Meanwhile, the jobless recovery in the economy at large could well be in jeopardy — which could accelerate the vicious circle. Considering the volatility in Europe and the deflationary trend in the U.S., some economists predict a "double dip" recession that could Christian Dior drive down growth in the American economy, after it had increased over the past three quarters.

University of Michigan economist Donald Grimes told the paper that the trend away from private income isn’t sustainable: After all, the government needs revenue generated by income tax to fund programs like food stamps. Government subsidies are often not taxed at all, or at lower rates than private salaries, leaving the government with less revenue to cover the benefits that people rely on during an economic crisis.

A record-low 41.9 percent of Americans’ personal income came Christian Dior from paychecks from private businesses in the first quarter of 2010, a new study by USA Today finds. Meanwhile, government benefits such as food stamps and unemployment insurance rose to a record-high 17.9 percent of Americans’ income.
 
In 2007, before the recession, 44.6 percent of income came from private wages and 14.2 percent came from government benefits. Roughly 8 million Americans have lost their jobs in the recession, driving up government assistance. But even before the recession, paychecks were declining as a share of income as health and pension benefits took a greater Christian Dior share, USA Today’s Dennis Cauchon notes.