http://dmarron.com/2009/08/13/latest-data-on-transfers-and-income/ Musings on Economics, Finance, and Life Thu, 24 May 2012 19:06:33 +0000 hourly 1 http://wordpress.com/ http://dmarron.com/2009/08/13/latest-data-on-transfers-and-income/#comment-654 Thu, 13 Aug 2009 15:27:05 +0000 http://dmarron.com/?p=1393#comment-654 [...] Transfers and Income On his blog, Donald Marron looks at the contributions government transfers have made to income. “The increasing importance of transfers reflects both short-run developments and long-run trends. In the past year, the importance of transfers has grown because of (a) weakness in other forms of income, (b) the natural expansion of transfers due to economic weakness (e.g., increases in unemployment insurance payments), and (c) policies to expand benefits (e.g., as an attempt at stimulus). Over the longer run, however, the growth of transfers has been driven by the expansion of entitlement programs. To get a handle on these different factors, it’s useful to distinguish three different types of transfer payments: Old-age, survivors, disability, and health insurance (which I have labeled Social Security and Health Insurance), unemployment benefits, and other (which includes food stamps, welfare, and other programs): Unemployment benefits have grown rapidly in recent months. They remain small, however, relative to other transfer programs. Other transfers spiked in May because of the special payments, but remained elevated in June. A similar spike occurred in mid-2008 due to tax rebates from the first stimulus; a portion of those rebates were characterized as transfer payments (rather than tax reductions) because they went to individuals who didn’t have any tax liability. Transfer payments for Social Security and health insurance have grown the most over the past few decades. That last factor is, of course, the reason that our long-run budget situation looks so grim.” [...]

]]> http://dmarron.com/2009/08/13/latest-data-on-transfers-and-income/#comment-652 Thu, 13 Aug 2009 15:07:06 +0000 http://dmarron.com/?p=1393#comment-652 [...] Latest Data on Transfers and Income, by Donald Marron [...]

]]> http://dmarron.com/2009/08/13/latest-data-on-transfers-and-income/#comment-651 Thu, 13 Aug 2009 14:58:20 +0000 http://dmarron.com/?p=1393#comment-651 [...] Transfers and Income On his blog, Donald Marron looks at the contributions government transfers have made to income. “The increasing importance of transfers reflects both short-run developments and long-run trends. In the past year, the importance of transfers has grown because of (a) weakness in other forms of income, (b) the natural expansion of transfers due to economic weakness (e.g., increases in unemployment insurance payments), and (c) policies to expand benefits (e.g., as an attempt at stimulus). Over the longer run, however, the growth of transfers has been driven by the expansion of entitlement programs. To get a handle on these different factors, it’s useful to distinguish three different types of transfer payments: Old-age, survivors, disability, and health insurance (which I have labeled Social Security and Health Insurance), unemployment benefits, and other (which includes food stamps, welfare, and other programs): Unemployment benefits have grown rapidly in recent months. They remain small, however, relative to other transfer programs. Other transfers spiked in May because of the special payments, but remained elevated in June. A similar spike occurred in mid-2008 due to tax rebates from the first stimulus; a portion of those rebates were characterized as transfer payments (rather than tax reductions) because they went to individuals who didn’t have any tax liability. Transfer payments for Social Security and health insurance have grown the most over the past few decades. That last factor is, of course, the reason that our long-run budget situation looks so grim.” [...]

]]> http://dmarron.com/2009/08/13/latest-data-on-transfers-and-income/#comment-650 Thu, 13 Aug 2009 14:49:54 +0000 http://dmarron.com/?p=1393#comment-650 [...] Transfers and Income On his blog, Donald Marron looks at the contributions government transfers have made to income. “The increasing importance of transfers reflects both short-run developments and long-run trends. In the past year, the importance of transfers has grown because of (a) weakness in other forms of income, (b) the natural expansion of transfers due to economic weakness (e.g., increases in unemployment insurance payments), and (c) policies to expand benefits (e.g., as an attempt at stimulus). Over the longer run, however, the growth of transfers has been driven by the expansion of entitlement programs. To get a handle on these different factors, it’s useful to distinguish three different types of transfer payments: Old-age, survivors, disability, and health insurance (which I have labeled Social Security and Health Insurance), unemployment benefits, and other (which includes food stamps, welfare, and other programs): Unemployment benefits have grown rapidly in recent months. They remain small, however, relative to other transfer programs. Other transfers spiked in May because of the special payments, but remained elevated in June. A similar spike occurred in mid-2008 due to tax rebates from the first stimulus; a portion of those rebates were characterized as transfer payments (rather than tax reductions) because they went to individuals who didn’t have any tax liability. Transfer payments for Social Security and health insurance have grown the most over the past few decades. That last factor is, of course, the reason that our long-run budget situation looks so grim.” [...]

]]> http://dmarron.com/2009/08/13/latest-data-on-transfers-and-income/#comment-648 Thu, 13 Aug 2009 14:41:59 +0000 http://dmarron.com/?p=1393#comment-648 [...] Transfers and Income On his blog, Donald Marron looks at the contributions government transfers have made to income. “The increasing importance of transfers reflects both short-run developments and long-run trends. In the past year, the importance of transfers has grown because of (a) weakness in other forms of income, (b) the natural expansion of transfers due to economic weakness (e.g., increases in unemployment insurance payments), and (c) policies to expand benefits (e.g., as an attempt at stimulus). Over the longer run, however, the growth of transfers has been driven by the expansion of entitlement programs. To get a handle on these different factors, it’s useful to distinguish three different types of transfer payments: Old-age, survivors, disability, and health insurance (which I have labeled Social Security and Health Insurance), unemployment benefits, and other (which includes food stamps, welfare, and other programs): Unemployment benefits have grown rapidly in recent months. They remain small, however, relative to other transfer programs. Other transfers spiked in May because of the special payments, but remained elevated in June. A similar spike occurred in mid-2008 due to tax rebates from the first stimulus; a portion of those rebates were characterized as transfer payments (rather than tax reductions) because they went to individuals who didn’t have any tax liability. Transfer payments for Social Security and health insurance have grown the most over the past few decades. That last factor is, of course, the reason that our long-run budget situation looks so grim.” [...]

]]> http://dmarron.com/2009/08/13/latest-data-on-transfers-and-income/#comment-647 Thu, 13 Aug 2009 14:22:34 +0000 http://dmarron.com/?p=1393#comment-647 [...] [...]

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