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Archive for the ‘Welfare’ Category

I recently posted on Facebook about an article explaining how the current Welfare system actually keeps people in poverty.

The article is at:
http://www.theblaze.com/contributions/sorry-cnn-and-david-wheeler-but-a-basic-income-wouldnt-end-poverty/

I asked friends to take a moment to read this and explained that if they would digest and understand this, they might never vote for a welfare advocating candidate again. In fact, if they realize that the one Trillion dollars we borrow every year to perpetuate the welfare state is also a direct tax on the poor – because the poor have to pay more for goods and services in the form of inflation due to artificial increase in the money supply – they’d realize that our current policy as a nation right now is literally insanity.

A friend wrote back saying he thought I was blaming poverty on the poor. He explained that he’s been able to lift his own family out of poverty through hard work.

I wrote him the following:

I’ve done the same thing in my life, although I didn’t have a family early and I relied on my parents instead of the government during the early years. The fact is that using government as a charity doesn’t make sense because government is just about the most inefficient charity on the planet. Much of the money goes towards overpaid bureaucrats and a lot of it also gets funneled back into progressive PACs and lobbying to sustain the current system of borrowing a Trillion dollars a year. The debt from doing this for just the past five years is going to hamper attempts at future prosperity for all Americans for decades, regardless of their income tier.

Seven of the richest 10 counties in the U.S. surround Washington D.C., and it’s directly related to federal bureaucratic positions:
http://www.washingtonpost.com/local/seven-of-nations-10-most-affluent-counties-are-in-washington-region/2012/09/19/f580bf30-028b-11e2-8102-ebee9c66e190_story.html

The top political donors of the past 25 years have been almost entirely Democrat instead of Republican, and much of the money has been recycled government money being channeled to progressive groups who make a living off of some of the money and funnel the rest back into PACS and lobbying. Note that the Koch brothers are number 59 on the list, despite the current Democrat talking points trying to blame all conservative voices on them. Note also that none of the top 16 donors of the past 25 years have been Republican:
http://www.opensecrets.org/orgs/list.php

The problem has gotten so bad that we now have a situation where only 86 million full time private workers are supporting 148 million benefits receivers in our nation. That’s a ration of 1:1.7, each worker supporting almost two benefits receivers:
http://www.cnsnews.com/commentary/terence-p-jeffrey/86m-full-time-private-sector-workers-sustain-148m-benefit-takers

In fact, the U.S. spends/borrows enough each year to outright eliminate poverty, but because of government inefficiency and because of the way poverty is measured, no one is ever removed from the roles of poverty despite this spending. We’re not even making a dent in people’s lifestyles.
http://www.forbes.com/sites/timworstall/2012/09/13/if-the-us-spends-550-billion-on-poverty-how-can-there-still-be-poverty-in-the-us/

….People are not lifted out of poverty by money in society, but by goods and services. People benefitting from government welfare are not producing goods and services. And people in the government running the welfare apparatus are providing very little goods and services for society in terms of helping the truly needy. Most of their efforts simply consume the fruits of people who are working in the private sector and go towards perpetuating the system. It would be much more efficient and cost effective to return these bureaucrats to the private sector where they could produce real goods and services and to simply have something like a computer route government aid to the truly needy that qualify for a safety net. This would benefit everyone.

Neither the people on the roles of welfare nor almost all of the welfare bureaucracy in Washington D.C. are contributing goods and services to society. That is a significant part of the equation of our current economic stagnation. A meaningful percentage of the population is only consuming.

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