Sunday, December 08, 2013

Curing the Healthcare Crisis
One of the biggest differences in how the left and the right view the world concerns the welfare state. Currently, the federal government spends about $1 trillion a year on 126 means tested welfare programs. That amounts to almost $22,000 for every poor person in America, or $88,000 for a family of four.

What difference does all this spending make?

Among people on the right, there is little doubt. These programs are destroying the culture of the recipient communities. They are replacing a culture of self-reliance and self-help with a culture of dependency. Amazingly, a record 91.5 million people of working age—almost one third of the entire population—are not working and not even looking for a job.

Among conservatives I have met who were once poor (and I have met a surprising number of them), the view that welfare subsidizes and encourages dependency is almost a self-evident truth. I’m not sure I have ever met a liberal who was once poor. But then again, the liberals I encounter are all in the academic and public policy world―far away from the poverty population they so often talk about. I think this is a fascinating sociological phenomenon. If my experience is different from yours, weigh in in the comments section....

The End of Poverty in America
...In any case, though, this seems to be a solution in search of a problem, because there is no poverty in America, and I can prove it. According to a Cato Institute study published last year, the combined expenditures for federal and state governments directed to means-tested public assistance — “welfare” — is approximately $1 trillion (yes, with a “T”) a year.

There are approximately 48 million people in the U.S. with incomes at the poverty level or below.

The application of advanced mathematics — long division, and I did it in my head thank you very much — tells us that’s about $21,000 per person per year. Obviously, that’s $84,000 for a family of four.

That’s got a problem, though. According to the 2013 Federal Poverty Guidelines, the poverty level for a family of four is $23,950. The total of $84,000 is roughly 380 percent of the federal poverty guidelines.

Obviously, there’s no poverty left in America.

Unless, of course, that money isn’t actually being spent on the poor people at all. I wonder where it goes?