirement age. But this only explains a small portion of the change since many older Americans are needing to work much longer since they have paltry retirement savings. The unemployment rate dropping dramatically has largely been driven by this category expanding and labor force participation is at generational lows.

·         You also have spending growing in the form of military, Medicare, and Social Security that are now eating up a larger portion of the budget.

·         Deficit spending continues to occur in the face of a booming economy.

Why?

The math shows that one-third of private sector workers
are supporting two-thirds of the population.

We have over 92 million Americans that are now part of the not in the labor force category. Let us dig into the numbers even further since some tend to think this is only happening because of older baby boomers.

Not in the labor force demographics – not just old people

People tend to think that those in the not in the labor force category are largely older people. That is true but we’ve seen a large growth of those in their prime working years landing in this category. That is not a good thing. We’re also seeing more students go to college which is positive as long as you are not going into massive debt and are pursuing a quality education. Sadly, many are going into deep debt for a mediocre education.

Let us look at the not in the labor force category carefully:

Not in the labor force

Not-in-Labor-Force-Demographics, Source: BLS, Jobenomics Blog

This is a very high number of people not in the labor force. Nearly one-third of the country falls in this category. And what we find is more older people are making up a larger portion of the labor force.

Labor force participation rates – the boost in unemployment figures

There has been some dramatic shifts to the labor force. Take a look at the following chart:

shifts to the labor force

Labor-Force-Participation-By-Age, Source: BLS, Jobenomics Blog

Over the last two decades:

1.      The largest growth to the labor force has come from those 55 and older.

2.      For younger Americans the labor force hasn’t been so kind.

3.      Part of this is more people going to college and taking on massive student debt.

4.      Another part of this is a growing number of part-time workers that land in transient positions creating many people that enter and exit the labor force on a routine basis.

There has also been an argument that many older workers are locking up positions that would once go to younger workers.

Ultimately the numbers are not as great as the headline unemployment figures report. And what we have is now a large portion of transfer payments hitting the economy.

Transfer payments

Here is an interesting chart regarding transfer payments:

 

Transfer payments

With an aging population and more people drawing on government programs, more disposable income is going to transfer payments while the labor force participation rate falls to generational lows.

This simply puts more pressure on the current workforce.

One-third working for two-thirds

One of the most startling facts is that one-third of the nation’s workers are supporting two thirds of the population:

one-third of the nation’s workers

·         Government workers are paid via funds that come from taxes.

·         92 million are simply not in the labor force.

·         Another 69 million are not working, mostly children.

·         And 19 million are unemployed.

Is it any surprise why we are running big deficits?

These are mega trends that won’t reverse anytime soon. It also helps to explain why millions of Americans are completely unprepared for a long retirement.

Si elle raffine son raisonnement, en examinant attentivement, combien de travailleurs dans le privé mais ne paie pas d’impôts puisque leurs salaires sont trop bas.

Tout probable, elle va arriver aux mêmes chiffres que les miens,
environ
25 % de la population qui tente de faire vivre le ¾ de la population.

I’m not sure if the mainstream press will cover this issue more carefully but it is very important and helps to explain why our rosy unemployment figure isn’t as great as it appears.

Médias traditionnels, ils font du bruit pour faire du bruit,
comme les politiciens, en ne posant jamais les vrais questions.