Gov't payouts balloon as private sector pay shrinks: Paychecks from private business shrank to their smallest share of personal income in U.S. history during the first quarter of this year, a USA TODAY analysis of government data finds. At the same time, government-provided benefits â from "Stimulus" programs, Social Security, unemployment insurance, food stamps and other programs â rose to a record high during the first three months of 2010. The trend is not sustainable, says University of Michigan economist Donald Grimes. Reason: The federal government depends on private wages to generate income taxes to pay for its ever-more-expensive programs. http://www.usatoday.com/money/economy/income/2010-05-24-income-shifts-from-private-sector_N.htm IMO, this hurts all Americans, including the recipients of the redistributed wealth because productivity falls. People getting handouts don't work for the handouts, and the businesses produce less because they give away the money they need to grow and pay wages with to the government.