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How many of America’s “poor” are like this lady and her husband?

How many of America’s “poor” are like this lady and her husband?

The way that many welfare recipients think was revealed in a call to a radio talk show on KLBJ-AM in Austin, Texas. Lucy, a 32 year-old married mother of three, whose parents also had been on welfare, said this about her situation:

“I just wanted to say while workers out there and people like you that are preaching morality at people like me that are living on welfare, can you really blame us?  I mean, I get to sit home, I get to go visit my friends all day, I even get to smoke weed, and people that I know that are illegal immigrants, that don’t contribute to society, we still going to get paid. Our check’s going to come in the mail every month and it’s going to be on time. And we get subsidized housing, we even get presents delivered for our kids at Christmas. Why should I work?”

“So you know what? You all get the benefit of saying, ‘Oh, look at me. I’m a better person,’ because you all are going to work. We’re the ones getting paid. So can you really blame us?”

Asked if her husband works, she said he does sometimes, but “he doesn’t really see the need for it.” Has she ever worked? “A couple of times.” Does she ever feel guilty about gaming the system and taking money other people have earned? “But you know, if someone offers you a million dollars, would you walk away from it? It’s easy to preach morality, and that’s the only reason why I called. It’s easy to say, ‘Well, yeah, you know, you’re making your living off of other people’s backs.’ But, you know, if somebody gave you a million dollars, and said that, here, you don’t got to work for it, no strings attached. Here, just take it, you can do whatever you want to do with it. You would take it, too.”

The host asked if she was calling in on an “Obamaphone” (a cell phone provided by the federal government) and she answered that she was. Then, when asked how much she received each month, she said she only pays $50 a month for rent that should be $600, so that’s $550, $425 in food stamps, $150 for her electric bill, and $100 on her water bill from the City of Austin. That comes to $1,225 a month, $14,700 a year, just less than the current federal minimum wage. Plus the cell phone.

She also said that when you are in government programs, “they are always coming to you and offering more programs,” and will even pay you to go to find out about where you can get more money. “They encourage you to stay on the programs.”

Asked if her money was cut off, would she get up every day and go to work, she said, “yes, I’d have to.”

This situation makes perfect sense to people like Lucy and her husband, who never learned the lesson that mature, responsible human beings make their own way in life, and who now live a relatively comfortable life without having to do anything to help themselves. They are a product of the failed War on Poverty for which we can thank President Lyndon B. Johnson (LBJ), the namesake of the radio station Lucy called. They are among a large and growing number of Americans being taught that the government will take care of them, and they don’t have to do well in school, or learn a trade, or look for a job, or do much more than draw breath.

Last year the Census Bureau reported that 46 million Americans were in “poverty.”  But how many of those are really poor and need some help, and how many are like Lucy and her hubby; playing a system that allows those eager for a free ride to get one?

Census Bureau data reveals the following about people classified as “poor”: eighty percent of poor households enjoy air conditioning; nearly three-fourths own a car or truck, and 31 percent own two or more cars or trucks, nearly two-thirds subscribe to cable or satellite television, 50 percent own a personal computer, and one in seven owns two or more computers; 43 percent subscribe to Internet access; one-third own a wide-screen plasma or LCD television; one-fourth own a digital video recorder system, such as a TiVo; more than half of poor families with children own a video game system, such as an Xbox or PlayStation.

Poverty ain’t what it used to be.

It isn’t government’s job to help individuals who are down on their luck, and as the War on Poverty has demonstrated, it does a lousy job of it. And it surely isn’t government’s job to give taxpayer’s money to people who don’t really need it, or to actively recruit people who don’t need welfare onto welfare roles. That is the epitome of government disservice, and elected official’s self-service.

George Bernard Shaw’s famous quote has been used a lot recently, but it has never been truer than today: “A government that robs Peter to pay Paul can always depend on the support of Paul.”

The scare mongering continues on the debt ceiling and default

The scare mongering continues on the debt ceiling and default


There is great wailing and gnashing of teeth over the potential for catastrophe if the debt ceiling is not raised, but whether the ceiling is raised or not, the underlying problem will remain to be reckoned with yet again.

We are warned against defaulting on the national debt, which President Barack Obama tells us will have the most dire consequences. However, default really isn’t an issue, as economist and former long-time Federal Reserve System Chairman Alan Greenspan explained: “The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default.”

While Mr. Greenspan’s statement is technically true, printing even more money to pay the nation’s debts has its own set of economic problems, and heaven knows we have enough of those already.

Another reason paying our debt service isn’t a problem is that even if the debt ceiling isn’t raised so that the government can borrow more money, there is more than enough money coming into the treasury each month to pay the interest on the debt multiple times over, although that has its problems, too.

But the best reason is contained in Section Four of the Fourteenth Amendment to the U.S. Constitution, which directs, in no uncertain terms, that "the validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned." The Constitution commands the president to make good the debts of the United States, and that includes both what our nation owes to bondholders, and the sums promised in legislation to those receiving pensions set by law, according to legal scholar Garrett Epps.

What that means is that if the debt ceiling isn’t raised President Obama will be forced to make some tough decisions on what won’t receive funding so those mandated payments can be made, and since much of Mr. Obama’s popularity comes from spending money, there could be some uncomfortable and long days in the White House.

However, the scare mongering about the catastrophe facing the nation and the resulting public outrage will likely force an increase in the debt ceiling for the 80th time since 1940.

President Obama tells us this won’t increase spending, but since it does increase the limit on spending, does anyone really doubt that spending will soon increase, and before long the politicians will want yet another debt ceiling increase.

Sometimes there are compelling reasons for deficit spending, like WWII, the 9-11 attacks, and the banking crisis that threw the country’s economic system into crisis, but most times it is just a bail out from fiscal irresponsibility. Sometimes the ceiling has been raised by a small amount, other times by a large amount, and sometimes it’s been raised temporarily with provisions for a "snap-back" to a lower level.

“Weighing benefits against costs is the way most people make decisions – and the way most businesses make decisions if they want to stay in business,” says the eminent economist Dr. Thomas Sowell. “Only in government is any benefit, however small, considered to be worth any cost, however large.”

And that is the crux of the problem. People who are elected to represent the interests of the citizenry do not use common sense and basic economics when making decisions we pay them to make.

Trying to obtain benefits without considering either the cost or the likelihood of success not infrequently produces bad programs, and bad programs breed and multiply in Washington, DC, and live forever.

The federal government is simply too big, too powerful, too intrusive, too expensive, and too undisciplined, and as a result there are dozens of duplicate programs, and more than a few programs that do not, and never have, achieved success, but are still being funded. And there are billions going to fraud and abuse.

Attempts to reign in waste, fraud and abuse have mostly lacked serious action, and efforts to cut spending to match income likewise have accomplished little.

And atop that lackluster record we have the biggest deficit producer in history in the White House.

At the end of FY2000, four months before George W. Bush took office, the national debt totaled $5.67 trillion. At the end of the fiscal year that Barack Obama took office it had risen to $11.91 trillion. That number is skewed higher due to the $151 billion TARP program President Bush implemented, $147 billion of which was repaid after Mr. Obama took office.

At the end of FY2013 the debt stood just short of $17 trillion. Excluding FY2009, when both Mr. Bush and Mr. Obama held the White House, the president and the mostly-Democrat-controlled Congress added more than $5 trillion to the national debt, with average deficits of $1.163 trillion from FY2010 – FY2013.

It is way past time that government face up to reality and live within its means. The president and Congress must get rid of unproductive programs; eliminate, or at least significantly reduce, fraud, waste and abuse; shut down or downsize federal departments; and implement business-like fiscal standards. In short: do their job.