In 1979 (earliest data), roughly 40% of U.S. households received more in federal, state, and local government benefits than they paid in federal taxes. By 2019 (latest data not during the C-19 pandemic), this figure had increased to 60%. Over this same period, the average inflation-adjusted government benefits given to middle-income households increased from $5,000 in 1979 to $18,000 in 2019. Government benefits can suppress market income by (1) providing the means and incentive not to work, (2) reducing the incentive to work by cutting take-home pay (if taxes are raised to pay for the benefits), and (3) depressing wages by decreasing productivity-enhancing investments (if governments borrow the money to pay for the benefits).