Entitlement Spending per Beneficiary Increases 3‑fold Since 1966, Correlates with Declining Personal Savings

Entitlement Spending per Beneficiary: Inflation-Adjusted Average Pre-Tax Income from Entitlement Programs Has Gone Up 3x Since 1966 to $12K in 2008, or 15% of Average Pre-Tax Income Inflation-Adjusted Pre-Tax Income from Entitlement Programs’ per Beneficiary & As % of Average Pre-Tax Income, 1966 - 2008 $14,000 16% $12,000 - - - ---- === eee ee py --_ 14% $10,000 ---------------..------5A- \e ef --- eo ae anil $4,000 i i $2,000 F 7 $0 TT T T T T 0% 1966 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 8% Income 6% 4% Annual Pre-Tax Income from Entitlement Programs per Beneficiary ($ / year) 2% Entitlement Income as % of Average Pre-Tax am Average Pre-Tax Income from Entitlement Programs ——As % of Total Pre-Tax Income Note: 1) Entitlement income calculated as Government Social Benefits to persons less Veterans benefits. KP Source: Social Security Administration, Dept. of Health & Human Services, Bureau of Economic Analysis. (@)E) www.kpcb.com USA Inc. | Income Statement Drilldown 89 Entitlement Spending: Rising Entitlement Income Is Highly Correlated (82%) with Falling Personal Savings Personal Savings vs. Entitlement! Income as % of Average Disposable Income, 1970 - 2010 — Savings as % of Average Disposable Income 20% ~- ——Entitlement/ Welfare Income as % of Average Disposable Income ----------— ssf 1970 - 2010 Correlation: -82% Entitlement Income / Personal Savings as % of Disposable Income N Qt tt 1970 1975 1980 1985 1990 1995 2000 2005 2010 Note: 1) Entitlement income calculated as Government social benefits to persons in the NIPA series Table 2.1. Savings rate is the amount of money saved divided by income after taxes. P Sources: BEA (@E) www.kpcb.com USA Inc. | Income Statement Drilldown 90 HOUSE_OVERSIGHT_020886