nation of recipients

A few days ago Greg Mankiw from Harvard discussed the most recent report from the Congressional Budget Office. One of his striking findings is that in 2008 for the first time ever the middle twenty percent of American households received more dollars in transfers than they paid in taxes. In other words, a majority of the American people is now a net recipient of government support. No doubt this will have some impact on the presidential election this year.

Here you find Mankiw’s blog post:

The Progressivity of Taxes and Transfers

The middle class, having long been a net contributor to the funding of government, is now a net recipient of government largess.

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