Posts tagged with: Federal assistance in the United States

bloated uncle samHead Start doesn’t work. More people than ever are now on food stamps. Medicaid is staggering under the weight of its own bloat. Why are we continuing to fund bad programs?

This is what Stephen M. Krason is asking. Such programs keep expanding:

There has been a sharp increase in the food-stamp and Children’s Health Insurance programs. Obama has proposed more federal funding for Head Start and pre-school education generally, job training for laid-off workers, and Medicaid. In fact, the Affordable Care Act (“Obamacare”) has bloated the Medicaid rolls. He is even seeking free federally subsidized community college education. I have seen numbers ranging from 79 to 126 federal programs aimed at reducing poverty and an annual price tag of $668 to $927 billion.

The question is: are we getting our money’s worth? Krason says absolutely not. (more…)

i_heart_government_handoutsIt’s no secret that government entitlement programs have increased dramatically over the past few decades. It’s no secret that some would like to continue to expand such programs. And it’s no secret that America cannot afford to keep doing this, either economically or morally.

Nicholas Eberstadt tackles the issue of entitlement in “American exceptionalism and the entitlement state.” It’s a worthy read; I’d like to offer a few salient points.

Eberstadt begins by likening America to a transplant patient. The transplanted organ is healthy, but the patient is still really sick. America – the patient – has attempted to graft a foreign organ – the European welfare state. That transplanted organ is doing what it was designed to do, but it’s killing the patient nonetheless. (more…)

Blog author: ehilton
Tuesday, December 23, 2014
By

highpricesGrocery shopping is not a chore I enjoy. It’s a mundane task, and everything you buy you will have to soon replace. Then, when you finally get to the end of the chore, you look at the register and think, “HOW much??”

It gets worse.

You and I (American taxpayers) managed to “misspend” $2.4 billion this year on food stamps, now known as the Supplemental Nutrition Assistance Program (SNAP.)

How did we manage this? (more…)

basic-income-guaranteed-and-minimum-wage_thumb1For decades conservatives and libertarians have pondered ways to replace the defective American welfare state. One of the boldest and most controversial ideas is to simply give everyone a basic guaranteed income. Instead a variety of ad hoc welfare programs, people would simply be given cash.

Matt Zwolinski outlines an example proposal that includes an unconditional cash grant — no strings attached. Just give people cash and leave them “free to spend it, or save it, in whatever way they choose.” Zwolinski outlines a number of benefits we could gain by replacing welfare programs with a guaranteed income.
(more…)

“You are a slow learner, Winston.”
“How can I help it? How can I help but see what is in front of my eyes? Two and two are four.”
“Sometimes, Winston. Sometimes they are five. Sometimes they are three. Sometimes they are all of them at once. You must try harder. It is not easy to become sane.” – George Orwell, 1984

In a calculation that surely qualifies as “new math,” the government has created an equation in which $29,000 is equal to $69,000. Within the current welfare structure a single mother is better off making $29,000 per year in income and subsequent welfare benefits, than she is making $69,000 per year in income alone. This perverse incentive is what perpetuates the cycle of poverty and condemns impoverished moms to dependence on a paternalistic state. Social Security, Medicare, Medicaid, and SNAP (food stamps) are all larger than ever before with no subsequent reversal in the level or scope of poverty.

The “Welfare Cliff,” an economic model developed by Gary Alexander, the Secretary of Public Welfare in Pennsylvania, shows the amount of net income a person would need to receive in order to match their current net income plus welfare benefits. This is called a cliff, as there are drastic drop-offs in welfare benefits as one increases their income. In this graph, “the single mom is better off earning gross income of $29,000 with $57,327 in net income and benefits than to earn gross income of $69,000 with net income & benefits of $57,045.” In fact, if a single mother were to raise her income from $29,000 to just $30,000, she would lose nearly $10,000 in welfare benefits per year.

The incentives provided under this system replace the desire for individual development with the maintenance of the status quo.  A single mother is highly unlikely to spend the time, effort, or capital in order to gain skills that result in receiving a lower disposable income. (more…)

pills and billsWhile Michelle Obama grows vegetables in the White House garden, her husband’s administration grows every government program it can. At The Federalist, Sean Davis gives 12 reasons why Medicaid should not be expanded.

Since Medicaid is a health care program, we should see some improvements in American’s health, right? Not so, and this is Davis’ first reason why we should not consider expanding this program.

According to an extensive, randomized study of people who enrolled in Oregon’s 2008 Medicaid lottery, Medicaid doesn’t improve the health outcomes of its patients, even after controlling for major health predictors like income and pre-existing health status. The researchers tracked the health progress of people who were admitted into the program and who people who applied but did not get selected by the lottery. According to the researchers, one of whom helped craft Obamacare, while the program led to people using more health services, those services didn’t actually make them physically healthier…

(more…)

“Today’s welfare state is largely the construction of decades of liberal political activism,” writes James C. Capretta. “If it is failing, and there is strong evidence that it is in many ways, then that is a stinging indictment of the liberal governing philosophy more than anything else.” He argues for more conservative activism on the poverty problem, particularly in education.

An effective conservative critique of existing policies starts with the acknowledgement that a strong social safety net is a must in a modern, market-based economy, and that the safety net built here in the United States, though flawed, has contributed substantially to improving the conditions for the poor. The official measure of the poverty rate is completely misleading in this regard because it does not include transfer programs or the taxes people pay in the measure of income. So, in a very real sense, no matter how much the government spends, the official poverty rate remains unchanged.

But when tax and transfer programs are factored into the assessment, and when the consumption patterns of the poor are examined and not just their cash incomes, the picture changes quite dramatically. The panoply of governmental support programs—Medicaid, Food Stamps, the earned income tax credit, housing vouchers, school lunch programs, and many more—substantially raise the living standards of those who otherwise have very low incomes. (more…)

snapMichael Tanner of the Cato Institute released a recent policy analysis that raises important questions about whether or not we should completely re-conceptualize how to provide food for the truly disadvantaged. In “SNAP Failure: The Food Stamp Program Needs Reform” Tanner argues The Supplemental Nutrition Assistance Program (SNAP) is currently crippled by high administrative costs, significant fraud and abuse, and weakening of standards. Tanner notes that SNAP breeds greater dependence on government, and, even worse, seems to have negligible long-term effectiveness in eliminating food deficiencies for the truly disadvantaged.

The statistics are overwhelming. Using primarily government data, Tanner observes that the poverty is politicized in Congress through the framing of food stamps as fulfilling two separate goals—“improved levels of nutrition” and “strengthening the agricultural economy.” This created the “bipartisan” support that has exploded funding and served the interests of both political parties. Everybody wins, except for the poor. According to Tanner, “Since 2000, spending on SNAP increased from just $17 billion per year to more than $78 billion in 2012, a greater than fourfold increase.” The increase in spending cannot even be blamed on the recession. According to Congressional Budget Office (CBO) estimates, 35 percent of the program’s growth from 2007 to 2011 was not a result of economic factors in the country.

The factors that have created the expansion include:
(more…)

Blog author: jcarter
Wednesday, August 21, 2013
By

welfareIn eleven states in the union, welfare pays more than the average pretax first-year wage for a teacher. In thirty-nines states, it pays more than the starting wage for a secretary. And, in the three most generous states a person on welfare can take home more money than an entry-level computer programmer.

Those are just some of the eye-opening and distressing findings in a new study by Michael Tanner and Charles Hughes of the Cato Institute on the “work versus welfare tradeoff.”

“Welfare benefits continue to outpace the income that most recipients can expect to earn from an entry-level job, and the balance between welfare and work may actually have grown worse in recent years,” say Tanner and Hughes. “The current welfare system provides such a high level of benefits that it acts as a disincentive for work. Welfare currently pays more than a minimum-wage job in 35 states, even after accounting for the Earned Income Tax Credit, and in 13 states it pays more than $15 per hour.”

(more…)

It’s no secret that the number of people receiving food stamps in the U.S. has exploded in the past few years. Not only is it easier than ever to get food stamps, the government actively recruits people to sign up. Is there waste? Are your tax dollars being used wisely? Fox News thinks not.

In a recent series called “The Great Food Stamp Binge”, reporter John Roberts spent some time with a young, healthy surfer in California. His reason for being on food stamps? Watch and see.