Wednesday, May 30, 2012

Welfare : Means Tested Outlays Huge and Rising

How does this effect the rest of the population when the number of those taking from the federal 'pot of plenty' out numbers the those that are putting into the pot?

The real conflict is now more and more people that work hard to make ends meet are more aware of how the system works and are not happy with the results. And here is the real fear of the progressive left socialists Democrats, an educated population. This spells disaster for progressives. It's the beginning of the end of progressive dominance. 

The progressives rely on ignorance of the citizenry, but once the population becomes aware of how they are being used and abused, and see who the socialists really are what they intend, the tide begins to flow the other way.

So beware - once the progressive left socialist 'play book' is used up and their collective backs are against the wall, and if history is a sign post, they will turn to violence. Occupy Wall Street and else where?

Examining the Means-Tested Welfare State
Source: Robert Rector, "Examining the Means-Tested Welfare State: 79 Programs and $927 Billion in Annual Spending," Heritage Foundation, May 3, 2012.

A significant portion of the government safety net consists of antipoverty or means-tested welfare programs. Seventy-nine federal programs provide cash, food, housing, medical care, social services, training and targeted education aid to poor and low-income Americans. These programs are unique in that they are not paid for by their recipients, says Robert Rector, a Heritage Foundation senior research fellow.

Most Americans are aware of the existence of these programs. They are, however, largely unaware of their financial scope and budgetary impact.

•In fiscal year 2011, federal spending on means-tested welfare came to $717 billion.
•With state contributions to federal programs adding another $201 billion and independent    state programs contributing around $9 billion, total welfare spending comes to $927 billion.
•Roughly half of means-tested spending is for medical care, another 40 percent goes to cash, food and housing aid, and the remaining 10 to 12 percent goes to what might be called "enabling" programs, which help low-income individuals become more self-sufficient.

On an individual basis, this funding is enormous in scale, and is technically more than enough to raise every impoverished American out of poverty.

•One way to think about the $927 billion figure is that it amounts to $19,082 for each American defined as "poor" by the Census Bureau.
•However, since some means-tested assistance goes to individuals who are low-income but not poor, a more meaningful figure is that total means-tested aid equals $9,040 for each lower-income American (in the lowest-income third of the population).
•With the income of low-income individuals, means-tested welfare spending is sufficient to bring the income of every lower-income American to 200 percent of the federal poverty level.

Despite their ineffectiveness at reducing poverty, these programs are the fastest growing portion of the federal government's budget.

•Adjusting for inflation and population growth, the country now spends 50 percent more on means-tested cash, food and housing than it did in 1991.
•Furthermore, President Obama's budgetary outlays will allow further unsustainable growth in these programs over the next decade.


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