October 28, 2013

Income Redistribution: General Welfare

Since Obama took office, taxpayers have spent $3.7 trillion on welfare.

Like night following day, it’s a truism that politicians don’t keep their campaign promises. Unfortunately, that is not the case with Obama’s 2008 campaign vow to “fundamentally change” America, a nebulous statement that left his many followers with a tingle up their legs and the rest of us with an icy shiver up our spines. Five years later, he is fundamentally changing the country – into a European-style welfare state. Not surprising, considering he spent his first term telling the world that he disagrees with the concept of American exceptionalism.

Republican members of the Senate Budget Committee report that since Obama took office, taxpayers have spent $3.7 trillion on welfare – more than transportation, education and NASA combined. Moreover, that amount does not include Social Security or Medicare, both of which recipients paid into. Rather, it only covers the “means-tested” programs, which are free, income-based benefits. There are 80 such programs, many of them overlapping and therefore hard to oversee. For example, a household on food stamps may also receive benefits from one of the 14 other food assistance programs. In fact, the IRS has revealed that in the past 10 years, the government gave away $133 billion in bogus payments, at least that’s as much as they admit.

Welfare reform advocates have applauded the UK’s overhaul. Facing their own problems with “the dole,” the Brits consolidated their programs into one, then capped the amount. This reform resulted in more benefits for recipients while saving taxpayers money (a concept similar to a flat tax). But the chances of similar changes happening under the Obama regime are slim to none. Based on the projections of the Congressional Budget Office, welfare spending will increase by 80% over the next 10 years. Perhaps by then we’ll have leadership that turns our fiscal policy around before we turn into Europe West.

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