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Showing posts with label Social Security. Show all posts
Showing posts with label Social Security. Show all posts

Wednesday, August 19, 2015

Get’cha Honey for Nothin’, Get’cha Chips for Free
(I want my, I want my, I want my E-B-T!)

The quickest and surest way to make things more expensive for most of us is for someone in our government to attempt to make such things “free” for some.

As I noted earlier this year, the largest “charity” in the U.S. is government (which, of course, brags about it!). Americans gave a total of approximately $3.4 billion (about $2.4 billion from individuals) to private charities in 2013. In the same year, Americans received over $600 billion from means-tested (recipients required to be below a certain income level) government programs (housing, food stamps, WIC, Medicaid, and the like). When non means-tested programs (Social Security, Medicare, unemployment, and so on) are included, the total is a shocking and staggering $2 trillion dollars.

In case you missed it, for over four consecutive years now, the number of Americans receiving food stamps (transactions are now down with an EBT card) surpassed 45 million. About 20 percent of U.S. children receive food stamps. Thus nearly one-fifth of our future electorate is being conditioned to the idea that it is government’s responsibility to make sure they are fed.

Of course, with the current size and role the government plays in our everyday lives, people have come to expect much more than food from their Uncle Sam. And liberals are intent on growing these expectations.

Given the life-changing financial decision Michelle and I made 17 years ago, anytime I see a headline containing the phrase “debt free,” my attention is drawn. This is especially the case whenever the headline is a reference to a plan or scheme devised by a liberal. Most liberals’ ideas of “debt free” involves either printing massive amounts of money or heavily taxing those who tend not to vote for democrats (or at least have no lobbyist to create tax loopholes).

As her campaign falters, Hillary Clinton recently announced her plan to do more of what liberals do best: give away other people’s money. In an effort to politically capitalize on the massive $1.2 trillion in student loan debt that is held by tens-of-millions of Americans, Clinton proposed “to make public colleges debt-free for students, to cut interest rates for people struggling with debt from loans taken out to pay for college, and to expand some existing aid programs to cover more people.”

Her campaign says that the new program would cost $350 billion over ten years, which means that it will probably cost at least twice that much. Liberals are almost as bad at predicting the future costs of federal programs as they are at climate change predictions. (The interesting thing to ponder is which bad prediction will end up costing us more.) Of course, as is almost always the case with these things, Clinton’s plan will not make college less expensive, but more so.

Clinton isn’t alone in her plan to further expand the role of the federal government in education. According to Alex Simindinger, writing in Real Clear Politics, “Affordable, debt-free college is now an economic policy plank for all the Democratic presidential candidates, who believe it resonates across political parties, across economic strata, and with young people as well as with their parents and grandparents.”

In other words, liberals have examined the political landscape and found the next new way—much to Benjamin Franklin’s dismay—to give the electorate the opportunity to vote themselves money. And “affordable?!” Social Security, the oldest, and arguably the most popular federal social welfare program, is, according to Andrew Briggs of the American Enterprise Institute, “the Titanic headed for the iceberg.” And there is virtually no political will in Washington, D.C. to do anything about it.

In 2014 Medicare—which is as popular as Social Security—cost the U.S. government $600 billion, which was just short of defense spending. This spending was nearly double Medicare’s receipts ($342 billion) for 2014. Put another way, Medicare brings in about 11% of federal tax revenue, while amounting to nearly 17% of federal spending. As John Graham of the National Center for Policy Analysis implies, “Medicare devours the federal government.”

In other words, with over $18 trillion in total federal debt, and an annual federal budget deficit of nearly $500 billion, virtually no Big Government social program is “affordable.” Of course, this includes Obamacare.

In spite of the oft-parroted notion that Obamacare is “working,” the law is much more expensive than promised ($2 trillion instead of $900 billion—Democrats will just make this up out of petty cash), fewer people are covered than promised, premiums are rising faster than promised (“23 percent in Illinois, 25 percent in North Carolina, 31 percent in Oklahoma, 36 percent in Tennessee and 54 percent in Minnesota), fewer doctors are available than promised (“42 percent fewer oncology and cardiology specialists; 32 percent fewer mental health and primary care providers; and 24 percent fewer hospitals”), and so on.

As is often the case with these programs, Obamacare was sold on a mountain of lies. Because of the desire of many Americans to receive “free” stuff from the government, and because of the refusal of far too many Americans to recognize that such things are never free, we are now saddled with another massive government program that we may never be rid of.

The idea that Americans are getting things “free” from the government may be the lie of the century. A billboard near my home illustrates well this lie:




According to its website, “Peach State provides all of the medical services covered by Medicaid and PeachCare for Kids.” In other words, Peach State is government healthcare in Georgia. PeachCare is Georgia’s version of CHIP (Children’s Health Insurance Program). As a result of the failed efforts of “Hillarycare,” but in order to get at least some expansion of the role of government in healthcare, SCHIP (as it was formerly known) was created in 1997 as a shared federal-state health insurance program for children and pregnant mothers in families whose incomes were too high for Medicaid.

Take note of the advertisement of “Free Dental & Vision Coverage” on the billboard. Such deception is replete when it comes to these Big Government programs. To quote Mattie Ross from True Grit, “You must pay for everything in this world in one way or another. There is nothing free except the grace of God.” If only more Americans were as eager for God’s grace as they were for Obama’s stash.

(See this column at American Thinker.)

Copyright 2015, Trevor Grant Thomas
At the Intersection of Politics, Science, Faith, and Reason.
www.trevorgrantthomas.com
Trevor and his wife Michelle are the authors of: Debt Free Living in a Debt Filled World
tthomas@trevorgrantthomas.com

Friday, July 15, 2011

“Every Form of Refuge Has Its Price”

Make no mistake about it, the heart of the current (and future) financial crisis lay with entitlements, or what some deem “federal benefits.” Though many point to the collapse of mortgage-backed securities and the real estate market as triggering the Great Recession, ultimately we are where we are as a result of far too much debt in the U.S. economy. In other words, as the current debate over the debt ceiling illustrates, ours is a crisis of debt.

Very early in our marriage, my wife and I learned a valuable and simple lesson when it comes to managing money: how to live on budget. As I have written before, upon making an early commitment never again to be in debt, we have lived the last 12 years of our 13-and-a-half year marriage completely debt free. This includes owning our home, cars, (along with having four children), and so on. (See a video of our financial testimony here.) Our budget discipline played a huge role in achieving this tremendous financial freedom.

Of course, any American with an intellectual capacity greater than that of fans of Jersey Shore understands the lack of budget discipline that has plagued Washington D.C. for decades. One statistic stands out above all others as an illustration of the fiscal folly perpetuated by the federal government: According to the U.S. census, in 2009, nearly 139 million Americans—over 46%--received at least one federal benefit.

Included in these numbers: 46.5 million received Social Security; 42.6 million Medicare; 42.4 million Medicaid; 36.1 million food stamps; 22.2 million WIC; 12.4 million housing subsidies; 6.1 million unemployment. The United States has created an unprecedented culture of dependency.

Sadly, far too many Americans are content with our current welfare state. A recent Wall St Journal-NBC News poll reveals that fewer than 25 percent of Americans favor cutbacks to Social Security or Medicare to reduce the federal deficit. As the Journal noted, “Even tea party supporters, by a nearly 2-to-1 margin, declared significant cuts to Social Security ‘unacceptable.’”

For another illustration of how numerous Americans are willing to take us even further down our debt hole, last year, when President Obama spoke to an audience of college students on the subject of health care, he declared that the students will now be able to remain on their parents’ health insurance plan until age 26. Upon hearing this, columnist Dennis Prager noted, “I do not ever recall hearing a louder, more thunderous and sustained applause than I did then. I do not believe that if the president had announced that a cure for cancer had been discovered that the applause would have been louder or longer.”

The Heritage Foundation’s 2010 Index of Dependence on Government, which “is designed to measure the pace at which federal government services and programs have grown in areas in which private or community-based services and programs exist or existed to address the same or similar needs,” had a 2009 measure of 272. In 1990 it was 123. In 1962 it was 19. Thus, in about 50 years, according to this Index, dependence on the federal government has grown by over 1300%.

Republicans and Democrats alike—in other words most Americans—are to blame for the monstrosity that is the U.S. federal government. We like to point fingers, but the sad truth of the matter is that, by and large, our government is simply a reflection of its citizenry. Far too many Americans have decided to look to government to provide for them, with far too few understanding the real price of such a relationship.

“Every form of refuge has its price,” sang the Eagles’ Glen Frey in 1975. The line is from the Eagles’ hit song “Lyin’ Eyes.” Don Henley and Frey wrote the song about a beautiful woman who (seemingly) marries a “rich old man” so “she won’t have to worry.” However, though she has many of the finer things in life, she finds herself rather unfulfilled.

It is time for America to realize the price of having our government provide us with so much. It is a price that we literally cannot afford. To roll things back will not be painless; however, as President Grover Cleveland (a democrat) noted, “It is the responsibility of citizens to support their government. It is not the responsibility of government to support its citizens.”

Copyright 2011, Trevor Grant Thomas
At the Intersection of Politics, Science, Faith, and Reason.
Trevor and his wife Michelle are the authors of: Debt Free Living in a Debt Filled World
tthomas@trevorgrantthomas.com