Household incomes have been shrinking as a share of GDP for some years now. However, households alsocontrol less of their own consumption than they did in earlier decades. When third parties control so much of what we consume, and we believe those third parties are financed by others, it is unsurprising that those third parties will seize control of a greater share of GDP. In 1959, households financed 92.8 percent of their own consumption. By 2009, that had fallen to 70.3 percent, with government and employers supplying the balance.
Read the entire column at the National Center for Policy Analysis Health Policy Blog or the Independent Institute's Beacon blog.