Federal welfare programs give freely and demand little

Americans, it is said, are the most generous people in the world. We give to our friends and neighbors and fellow countrymen when they need help, of course, but we also help those who live thousands of miles away in other countries.

We are quick to provide a “hand up” to Americans in need, to help them over rough spots and get them back on their feet so that they can then take care of themselves. There are those who for various reasons are unable to help themselves, and we don’t mind continuing to provide assistance for them.

The hand up is sometimes called a “safety net,” a device to save those truly in need from falling into despair. But for many the safety net has turned into a hammock, no longer a device to help out in an emergency or time of trouble, but an easy way of life for those who would rather let others provide for them than provide for themselves.

This is sometimes a matter of availing themselves of a good opportunity, while at other times it is a matter of culture: Far too many Americans have been taught through actual experience that it is not so difficult to live off the government and charitable interests.

A friend taught a class in the 80s in a junior high school whose student body had a not-so-good reputation for academic achievement. He told the story about his first six-week grading period, using a grading system that was designed to reward honest effort as much as a grasp of the subject matter to get a passing grade. Of the 37 students in his class, half failed; only a few earned decent grades.

When he asked them how they were going to survive after they grew up and were on their own, if they were unable to get a passing grade in a class designed to guarantee passing if you just made an honest effort, one of the students said: “Well, Mr. Smith, I’m going to do like my parents: be on welfare.” That career choice surprised him, and so did the agreement of many of the other students.

This situation, mirrored in towns and cities across the nation, is the result not of the “hand up” efforts of caring Americans, but of hammock-like government welfare programs, which give much but demand little.

President Lyndon Johnson declared a War on Poverty in the January 1964 State of the Union address. “This administration today, here and now, declares unconditional war on poverty in America,” Johnson stated.

His actual stated goal was not to prop up living standards artificially through an ever-expanding welfare state, but instead to strike “at the causes, not just the consequences of poverty.” Ultimately, he wanted “not only to relieve the symptom of poverty, but to cure it and, above all, to prevent it.” A noble goal, as so many government initiatives are, at least at first.

Twenty years ago, another president pledged to “end welfare as we know it.” On August 22, 1996, President Bill Clinton filled a campaign promise by signing welfare reform, the Personal Responsibility and Work Opportunity Act, into law.

This time there were new wrinkles: after two years of receiving benefits, welfare recipients would be required to work, and incentives were removed that encouraged having children out of wedlock and breaking up families to get benefits. There was also a five-year lifetime limit on total time of receiving benefits without working.

How have these programs worked out? Familyfacts.org reported in 2012, “Total federal and state welfare spending has increased more than 16-fold since 1964. Even since the 1996 welfare reform replaced Aid to Families with Dependent Children (AFDC) with the Temporary Assistance for Needy Families (TANF) program, spending has increased by 76 percent and by more than 20 percent since 2008.”

President Obama, the Washington Examiner reports, “took the Great Recession as an opportunity to get as many households as possible into the food stamp program, an important part of his stimulus package. One result was that the number of able-bodied adults with no children who receive food assistance doubled.”

Because the value of food stamps and welfare payments are looked at as income, the overall poverty rate has not changed much since the War on Poverty began. However, both the number of Americans on welfare and total welfare spending have soared.

The goal should be to reduce both poverty and welfare spending. Two states, Kansas and Maine, have implemented a requirement for able-bodied childless adults to work for food-stamp benefits, and the results are impressive.

In Maine, 80 percent of those affected by the requirement left the food stamp program, and in Kansas, the total of those affected dropped 75 percent very quickly, and 60 percent had work within a year, according to the Examiner.

When it was easy to stay home and collect food benefits, many were happy to do so. But when required to work, these recipients quickly got out of the hammock and went to work, abandoning government support.

People are often content to do as little as possible, but will do what they must.

America’s tendency toward over-spending leading to catastrophe

Many years ago Beatle John Lennon compared America to Rome. Some interpreted his statement as being complimentary, that America was like the Roman Empire in its glory days: the place to be. Others took it to mean that like Rome’s eventual fate, America was declining and headed for the dustbin of history.

As it turns out, both interpretations were correct, depending upon the time frame of the analysis. From its early days America was a bright spot in the world, becoming a leader in many areas and doing things never done before. The rise of the hippie movement of the 60s and 70s spawned the flower children that viewed the U.S. as tarnished and wicked. And since then, particularly in recent years, America has been transitioning to resemble Rome’s decline. Perhaps a more accurate comparison for 2015 is Greece, where out-of-control spending is about to kill the nation.

There is a steady record of troubling statistics that U.S. presidents and Congresses have negligently ignored. For example, in 1971 the federal debt was $348 billion, about 34 percent of GDP, but today it is about $18 trillion, and is more than 100 percent of GDP. This trend caused Standard and Poor’s to downgrade America’s credit rating in 2011.

Federal assistance program payments have risen from about 21 percent of GDP in the 1970s to about 70 percent today. The Supplemental Nutrition Assistance Program in 2008 cost $37.6 billion, but by 2012 totaled $78.4 billion.

The 2014 Index of Culture and Opportunity, published by the Heritage Foundation, reports how food-stamp participation has soared from 2003 to 2013, growing by more than 26 million people. In 1970, the number receiving food stamps was well below 10 million, growing to more than 20 million by 2003, and nearing 50 million by 2013. The index also shows that total welfare spending has climbed by $246 billion between 2003 and 2013. In 2014 the federal government operated more than 80 means-tested welfare programs that provide cash, food, housing and medical care to poor and low-income Americans.

Heritage’s Robert Rector notes that government spent $916 billion on these programs in 2012, and roughly 100 million Americans – nearly one in three – received aid from at least one of them, averaging $9,000 per recipient.

Many will see the increase in these numbers as necessary support from the government for Americans in trouble. Some do truly need help, but many are simply availing themselves of easy money.

Government policies and actions have kept the economy stagnant since the recession of 2007, preventing job creation that would allow millions to provide for themselves, or at least to contribute to their own wellbeing. More than 93 million Americans desiring work – nearly one in three – are not in the labor force. These policies and actions are championed by politicians, many of whom subscribe to the same socialist ideals that are killing Greece, and who benefit from having large numbers of individuals and organizations depending upon them for their survival.

And, the common theme of government wreaking havoc by interfering with business economics rises to the fore, yet again.

One example of a foolish policy is when Obamacare reduced the number of hours of the full-time workweek from 40 to 30 in an attempt to force employers to cover some part-time workers. This resulted in thousands of full-time workers becoming part-time workers, who lost 11 hours of pay a week, as businesses suddenly faced massive new expense and were forced to counteract that by reducing the number of full-time employees by cutting their hours.

Had the leftists that threw together Obamacare in the dark, smoke-filled rooms of the Capital actually thought about what they were doing, they could have avoided some of the punishment they caused these workers. No doubt that thousands of those workers now qualify for government support as a result.

Ignoring the wisdom of not raising the minimum wage, Seattle, Washington raised its minimum wage to $11 an hour in April. And guess what? Some of the workers who benefitted from the increase are now complaining that since they are making more money they will lose their housing subsidy, and are asking to have their hours reduced so that they can keep the free money flowing. Seattle’s minimum wage is scheduled to rise to $15 an hour by 2017.

The American tradition of self-reliance, of working to improve one’s plight, has been replaced by the opportunity to benefit from “free money” from government.

“If we keep on this way, we’ll reach a tipping point where there are too many people receiving government benefits and not enough people to pay for those benefits,” Rep. Paul Ryan (R-Wis.) wrote in The Wall Street Journal. Currently, about half of Americans pay no income taxes. “That’s an untenable problem. The receivers cannot receive more than the givers can give.”

The politics of government largesse and the sensible policy of holding individuals and institutions responsible for their actions, the tradition of self-reliance upon which America became the wondrous nation it used to be, are inalterably opposed. The question is, how much more of this dependency can the country survive before it becomes a Greek tragedy?

Government is a poor mechanism for correcting societal problems

Most Americans think that helping truly needy people, whether they live here or in some other country, is a worthy objective. Looking at charitable contributions as a benchmark, Americans are the most generous people in the world, giving $316.23 billion to charitable organizations in 2012, about 2 percent of GDP, according to Charity Navigator, and preliminary figures for 2013 indicate a significant increase to $328 billion.

Double those numbers and it still would not be good enough for the federal government, which believes that if private sources don’t relieve every semblance of suffering for every single suffering American, the government must step in and do the job better.

Except that government can’t do it better, never has, and never will.

Government’s failure to achieve better results than normal people doing what normal people do has never been a deterrent to wasting billions of taxpayers dollars in a futile effort to try one more time to do so.

The most notorious failure was Lyndon Johnson’s “War on Poverty” which began 50 years ago in Mr. Johnson’s State of the Union message. From the beginning of the war on poverty until 2013, local, state, and federal spending on welfare programs totaled $16 trillion, according to data from the U.S. Census Bureau. Currently, the United States spends nearly $1 trillion every year to fight poverty.

When the War on Poverty began, 33 million Americans were in poverty and the poverty rate was 19 percent. Today, approximately 46.5 million live in poverty and the poverty rate is 15 percent. Even though the poverty rate is lower than 50 years ago, because our population is much larger now than then, more people are poor today than in 1964. We have fought a long and expensive fight, and lost. Yet we still fight on.

President Barack Obama’s cause du jour is income inequality, and it’s significant other, the minimum wage. And now that “reforming” the best healthcare system in the world is well underway, he wants to declare war against income inequality.

In no free or relatively free economic system can there be income equality, for two reasons. First, inequality is a fundamental part of life. Some people sing better than others. Some are better athletes than others. And some people make more money than others, and that’s because some people are better at their job than others and deserve higher pay, and some jobs require more skill and training than others, and pay better.

So, like poverty, another area that will always exist, we will always have income inequality.

Far more important, however, is whether there is the opportunity to move up from the lower income levels, and that is an area that has been fairly stable, according to The New York Times, which reported last month that “the odds of moving up — or down — the income ladder in the United States have not changed appreciably in the last 20 years….”

That means that people in the lowest quintile are not condemned to stay there, and people in the top quintile are not guaranteed to stay there, and there is substantial movement in and out of all quintiles.

It’s a favored piece of envy politics that the rich get richer and the poor get poorer. But the data tell a different story. From 1967 to 2009, the real mean household income increased for every quintile, which means the poor became richer, not poorer. Americans in poverty could afford more goods and services in 2009 than in 1967, according to U.S. Census Bureau data.

Other factors, like where people live, have an effect. Harvard University’s Raj Chetty reported “the probability that a child reaches the top quintile of the national income distribution starting from a family in the bottom quintile is 4.4 percent in Charlotte but 12.9 percent in San Jose,” and factors such as better primary schools and greater family stability also aid upward mobility, he wrote.

Larry Kaufmann, senior advisor at Pacific Economics Group, discussed findings of the Pew Charitable Trust, which showed that “Half of children born to parents with bottom-third income levels experience upward relative mobility when the parents remain continuously married; the figure falls to 26 percent when this is not the case,” he wrote.

The Pew study shows that the poverty rate among married couples is only 6 percent, and among married couples who both have full-time jobs the poverty rate is practically zero. The poverty rate among single dads and single moms, however, is much higher: 25 percent for single dads and 31percent for single moms.

Investor’s Business Daily Senior Writer John Merline notes that income inequality has increased faster since Mr. Obama took office than under any of the three previous presidents, and that inequality is now greater than at any time since the Census Bureau started recording it back in 1947.

The message from this is that to assist folks in moving up the income ladder, Mr. Obama should replace his administration’s policies that impede economic recovery, and seriously encourage the restoration of family values among Americans. That would accomplish far more than making people think they are victims, and fomenting division among Americans.