Posts tagged with: welfare state

An Italian friend of mine recently complained to me while painfully witnessing the climax of the Italian debt crisis: “Cosi Berlusconi, cosi l’Italia!” (As with Berlusconi, so too with Italy!).

My friend’s comment was an allusion to the Italian Prime Minister’s personal responsibility in dragging the entire Italian nation down with him. News broke late on Wednesday that Berlusconi had agreed to step down from office, as he effectively admitted his 17 years of political power had done nothing more to fix a broken system and as more members of his loose PDL coalition defected to centrist parties.

Even with the likely passing of the European Union fiscal reform measures designed to control Italy’s reckless public spending, it all seems too little too late.

With Berlusconi’s suprise announcement and Italy teetering on national debt default, the European stock markets tumbled late Wednesday. Logically, my friend then said, “Vedi? E cosi anche l’Europa” (See? And so too with Europe).

The domino effect is becoming a real potential. It is frightening. It is downright disturbing for anyone living and trying to survive in Europe. Still, we have to be careful of where we start pointing fingers.

My friend’s Berlusconi = Italy = Europe linear equation is not necessarily totally inaccurate.

The Italian Premier actually deserves some of the blame. For instance his center-right coalition government did recently raise capital gains taxes (from 10 to 20%!) along with corporate, personal income and VAT. This has further scared off the few serious local and foreign investors left in Italy and has sparked greater passion for the national pastime: tax evasion. This is the worst time to be raising taxes when economic growth is so wobbly at home. Berlusconi is an entrepreneur himself. He should know better. It is a total mystery why his business-friendly government is caving into Keyensian economic rebuilding.

All said, Italy and Europe is not a one-man disaster. Nor even a one-party disaster.

Italy’s national debt crisis is, above all, a crisis of national character – an Italian character that has become softened while shedding off its once great virtues of resilience, fortitude, integrity, self-reliance and innovation, just as we have seen in a paradigmatic shift in character with the rise of the modern Western European welfare states (watch Acton Media Director Michael Miller’s Acton Lecture – The Victory of Socialism, where he explains why socialism counts on citizens’ progressive external dependency on institutions and a loss of personal virtue).

France, Spain, Britain Germany Greece, Portugal, Belgium, Denmark. Take your pick: all have lost many of these same virtues of character in varying degrees. The Great Generation of post-World War II Europe is now too old to play the part of come-back hero.

No matter how great a vision or “business plan” the entrepreneurial Berlusconi had for Italy since the mid-1990s, no amount of collective cultural effort was ever possible when his country and Continent has lost its spirit of freedom and independence from big government and generous public programs.

National debt, while symptomatic of unsuccessful political regimes, is more the result of a national deficit of values and virtue.

Acton’s tireless director of research Samuel Gregg has a post up at NRO’s The Corner in reaction to yesterday’s bad poverty numbers (46.2 million Americans live below the poverty line now—2.6 million more than last year). Gregg is ultimately not surprised about the increase, because not only does the American welfare state produce long term dependence on governmental support, but the huge debt incurred by poverty programs tends to slow economic growth.

It is now surely clear that the trillions of dollars expended on welfare programs since the not-so-glorious days of the 1960s have not apparently made much of a dent in significantly changing the ratio of Americans in poverty.

In some instances, America’s welfare apparatus may have prevented some people (especially the elderly) from falling into abject poverty. There is, however, very little evidence that it has helped millions of people out of relative poverty. There is also plenty of data to indicate that many welfare programs have produced intergenerational dependency on the state—a point that even Bill Clinton seemed to have grasped by the mid-1990s.

Gregg then warns against the temptation to double down on government-as-the-answer, arguing that we don’t have the fiscal leeway to experiment as we did in the 1960s.

We need to keep these serious failures of America’s welfare state in mind because these new poverty numbers will almost certainly be used as an argument by some people of good will (as well as those whose motives are far less noble) to resist any reductions in welfare spending, despite America’s far-from-healthy debt and deficit situation. Yet the sheer size of government spending on entitlement programs (by far the biggest item in the federal government’s budget) makes cuts in these areas inescapable if—I repeat, if—our political masters are serious about wanting to balance the government’s books.

Indeed, such cuts are assuming an ever-increasing urgency in light of the studies which continue to appear indicating that crushing levels of public and government debt run the risk of significantly impeding growth. That’s worrying, not least because a slowdown in growth will hurt those in poverty far more than the wealthy. Strong growth rates are one of the most powerful antidotes to poverty – just ask anyone living in mainland China or India. More welfare spending is simply not the answer.

Full post here.

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Protect the Poor, Not Poverty Programs

By John Couretas

One of the disturbing aspects of the liberal/progressive faith campaign known as the Circle of Protection is that its organizers have such little regard – indeed are blind to — the innate freedom of the human person.

Their campaign, which has published “A Statement on Why We Need to Protect Programs for the Poor,” equates the welfare of the “least of these” in American society to the amount of assistance they receive from the government — a bizarre view from a community that trades in spiritual verities. Circle of Protection supporters see people locked into their circumstances, stratified into masses permanently in a one-down position, thrown into a class struggle where the life saving protection of “powerful lobbies” is nowhere to be found. And while they argue that budgets are moral documents, their metrics for this fiscal morality are all in dollars and cents.

Not only does the Circle of Protection group appear to be oblivious to the power of private charity and church-based outreach to the needy, but they seem to have no hope for the poor outside of bureaucratic remedies. This is a view of the human person not as a composite of flesh and spirit, but as a case number, a statistic and a passive victim of the daily challenges and troubles that life brings.

In response to the Circle of Protection campaign, another faith group has formed with a very different outlook on the budget and debt debates that will consume the political energy of the country in the months ahead. Christians for a Sustainable Economy (CASE) argue for policies that are focused less on protecting poverty programs and more on protecting the poor (I am a supporter). In a letter to President Obama, CASE wrote:

We need to protect the poor themselves. Indeed, sometimes we need to protect them from the very programs that ostensibly serve the poor, but actually demean the poor, undermine their family structures and trap them in poverty, dependency and despair for generations. Such programs are unwise, uncompassionate, and unjust.

This is what Fr. Peter-Michael Preble was getting at when he observed that “… the present government programs do nothing but enslave the poor of this country to the programs and do nothing to break the cycle of poverty in this country.” This is not, he added, an argument to eliminate all government assistance but rather for “a safety net and not a lifestyle.”

In discussing the relative merits of the Circle of Protection and the Christians for a Sustainable Economy campaign, Michael Gerson wrote that “the Circle’s approach is more urgent.” Arguing against “disproportionate sacrifices of the most vulnerable,” he asserted that “public spending on poverty and global health programs is a sliver of discretionary spending and essentially irrelevant to America’s long-term debt.”

It’s a big and growing “sliver.” According to a Heritage Foundation study of welfare spending, of the 70-odd means-tested programs run by the federal government, “almost all of them have received generous increases in their funding since President Obama took office.” The president’s 2011 budget will increase spending on welfare programs by 42 percent over President Bush’s last year in office. Analyst Katherine Bradley observed that “total spending on the welfare state (including state spending) will rise to $953 billion in 2011.”

Instead of more billions for failed poverty programs, CASE argues that “all Americans – especially the poor – are best served by sustainable economic policies for a free and flourishing society. When creativity and entrepreneurship are rewarded, the yield is an increase of productivity and generosity.” Underlying this is a belief that the human person is able to freely and creatively anticipate what life may bring, rather than wait around for a caseworker or a Washington lobbyist to intervene.

That freedom explains why some people, even in difficult economic times, can move up the income scale despite assertions that they are among the “most vulnerable.” A U.S. Treasury study showed that “nearly 58 percent of the households that were in the lowest income quintile (the lowest 20 percent) in 1996 moved to a higher income quintile by 2005. Similarly, nearly 50 percent of the households in the second-lowest quintile in 1996 moved to a higher income quintile by 2005.” In an analysis of income inequality and social mobility, economist Thomas Sowell wrote that there is a confusion “between what is happening to statistical categories over time and what is happening to flesh-and-blood individuals over time, as they move from one statistical category to another.”

Income mobility is debated endlessly by economists, but it is the existential reality for countless Americans who have ever strived for something better — or suffered a setback in their hopes. Yet the one sure thing that will stifle this mobility is an economy in decline, with job creation slowed, and encumbered by ever higher federal budget deficits and debt. And that’s what we’ll get more of if the Circle of Protection’s prescriptions for a “moral budget” hold sway.

When economic systems break down, as they are now unraveling in some European welfare states, those who will be hurt first and hardest will be the poor, the working family living from paycheck to paycheck, the pensioner – those operating at the margins. If we fail to come to grips with the reality of our potentially ruinous fiscal trajectory, we will all learn, as other countries are now learning, what “truly vulnerable” means.

Mark Tooley has an excellent write up over at FrontPage about religious left figures staging martyr like arrests in defense of tax increases, unsustainable deficit spending, and the welfare state. Here are some details provided by Tooley:

Religious Left officials on July 28 successfully sought arrest for “faithful civil disobedience” in the U.S. Capitol Rotunda to protest any consideration of limits on the Welfare and Entitlement State. They were also demanding tax increases. Unlike more courageous and spiritually insightful fellow believers imprisoned in Iran, China, and North Korea, these U.S. activist prelates were presumably arrested, booked, bonded and released back to their nearby air-conditioned offices in time for posting fresh news releases.

Arrestees included United Methodism’s chief lobbyist Jim Winkler; former United Church of Christ President Paul Sherry; and multi-faceted Bob Edgar, himself an ordained United Methodist, former NCC general secretary, former Democratic congressman from Pennsylvania, and now chief of the liberal advocacy group Common Cause, the secular chief organizer of the “prayer” witness at the U.S. Capitol.

In a previous post, I pointed out the fact that just one example of government becoming so mammoth is that it now has self-appointed clergy over a flock of bureaucracy. They are declaring the bureaucracy sacred. Tooley’s use of “photo-Op” and “martyrdom” in the title of the piece is entirely appropriate and fully exposes the sadness and hollowness of staging civil disobedience for a broken and bankrupt bureaucracy.

For these mostly white and aging baby boomers, trying to recreate the courage of the civil rights movement of the 1950s and 1960s is foremost. However, it will never be actualized by defending a broken system and by looking to the failed policies of the past. One of the strengths of Dr. Martin Luther King was borrowing from the richness of the American narrative history of freedom and Scripture and using it to expose the weakness of a bankrupt system of injustice that was of the past. Bankrupt is bankrupt.

At least from their perspective, these budget busting pastors will keep evangelizing and suffering for more government as faithfully as those who toil for the souls of the lost in mission fields.

The European Union’s finances are in a dismal state, and are requiring governments to revaluate the “welfare state.”  Samuel Gregg articulates in his article appearing in The American Spectator, “Europe’s Not-So-Revolutionary Youth,” that a youth movement called les indignés or los indignados, depending on where you are, is resisting the reforms being proposed:

This time, however, things are different. With barely-disguised reluctance, governments across Western Europe are proceeding with relatively minor reforms aimed at reducing the European welfare state’s costs. But les indignés are protesting not only the pain of change — they also clearly resent the changes themselves.

Of course there’s an anarchist fringe to these youth protests — the ski-masked individuals who routinely join any demonstration to exult in the joy of physical violence against police and random destruction of private property. But by and large, the indignant ones want exactly what their parents and grandparents regard as their birthright: not-too-exacting jobs-for-life, free health-care, state-guaranteed minimal-incomes, six weeks paid annual vacation, early-retirement, and generous state-provided pensions.

In other words, they want Social Europe. Los indignados don’t, however, apparently comprehend just how much this economic system has contributed to their present plight.

Gregg further explains that while the youth are fighting for a return to the status-quo in Europe, demographic trends undermine their case:

Many young Europeans are also remarkably unaware that Europe’s demographic trends are further tilting the scales against them. The below-replacement birth-rates prevailing in almost every European nation will result in the proportion of active workers to retirees across the EU shifting over the next twenty-five years from a 2:1 ratio to a 1:1 ratio.

This makes it unlikely that even present reforms, such as raising retirement ages, can forestall an eventual implosion of Europe’s welfare states — a process that, at present rates, will be underway long before les indignés come even close to receiving their first state-pension check.

Nor do los indignados appear to realize that any chance they might have to force through liberalizing economic reforms via democratic means is weakening by the day.

The same demographic developments that will severely compromise their financial prospects are also reducing young Europeans to the status of a minority in the world’s most rapidly aging continent. This progressively diminishes their ability to out-vote Europe’s millions-strong (and growing) gerontocracy who, AARP-like, appear quietly content to live off their children’s future.

Los Indignados should be angry about the present situation they are faced with. However, a return to the status-quo fails to acknowledge that it is the status-quo that put Europe in its current financial hardship. Instead, los indignados should be fighting for more dramatic change moving Europe away from the welfare state.

Click here to read the full article.

Writing in the Sacramento Bee, Margaret A. Bengs cites Rev. Robert A. Sirico’s Heritage Foundation essay “The Moral Basis for Economic Liberty” in her column on faith communities and government budget battles.

As a priest, Sirico has met many entrepreneurs “who are disenfranchised and alienated from their churches,” with often little understanding by church leaders of the “vocation called entrepreneurship, of what it requires in the way of personal sacrifice, and of what it contributes to society.”

This lack of understanding, he believes, is due to the collection basket economic model which “tends to foster a view of the economic world as a pie that needs to be divided.” The entrepreneur, instead, engages in producing wealth, not redistributing it.

“Entrepreneurs create jobs, reduce human suffering, discover and apply new cures, bring food to those without, and help dreams become realities,” he says. In contrast, “the welfare state is too often thought of in morally favorable terms, but its social consequences, however well-intended, can be largely damaging.”

Read “Putting faith in economics to help the poor” in the Sacramento Bee.

Also see Acton’s Principles for Budget Reform and download the free “What Would Jesus Cut … from the Constitution” poster.

The Detroit News published Dr. Don Condit’s Acton commentary on Accountable Care Organizations (ACOs) in today’s paper. The ACOs are designed to manage costs under the Patient Protection and Affordable Care Act, better known as Obamacare.

Medicare beneficiaries will be “assigned” to 5,000 patient-minimum organizations to coordinate their care. While HHS Secretary Kathleen Sebelius talks about improvement in care, the politically poisonous truth is that Medicare is going broke and ACOs are designed to save money.

The words “rationing” or “treatment denial” or “withholding care” are not part of her press release, but reading the regulations reveals intentions to “share savings” with those who fulfill, or “penalize” others who fall short of, the administration’s objectives. The administration’s talking points include politically palatable words that emphasize quality improvement and care enhancement when the real objective is cost control by a utilitarian calculus.

Physicians and other health care providers will find themselves in conflict with the traditional ethos of duty to patient within ACOs. Doctors will face agency conflicts between the time honored primary duty to patient. Medical care providers will receive incentives for controlling spending, and penalties if they do not. “No one can serve two masters” (Matthew 6:24); not even physicians.

Read “Obamacare rules belie compassion, care” on the Detroit News website.

Jim Wallis: Paul Ryan is A Bully & Hypocrite

Not so long ago, the Rev. Jim Wallis was positioning himself as the Chief Apostle of Civility, issuing bland pronouncements about all of us needing to get along. His “A Christian Covenant For Civility,” barely a year old, is now looking more tattered than a Dead Sea Scroll. Of course, he took up the civility meme back when he was hoping to brand the Tea Party as a horde of un-Christian, poor-hating libertarian bullying racists who enjoy nothing more than kicking widows and orphans with their hobnailed jackboots. Here he is last year warning America about the hostile Tea Party threat: “Honest disagreements over policy issues have turned into a growing vitriolic rage against political opponents, and even threats of violence against lawmakers are now being credibly reported.”

Ah, but the Apostle of Civility fled the agora. Right about the time that the vicious and violent attacks started on elected officials like Wisconsin Gov. Scott Walker and Michigan Gov. Rick Snyder. It’s routine anymore to hear thuggish threats at state capital protests such as, “The only good Republican is a dead Republican” — and worse. (see video at bottom of post but be warned: rough images and language.)

Now, Wallis has returned, wearing the robes of an Old Testament Prophet, the scourge of those who would oppress the poor and bargaining unit members in threatened civil service classifications. The tip off was the title of his latest Huffington Post article, “Woe to You, Legislators!” Nice touch, that. More, from Wallis, who channels Isaiah:

You may think that my language sounds too strong: “bullies”, “corrupt”, “hypocrites.” But listen to the prophet Isaiah:

“Doom to you who legislate evil, who make laws that make victims — laws that make misery for the poor, that rob my destitute people of dignity, exploiting defenseless widows, taking advantage of homeless children. What will you have to say on Judgment Day, when Doomsday arrives out of the blue? Who will you get to help you? What good will your money do you?” (Isaiah 10:1-3, The Message)

Ryan’s budget seems to follow, almost line by line, the “oppressive statues” Isaiah rails against. Ryan’s budget slashes health care for the poor and elderly by gutting Medicaid and undermining Medicare, and cuts funding for food stamps, early childhood development programs, low-income housing assistance, and educational programs for students.

Phrases such as “gutting Medicaid” are not designed to inform, but to inflame. This is the work of a demagogue. (more…)

The American Spectator published a new commentary by Acton Research Director Samuel Gregg. The commentary was also picked up by RealClearReligion.

Christians in a Post-Welfare State World

By Samuel Gregg

As the debt-crisis continues to shake America’s and Europe’s
economies, Christians of all confessions find themselves in the
unaccustomed position of debating the morality and economics of
deficits and how to overcome them.

At present, these are important discussions. But frankly
they’re nothing compared to the debate that has yet to come. And
the question is this: How should Christians realize their
obligations to the poor in a post-welfare state
world?

However the debt-crisis unfolds, the Social
Democratic/progressive dream of a welfare state that would
substantially resolve questions of poverty has clearly run its
course. It will end in a fiscal Armageddon when the bills can’t be
paid, or (and miracles have been known to happen) when political
leaders begin dismantling the Leviathans of state-welfare to avert
financial disaster.

Either way, the welfare state’s impending demise is going
to force Christians to seriously rethink how they help the least
among us.

Why? Because for the past 80 years, many Christians have
simply assumed they should support large welfare states. In Europe,
Christian Democrats played a significant role in designing the
social security systems that have helped bankrupt countries like
Portugal and Greece. Some Christians have also proved remarkably
unwilling to acknowledge welfarism’s well-documented social and
economic dysfunctionalities.

As America’s welfare programs are slowly wound back, those
Christian charities who have been heavily reliant upon government
contracts will need to look more to the generosity of churchgoers
– many of whom are disturbed by the very secular character assumed
by many religious charities so as to enhance their chances of
landing government contracts.
(more…)

Blog author: hunter.baker
posted by on Sunday, April 3, 2011

While visiting my grandmother’s home for her 95th birthday a little evening television surfing brought us to House Hunters International. We observed with fascination as a couple living in New Orleans worked toward their move to the French countryside.

The husband was a professional trumpeter apparently making money on the side as a carpenter. The wife was identified as a dancer of some sort. While we heard the husband pop out a few bars of When the Saints Come Marchin’ In on a couple of occasions, the wife did not provide any sort of evidence of her spinning and twirling chops. They had a young son and seemed to have a friendly community of pals in the Big Easy.

During the episode, we discovered that the wife was French and that was part of the motivation for making the move to France, but the big draw, enthusiastically embraced by the husband, was that “Everything is free there!” He went on to mention health care as an example.

The first thing that comes to mind is that this young fellow needs an immediate short course in Robert Heinlein’s TANSTAAFL (There Ain’t No Such Thing as a Free Lunch). Someone is paying, my friend. Now, maybe it’s a rich guy. I don’t know. Does the rich guy owe this couple free healthcare? Or then again, maybe they will pay for it after all. Maybe they’ll pay in taxes. Maybe they’ll pay in other ways than money. Maybe they’ll pay with things like time and DMV-style inconvenience.

The second thing that occurs to me is that policymakers in France can’t be very happy with developments like this. A young couple with no certain way to make a living is moving to their country to take advantage of “free” things like healthcare. THAT’S GREAT NEWS!

The word “sustainability” applies to things other than the environment. :-)