Here's information on Federal Contracts for Paper Shredding Services from FY2000-2007 from the federal government itself. Notice anything about it? Expenditures on paper shredding have increased six-fold since Bush took office. It's now $3 million a year (note the 2007 bar is for just the first 3 quarters).
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Nowadays, it is no longer sufficient to just tear the paper into small strips. Identity theft is on the upswing and it is necessary to cut paper into the pieces measurable only by millimeters. Shredding security levels one to six range from 12mm sizes to .8 mm sizes.
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