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Top analyst: This is 2007 all over again "We are starting to see some fraying around the edges..." How to open a foreign bank account... without leaving the country A simple and cost effective alternative to flying across the globe. Jim Chanos: "Hedge funds are being demonized for the failings of governments" Master short seller sets the record straight on the euro crash The most terrifying government statistic you haven't heard A fact you won't see on the nightly news. Four characteristics of a great dividend stock Less than 300 of the 10,000 US publicly traded stocks meet these criteria. One of the greatest short sales in history How an unknown medical doctor made $100 million on one trade. Regards, Brian Hunt Editor in Chief, The Daily Crux www.thedailycrux.com American reliance on government at all-time high MORE BUSINESS STORIES Drivers complain about repaired Toyotas Economy grows, but snowstorms bite into some areas Greece deepens cuts; 'IMF option' open Continental to let coach travelers buy more room By Patrice Hill The so-called "Great Recession" has left Americans depending on the government dole like never before. Without record levels of welfare, unemployment and other government benefits as well as tax cuts last year, the income of U.S. households would have plunged by an astonishing $723 billion — more than four times the record $167 billion drop reported last month by the Commerce Department. Moreover, for the first time since the Great Depression, Americans took more aid from the government than they paid in taxes. The figures show the devastating results of the massive job losses last year and indicate that the economic recovery that began last summer is tenuous and has a long way to go before many Americans resume life as normal, analysts said. Economic growth typically depends on consumer spending, which is fed by wages, rents, interest and other forms of income. But the tentative revival of consumer spending in the second half of last year appears to have been fed largely by an extraordinary flood of government spending, as growth in other kinds of income has disappeared. "Governmental support was critical in keeping the economy, particularly consumer spending, from completely collapsing during the crisis," said Harm Bandholz, an economist at Unicredit Markets. He said he is concerned that so much of the economic rebound is a result of government spending rather than a revival of private income and jobs. That situation is unsustainable, he said, because the government has had to borrow massively to prop up the economy and cannot continue that binge for long. TWT RELATED STORIES: • No finish in sight for 'virtual' border fence  • 'Bipartisanship' in Congress: Good or bad? • Obama addresses school-dropout crisis • Breaking ranks on gays in military • Chinese spy buy caught on surveillance video • Arkansas lt. governor to challenge Lincoln While wages and other job-related income fell by a record $206 billion last year to $7.84 trillion, transfer payments from the government such as unemployment checks and Social Security burgeoned by $231 billion to $2.1 trillion. Meanwhile, the amount of taxes that individual Americans paid plummeted by $325 billion to $2.1 trillion as a result of middle-class tax cuts and because nearly 6 million people were thrown out of work and are no longer paying payroll taxes. Commerce economists said last year's unprecedented drop of $256 billion in private wages — the mainstay of consumers in ordinary times — was particularly dramatic, and was more than 40 times larger than the drop in wages during the entire 2001 recession. Equally dramatic, a measure of income that closely tracks the ravages of the recession also plummeted by an unprecedented $384 billion. That measure excludes transfer payments and adjusts for inflation. It has stabilized at $9.1 trillion since the middle of last year, in a sign that the worst of the job and income losses are over. Click here for reprint permissions!  Copyright 2009 The Washington Times, LLC  12Next »