$100K is a good bit of taxpayer scratch.
This isn’t surprising, but it is still galling.
The town of Woonsocket rises and falls every month with issuance of food stamps on the 1st. Not a good way to live, that is for sure.
President Obama doesn’t seem to have a problem with the fact that 49% of American households get some sort of means tested wealth transfer. And this isn’t even counting tax credits.
Critics of crony capitalism are found on both the left and right. This creates a very interesting alliance. For example, left and right work together to audit the Fed. We can also audit each other’s ideas for factual accuracy.
We have written before about the big business of Food Stamps in this country. To Pizza Hut lobbying for Food Stamp use in their restaurants, to JP Morgan servicing the program for hundreds of millions of dollars, it’s not hard to see why SNAP, EBT, WIC, Food Stamps, whatever are becoming more entrenched in our economy and society. There’s a lot of money to be made in these programs.
The Poor Aren’t Making Money Off Poverty Programs So Who Is?
President Obama has been proposing to take away the charitable deduction for major donors since coming into office. Since most charitable giving comes from major donors, this would have profound and devastating consequences for the charitable sector of our economy. At the present time it is around 10% of Gross Domestic Product. Without the charitable deduction it could shrink significantly.
If we were truly interested only in providing a “safety net” for citizens (and even non-citizens, and leaving aside the question of whether the state is the best provider of a safety net) the size of government would be tiny relative to the languid behemoth we have today.
In 1996 Bill Clinton signed the Personal Responsibility and Work Opportunity Act. It has long been hailed as an example where Republicans and Democrats came together and actually got something very worthwhile done.
The Act deeply reformed welfare in America, and limited its benefits. It moved the administration to the states to a large degree and funding went to the states via “block grants.”
The most important provision of welfare reform is that it limits eligibility to 60 months of the lifetime of the recipient. After 5 years, welfare benefits stop.
This, for some however, is not generous enough. Witness what Vice President Biden’s former Chief Economic Advisor, Jared Bernstein, writes in his recent piece Your Safety Net on Block Grants.