Archive

Posts Tagged ‘welfare’
February 6th, 2014 at 2:48 pm
An Idle Generation
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Following on Ashton’s post below (many of the themes of which appear in my column for this week), it’s crucial to note that the hazards presented by Obamacare’s incentives for lower-income Americans to stay out of the workforce are compounding a pre-existing problem. As noted by Mark Peters and David Wessel in yesterday’s Wall Street Journal:

More than one in six men ages 25 to 54, prime working years, don’t have jobs—a total of 10.4 million. Some are looking for jobs; many aren’t…

… The trend has been building for decades, according to government data. In the early 1970s, just 6% of American men ages 25 to 54 were without jobs. By late 2007, it was 13%. In 2009, during the worst of the recession, nearly 20% didn’t have jobs.

To the crisis amongst men, we can add the crisis amongst youth. As noted earlier in the week by Zara Kessler at Bloomberg:

According to a Pew Research Center analysis of U.S. Census Bureau data, 36 percent of the country’s 18- to 31-year-olds were living in their parents’ homes in 2012 — the highest proportion in at least 40 years. That number is inflated because college students residing in dorms were counted as living at home (in addition to those actually living at home while going to school). Still, 16 percent of 25- to 31-year-olds were crashing with mom and pop — up from about 14 percent in 2007 and 10 percent in 1968. In a Pew survey conducted in December 2011, 34 percent of adults aged 25 to 29 said that due to economic conditions they’d moved back home in recent years after having lived on their own.

Every trend line is pointing in the wrong direction. Yes, there are structural issues (technology, offshoring) that complicate the employment picture, but free markets generally resolve such issues given enough time. Markets can’t resolve, however, the pathologies imposed on the economy by government — whether Obamacare’s perverse incentives or the consistently anti-growth policies of the White House.

If nothing changes, the upshot will be the Europeanization of the American economy: fewer workers toiling to support a growing class of government beneficiaries.

Future generations may note the irony of Mitt Romney being so thoroughly pilloried during the 2012 election for his infamous 47 percent comment. While you can quibble with the statistics, the underlying theme is correct: we’re headed towards an economy with fewer makers and more takers. Changing that trajectory will be the responsibility of the next president — and it won’t be an easy one.

May 2nd, 2013 at 1:16 pm
Hidden Costs of Gang’s Immigration Bill

Andrew Stiles explains the reality behind the Gang of Eight claim that illegal immigrants won’t be eligible for public benefits until 13 years after being legalized:

“A notable loophole in the Gang’s legislation explicitly prohibits DHS from considering the likelihood that an applicant for provisional legal status will become a “public charge” — defined as any individual who is “primarily dependent on the government for subsistence, as demonstrated by either the receipt of public cash assistance for income maintenance, or institutionalization for long-term care at government expense.” Critics fear that if a significant number of immigrants meeting that definition are given legal status, state and local government could face an immediate financial burden, and one that could worsen over time.”

Moreover, as I explain in my column this week, the Gang’s prohibition against using federal law’s “public charge” criteria to decide whether illegal immigrants should be legalized undermines claims from Gang members and their allies that mass legalization won’t lead to big government spending increases.

The Heritage Foundation’s Robert Rector is still studying the impact of the Gang’s legalization effort on government spending, and my hunch is that he, unlike the Gang, will include the probable increases incurred by state and local governments if the public charge prohibition becomes law.

If so, the American people will get a clearer picture of the actual costs of legalization. Only then can we have an honest debate about what to do.

December 28th, 2012 at 12:16 pm
“America Works” Better With Less Welfare

Peter Cove writes in City Journal about the success of America Works, his for-profit company that specializes in getting jobs for long-term welfare recipients:

In the past 27 years, America Works has placed more than 250,000 poor people, with an average of five to six years on the rolls, in private-sector jobs, with an average starting wage of $10 per hour plus benefits. In our New York program, to take one example, more than half of these new workers were still on the job after 180 days. The employers that we have worked with include prestigious companies, such as Time Warner, Cablevision, Aramark, J. C. Penney, and American Building Maintenance Industries. Most of these employers keep coming back, asking for more of our referrals.

In his article, Cove recounts his transformation from welfare-state-liberal to work-first reformer.  The theme throughout is that long job training programs are colossal wastes of time and money compared to the America Works model:

…clients with shaky self-confidence are best served by early success in getting a job, not by long periods of preparation. Our weeklong training sessions are narrowly focused on the attributes and skills needed to land an entry-level job. Our trainers work with clients on the basics, such as maintaining a businesslike personal appearance, speaking properly, preparing a résumé, and showing up on time. Clients quickly learn that success depends on self-discipline and their own motivation and effort.

According to a report by U.S. Senator Tom Coburn (R-OK), as of February 2011, “Nine federal agencies spent approximately $18 billion annually to administer 47 separate employment and job training programs.”  Unfortunately, the Government Accountability Office says that “little is known about the effectiveness of most programs.”

Which do you prefer?  A for-profit company with 27 years of experience getting people into jobs they keep, or 47 cross-cutting initiatives that can’t prove whether or not they are effective?

November 12th, 2012 at 1:39 pm
After Immigration Reform, Then What?

Peter Beinart says the GOP’s “Hispanic problem” is about more than just immigration reform and competing forms of amnesty:

Hispanics do feel that the economic system is “stacked against them” and they do “want stuff” like health care, college-tuition assistance, and other government benefits that might help them get ahead. According to Pew, while only 41 percent of Americans as a whole say they want a bigger government that provides more services, a whopping 75 percent of Hispanics do.

Food for thought for those thinking Marco Rubio’s version of the DREAM Act or another legal quick fix will suddenly flip Hispanics from Democrats to Republicans.

October 26th, 2012 at 2:47 pm
Obama and America’s Historic Poverty Rate

Byron York says when it comes to talking about America’s historically high poverty rate, “Barack Obama ignores the issue when it comes time to campaign. A sky-high poverty rate doesn’t fit his theme that things are getting better. So he doesn’t talk about it.”

“But the problem is still there. According to the Census Bureau, the poverty rate has gone from 12.5 percent in 2007 to 13.2 percent in 2008 to 14.3 percent in 2009 to 15.1 percent in 2010 to 15.0 percent in 2011. The last time it was higher than 15.1 percent was in 1965, when the nation’s anti-poverty programs were just taking effect.”

For all his pretensions about being the next FDR, it looks like President Obama’s tenure could signal the death knell for LBJ’s expensive and failed Great Society.

October 19th, 2012 at 7:06 pm
Obama Has Spent 56% More than Taxes Brought In

Larry Kudlow: “…reporter Jeffrey H. Anderson uses a Treasury Department study to chronicle the 7-Eleven presidency. In fiscal year 2012, ending September 30, the government spent nearly $11 for every $7 of revenues taken in. The exact figures are $2.5 trillion in tax revenues and $3.5 trillion in spending. In other words, it spent 44 percent more than it had coming in. Previous fiscal years look even worse: The government spent 56 percent more than revenues in fiscal year 2011 and 60 percent more in fiscal year 2010.

“All in all, according to Mr. Anderson, the government under the Obama administration received $6.8 trillion in taxes and spent $10.7 trillion — 56 percent more than it had available.”

Repeat after me: The government doesn’t have a revenue problem.  It has a spending problem.

October 16th, 2012 at 6:01 pm
5 Points Romney Should Make in Tonight’s Debate

The Heritage Foundation tees up five issues that so far haven’t been mentioned in the Romney-Obama or Ryan-Biden matchups:

1)      Welfare Reform

2)      Trade

3)      Medicaid

4)      Federal Spending and Debt

5)      American-Produced Energy

Each of these is not only critical to American prosperity, but also conveniently is attached to a disastrous policy decision by the Obama Administration.

This summer Obama’s HHS gutted the work requirement for receiving welfare checks that was the hallmark of the mid-1990’s reform.

The President and his fellow liberals in Congress held hostage free trade agreements negotiated by the Bush Administration as a favor to labor unions, and in the process damaged our international standing.

Obamacare is scheduled to hit Medicaid doctors with a 19 percent pay cut starting in 2014.

This is the fourth consecutive year of $1 trillion budget deficits presided over by President Obama, and there is no indication the incumbent will do anything differently if reelected.

As for domestic energy production, Obama’s rejection of the Keystone XL pipeline angered not only consumers paying high gasoline prices, but also the unionized labor that stood to benefit from short- and long-term job creation.

Mitt Romney should look for ways to insert these failures of leadership into his answers during tonight’s townhall debate with Barack Obama.  People need to be reminded that the President’s kneejerk liberalism is bankrupting the country.

September 28th, 2012 at 3:01 pm
‘ObamaPhone’ Program Grew Almost $1 Billion Since 2008

Fox News explains the ‘ObamaPhone’ program lauded by an enthusiastic recipient in this viral video:

The video is drawing attention to the government program — Lifeline — as a national debate unfolds on entitlements and the growing percentage of Americans who pay no income taxes and get a long menu of government benefits. But even though some beneficiaries may credit President Obama for providing the phones, Lifeline is an extension of a program that has existed since 1985. Still, critics including Rep. Tim Griffin, R-Ark., note the program has swelled from $772 million in 2008 to $1.6 billion.

Much of the increase since 2008 springs from the Obama Administration’s decision to subsidize cellular phones and service on top of the landline systems the program originally covered.  The expanded coverage and spending has grown the number of beneficiaries from 7.1 million in 2008 to 12.5 million today.

The government justifies the nearly $1 billion in new spending by claiming that 92 percent of low-income homes now have phone service.

No doubt President Barack Obama needs four more years – and at least a few hundred million dollars more – to close that pernicious 8 percent gap.

August 29th, 2012 at 4:45 pm
Leftist Racists

At The American Spectator, I blasted yet another leftist for projecting her own race-baiting onto Republicans. As it turns out, the editors of National Review did a much more thorough and thoughtful job toward the same end.

Here’s part of it:

Mr. Matthews’s accusations were, as is his style, presented without evidence or argument, and indeed without anything that might even charitably be called intellectual content. That he immediately connects welfare in his mind with race is of course telling: The majority of American welfare recipients are white. Blacks are disproportionately represented on the welfare rolls, it is true. That is not the only place in which black Americans are overrepresented: As conservatives have been shouting from the rooftops for a couple of years now, the black unemployment rate is a national scandal — reason enough to fire Barack Obama on its own. But the majority of unemployed people, like the majority of welfare recipients — and the majority of the country, of course — are white. Reducing the welfare rolls, like reducing the unemployment rate (and the two are not unrelated), is necessary to rebuilding the economic and human strength of the country for Americans of all races. Mr. Matthews here exhibits a crude, zero-sum view of politics and the economy, and then takes the extra step of attributing that crude, zero-sum view to his opponents. This is startling in its simplemindedness.

Enough is enough. This cry of racism from racial-minded numbskulls is the philosophical equivalent of blood libel. The left loves to say that certain forms of speech are not allowable because they are “fighting words.” If so, here’s hoping somebody lands the equivalent of a Joe Frazier hook on these purveyors of calumny. Oh, one day, there will be a reckoning. Yes indeed. Severe and painful ostracism would be a good start.

May 22nd, 2012 at 12:28 pm
To Get More Federal Money, States Claiming Volunteer Organizations are a Form of Welfare Spending
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One of the great triumphs of the federal welfare reform legislation passed in the mid-1990s was an insistence that states lay down tough work requirements for welfare recipients as a condition of receiving federal assistance. Though the fact is little publicized, however, another provision of the law allows states to substitute increased welfare spending for the work requirements and still receive money from Washington. That, of course, is an invitation to mischief, as reported by CNSnews, quoting Congressman Geoff Davis

“Many States have scoured their budgets to find other current program spending–such as for Pre-K, child care, and after school programs–they could report as TANF [welfare] spending,” Davis said at a hearing on Thursday. “Others began counting third-party spending–such as assistance offered by food banks and Boys and Girls clubs–as TANF spending.  One State even apparently found a way to count the value of volunteer hours by Girl Scout troop leaders as State TANF ‘spending.’

This is, by the way, all entirely legal under the law as written.

This is a worthwhile reminder: even legislation as noble as federal welfare reform is only as strong as those charged with carrying it out. The right laws are deeply important. But so are the right lawmakers.

April 30th, 2012 at 12:54 pm
Massachusetts Liberals Opposed to Bottled Water, Fine with Welfare Fraud
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There was a time when the New England town meeting was the ultimate example of civic-mindedness; of small town democracy in action. These days, given the political complexion of much of the Northeast, the gatherings tend to be more representative of just how divorced from reality life can become in the fever swamps of the left. Consider this, from Michael Graham in the Boston Herald:

[The city of] Concord voted 403-364 to make it illegal to sell bottled water. Uh, wait. That’s not right. You can still sell bottled water, it just has to be in larger bottles.

So it’s illegal to sell drinks in bottles smaller than 1 liter. No, that’s not it, either. You can still sell Mountain Dew or mango juice in small, plastic bottles. Just not water.

So the new law boils down to “It’s illegal to sell stuff we Concordians don’t like, and right now we don’t like bottled water . . . except when we buy it ourselves. So there.”

What makes this vote on unflavored liquid so deliciously ironic is that it happened around the same time the Massachusetts House was voting against EBT [Electronic Benefit Transfer — essentially debit cards for those receiving public benefits] fraud — a vote that Concord liberals and their fellow travelers oppose.

While the EBT fraud amendment passed overwhelmingly 122-33, all the “no” votes came from the far left. Liberals like Reps. Alice Wolf (D-Cambridge) and Ruth Balser (D-Newton) voted to keep letting EBT cards pay for “firearms, cosmetics . . . strip clubs, travel services, health clubs, tattoo parlors, jewelry, payment of restitution or bail, and gambling,” according to the Associated Press.

The ideological battle lines of 21st century politics are becoming increasingly clear. Conservatives are those who think you should be able to do nearly anything you like with your own money. Liberals are those who think you should be able to do nearly anything you like with someone else’s.

October 24th, 2011 at 4:48 pm
Jeff Sessions Puts Welfare in Perspective

Alabama Republican Jeff Sessions, ranking member on the U.S. Senate Budget Committee, has been doing yeoman’s work on multiple levels in highlighting waste and proposing both procedural and substantive solutions. His efforts merit, and will in the next few weeks receive, a full column to recount them. By pure happenstance, I shared a plane with the senator and then a lunch at the Atlanta airport with him yesterday. One of the many budget-related topics we touched on was welfare — or, more precisely, food stamps and other welfare-benefits that were not fixed by the tremendous 1996 welfare reform that turned Aid to Families with Dependent Children (a mess) into Temporary Assistance for Needy Families (a huge success). One thing he said was more big-picture and attitudinal than it was program-specific and numbers heavy (although there was plenty of other discussion that did fit those latter categories). I repeat it here both as a teaser for a near-future column, and because, as usual, the good senator is right on target. To quote Sessions:

We need to go back to re-engage the national discussion on how receipt of welfare benefits not only is damaging to the Treasury but also hurts the recipient. We need to go back and re-establish the moral principle that federal assistance should be seen as a temporary aid where possible and the goal should be to help people become independent and self-sustaining.

Jack Kemp used to talk like that. Rick Santorum talks like that. Sometimes Paul Ryan at least comes close to talking like that. There is a nexus between morality and economic policy; it’s not all dollar signs and accounting, but instead about human potential and human lives. Kemp and others used to talk about getting rid of the “welfare trap,” and that’s exactly what Sessions is talking about. The right sort of compassion is one that helps somebody lift himself up, not one that gives him incentive to remain personally helpless.

September 23rd, 2011 at 2:07 pm
Free Trade, Worker Aid Bills Show Policy Differences

Bloomberg News reports the latest ultimatum from House Speaker John Boehner (R-OH) to President Barack Obama:

“We await the president’s submission of the three trade agreements sitting on his desk so the House can consider them in tandem” with the aid and preference programs, Boehner, an Ohio Republican, said in a statement yesterday. “If the president submits these agreements promptly, I’m confident that all four bills can be signed into law by mid-October.”

Apart from Rep. Paul Ryan’s budget resolution and the president’s deficit reduction proposal, there may be no better example of how different is each party’s idea of sound economic policy.

Boehner wants Obama to release three trade treaties negotiated by the Bush Administration so that Americans and their counterparts in Columbia, South Korea and Panama can start enjoying the benefits of free trade.

For his part, Obama wants to force Republicans into funding another round of unemployment benefits, this time for workers displaced by the yet-to-be-ratified agreements.  That’s right: the president wants to spend money on people who may never be fired.

First of all, it’s fallacious to assume that businesses operating at historically low worker levels will fire employees; especially since increased trade opportunities are more likely to lead to hiring increases.  Moreover, Obama fails to recognize the cost of not enacting the three free trade agreements.  For instance, the U.S. Chamber of Commerce estimates that failure to ratify the agreements will cost 380,000 jobs due to missed business opportunities.

At the heart of this dispute is the focus of each party.  Boehner and the Republicans want to spur economic growth.  Obama and the Democrats want to lock-in the growth of the entitlement state.

Boehner is right to demand action on both free trade and worker aid at the same time.  If Obama cries foul, it’s only because his childish attempt to spend more and get less was called out.

May 6th, 2011 at 1:39 pm
Too Few Taxpayers

Tim again hits a crucially important issue  in his column that ran yesterday. When fewer than half of the population pays income taxes, the balance tips in favor of freeloading. The Washington Times editorial Wednesday laments that half of the equation: Welfare, of various sorts, is out of control.

It’s no wonder that the latest Agriculture Department figures shows one out of every five households received food stamps in February. The assistance provided to 20.8 million homes – up 20 percent in the past year-and-a-half – came at an annual cost of $68 billion. Free lunches were handed out to another 18.4 million, leaving taxpayers with a bill for $12.8 billion…. Instead of punishing enterprise and subsidizing poverty, the country needs to restore the conditions that promote prosperity. America’s corporate tax rate – currently the second highest in the world – needs to be cut. We need to restrain federal spending by scaling back the freebies doled out to far too many people. That’s the best way to restart our economic engine.

Only policies that promote growth will put more people above the income line at which they pay income taxes. Taxes are not a good thing, but making enough money to pay taxes is. Unless people are paying at least a nominal rate of taxes, they will feel no compunction to support the sorts of policies that reduce the need for taxes in the first place. From what they can see in the immediate horizon, at least, they are not at all invested in the health of the private economy, but instead are invested in the idea of bigger government — because bigger government now costs them nothing, and probably subsidizes them directly.

Tim’s quote from Orrin Hatch was good:

“An increasingly smaller group of Americans is shouldering the burden for an increasingly larger group of Americans.”

This is a recipe for ultimate economic collapse.

Veronique de Rugy adds more at NRO. She notes massive empirical research that shows high levels of publicly held debt have the effedct of consistently lowering economic growth. She ends with a quote that itself contains a link to this paper. In that paper comes a line that restates my point: “What is fleeting in economics is politically popular, while what is enduring in economics is politically unpopular.” The author descrivbes this phenomenon as the “shortsightedness bias” inherent in politics. When a majority of the public freeloads, their short-sightedness bias will be in favor of more freeloading, more debt — and, against their long-term interest, less growth. That’s why tax rates should not be raised, but why the tax base must be widened.  Counterintuitively, the way to widen the base is to keep the rates low enough to promote the economic growth that lifts more people into income levels at which they pay taxes. And as more people pay taxes, deficits and debt start to decline. A government that encourages economic growth can therefore be a more stable government than one that tries to soak the rich. A broad tax base thus supports ordered liberty. High tax rates undermine it.

January 14th, 2011 at 6:41 pm
Gingrich Lays Down the Gauntlet for Restoring America’s Greatness

Love him or hate him, there is no denying that Newt Gingrich is the conservative movement’s best policy entrepreneur / political consultant / motivational speaker.  At today’s House Republican retreat, the former speaker laid down the gauntlet for restoring America’s greatness.

His speech before the new House majority framed the multiple crises facing the country in positive terms; calling for every full and sub-committee to designate 1/3 of their hearings to the theme of “Hope and Opportunity.”  The idea is to focus on solutions to America’s problems, such as inviting job creators to speak before committees on what they need government to do – or not do – to get America working again.

Most interesting to this writer is Gingrich’s call to redirect the 99 weeks of unemployment payments into a human capital program.  It would require recipients to enroll and complete job training programs, effectively turning welfare into workfare.  Moreover, the explosion of online education makes finding the right program easy to find and flexible to complete.  In today’s tech-heavy, certification-obsessed economy, tying the $133 billion spent on unemployment payments to job training is a great way to get out-of-work Americans on and off the welfare rolls as quickly as possible.

As a former radio spot writer for Gingrich Communications, I’ll admit I’m partial to Newt’s way of thinking.  The former speaker’s speech to the House GOP shows why.  With conservatives unlikely to move any major legislation due to Democratic control of the White House and Senate, Gingrich is proposing – I believe – the next best thing: changing the discussion from “the party of no” to “the party that restores American Exceptionalism.”

Let’s get to it.

May 17th, 2010 at 8:03 pm
California: No Fruits, Just Nuts

From California Governor Arnold Schwarzenegger’s press conference unveiling his budget proposal amidst a $19.1 billion deficit:

“California no longer has low-hanging fruits – we don’t have any medium-hanging fruits, and we also don’t have any high-hanging fruits,” Schwarzenegger said, explaining the cuts Friday at a news conference in Sacramento. “We have to take the ladder from the tree and shake the whole tree.”

And no, he wasn’t making a Steve Miller Band reference.  (At least, I hope not.)

Though Sacramento’s spending commitments must be addressed, it’s interesting that the governor targeted eliminating the welfare-to-work program known as CALWorks, along with certain child care funding.  For their part, Democrats are wailing for a delay in scheduled corporate tax breaks.  As if further depleting business capital is the answer to balancing the state’s budget.

There are no easy, “comprehensive” answers for reforming California’s budget crisis.  But there is a better place to start the discussion: suspend AB 32, Schwarzenegger’s signature global warming bill.

In fact, that’s the name of a group making the case that since California is responsible for – at most – 1.4% of the world’s greenhouse gas emissions, AB 32’s severe, self-imposed restrictions amount to a jobs killer.  The group estimates that when fully implemented, AB 32 will cost the state 1.1 million jobs, the average family $3,857, and each small business $49,691.

The net result?  “Devastated budgets of California social services agencies through massive losses in tax revenue.”

Granted, suspending AB 32 would be largely symbolic, but if Schwarzenegger took the ax to his prized “green” bill, he could chalk it up to serious times calling for serious budgets.  When times are good, economies can afford to absorb major public investments on microscopic returns.  These are not those times.  Californians have needs and wants; it’s past time the state’s nutty politicians understood the difference.