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Archive for the ‘Redistribution’ Category

As shown by this graphic, why are so many people in Maine taking advantage of the food stamp program? As shown by this map, why does Oregon have such a high level of food stamp dependency?

These are just rhetorical questions since I don’t have the answers. But if we can come up with good answers, that could lead to better public policy.

After all, if we want a self-reliant citizenry, it would be better if people were more like those in Nevada and less like the folks in Vermont, at least based on the infamous Moocher Index.

But one thing we can say with certainty is that the food stamp program has morphed into a very expensive form of dependency.

Jason Riley of the Wall Street Journal opines on the importance of reforming this costly entitlement.

Officially known as the Supplemental Nutrition Assistance Program, or SNAP, the food-stamp program has become the country’s fastest-growing means-tested social-welfare program. …Between 2000 and 2013, SNAP caseloads grew to 47.6 million from 17.2 million, and spending grew to $80 billion from $20.6 billion… SNAP participation fell slightly last year, to 46.5 million individuals, as the economy improved, but that still leaves a population the size of Spain’s living in the U.S. on food stamps. …The unprecedented jump in food-stamp use over the past six years has mostly been driven by manufactured demand. The Obama administration has attempted to turn SNAP into a middle-class entitlement by easing eligibility rules and recruiting new food-stamp recipients. …Democrats tend to consider greater government dependence an achievement and use handouts to increase voter support. The president considers European-style welfare states a model for America.

Making America more like Greece, however, is not good news for taxpayers.

But the program also has negative effects on recipients. Contrary to the left’s narrative, we don’t have millions of starving people in America.

…it now operates more like an open-ended income-supplement program that discourages work. Some 56% of SNAP users are in the program for longer than five years, which suggests that the assistance is being used by most recipients as a permanent source of income, not as a temporary safety net. …“Today, instead of hunger, the central nutritional problem facing the poor, indeed all Americans, is not too little food but rather too much—or at least too many calories,” Douglas Besharov, who teaches courses on poverty alleviation at the University of Maryland, told the House Agriculture Committee last month. “Despite this massive increase in overweight and obesity among the poor, federal feeding programs still operate under their nearly half-century-old objective of increasing food consumption.

So why don’t we try to help both taxpayers and low-income Americans by reforming the program, specifically by “block-granting” it to the states?

Uncle Sam picks up almost all of the bill. That means states have little incentive to control costs. Republicans argue that shifting to block grants would not only save money but also encourage states to increase the labor-participation rate of low-income populations. A state that has only so much money to work with is more likely to promote self-sufficiency in the form of employment, job-search and job-training requirements for able-bodied adults on the dole.

Decentralization, Riley explains, worked very well in the 1990s with welfare reform.

…1996 reforms…imposed more stringent time limits and work requirements on welfare recipients enrolled in programs like Temporary Assistance for Needy Families, or TANF. Welfare rolls subsequently plunged. By 2004, caseloads had fallen by 60% overall and by at least 30% in nearly every state. Child poverty, black child poverty and child hunger also decreased, while employment among single mothers rose. This was a welcome outcome for taxpayers, poor people and everyone else—except those politicians with a vested interest in putting government dependence ahead of self-sufficiency to get elected and re-elected.

So kudos to Republicans on Capitol Hill for proposing to put the states in charge of food stamps.

Just like they also deserve applause for working to block-grant the Medicaid program.

This is something that should happen to all mean-tested programs. Once they’re all back at the state level, we’ll get innovation, experimentation, and diversity, all of which will help teach policy makers which approaches are genuinely in the best interests of both taxpayers and poor people (at least the ones seeking to escape dependency).

Though I can’t resist adding one caveat. The ultimate goal should be to phase out the block grants so that states are responsible for both raising and spending the money.

Let’s close with a few real-world horror stories of what we’re getting in exchange for the tens of billions of dollars that are being spent each year for food stamps.

With stories like this, I’m surprised my head didn’t explode during this debate I did on Larry Kudlow’s show.

P.S. Shifting to another example of government waste, let’s look at the latest example of overspending and mismanagement by the Department of Veterans Affairs.

Nothing, of course, can compare with the horrible outrage of bureaucrats awarding themselves bonuses after putting veterans on secret waiting lists and denying them care.

But having taxpayers pay nearly $300,000 just so a bureaucrat can move from one highly paid job in DC to another highly paid job in Philadelphia should get every American upset. Here are some of the sordid details from a local news report.

Rep. Jeff Miller (R., Fla.), who chairs the House Veterans Affairs Committee, has also raised questions about the salary and “relocation payments” to the new director of the Philadelphia office, Diana Rubens. Rubens, who was a senior executive in the D.C. office when she was tapped in June to take over the troubled Philadelphia branch, received more than $288,000 in relocation expenses. “The government shouldn’t be in the business of doling out hundreds of thousands in cash to extremely well-compensated executives just to move less than three hours down the road,” Miller said. …Under federal regulations, an agency can pay a variety of costs associated with reassigning an employee, including moving, closing costs, and a per-diem allowance for meals and temporary lodging for the employee’s household.

I’m baffled at how somebody could run up such a big bill. Did she use the space shuttle as a moving van?

Did she have to stay six months at a 5-star resort while waiting for her new house to be ready?

Does a per-diem allowance allow three meals a day at the most expensive restaurant in town?

This is either a case of fraud, which is outrageous, or it’s legal, which means it’s an outrageous example of government run amok.

Regardless, it underscores what I wrote back in 2011.

I will never relent in my opposition to tax increases so long as the crowd in Washington is spending money on things that are not appropriate functions of the federal government. …I will also be dogmatic in my fight against higher taxes so long as there is massive waste, fraud, and abuse in federal programs.

Not to mention that we should never allow tax hikes when it’s so simple to balance the budget with modest spending restraint.

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In 1729, Jonathan Swift authored a satirical essay with the unwieldy title of A Modest Proposal for Preventing the Children of Poor People From Being a Burthen to Their Parents or Country, and for Making Them Beneficial to the Publick. He suggested that the destitute Irish could improve their lot in life by selling their children as food for the rich.

I’m personally glad this was merely a tongue-in-cheek proposal since some of my ancestors immigrated to America from Ireland in the 1800s.

But maybe it’s time for a new “modest proposal” to make our leftist friends happy.

They’re constantly griping about the rich, asserting that the “top 1 percent” or “top 10 percent” are making too much money. Indeed, folks on the left want us to believe that “income inequality” is a big issue and a threat to the country.

So why not update Jonathan Swift’s idea and simply consume all the rich people? Indeed, P.J. O’Rourke actually wrote a book entitled Eat the Rich.

But we don’t really need to feed them to anyone. Just dump their bodies in a mass grave or bury them at sea.

In one fell swoop, income inequality could be dramatically reduced. Sure, those of us left would wind up being equally poor, like in Cuba or North Korea, but you can’t make an omelet without breaking a few eggs!

But some of you probably think arbitrary executions of rich people is a step too far. After all, it would be unseemly to mimic France’s Reign of Terror or Stalin’s extermination of the Kulaks.

That’s why we should instead look at a watered-down “modest proposal” put forward by David Azerrad of the Heritage Foundation. Here’s some of what he wrote for Real Clear Politics.

…consider the following bold proposal to solve our inequality problem once and for all: exile the top 0.1% of income earners. Round up all 136,080 taxpayers who make more than $2.16 million a year and ship ’em off to whatever country will accept them. Presto. Problem solved. …The 0.1 percenters, whose growing incomes have been fueling the rise in inequality over the past several decades, will have vanished overnight.

Though Azerrad does point out that exile has many of the same economic downsides as execution.

..it will put a serious dent in the government’s finances. Almost one in every five tax dollars that the government collects comes from the 0.1 percent. To make up for the shortfall, we should probably also confiscate all their assets before exiling them. What about the jobs the 0.1 percenters create and the value they add to the economy? …we’d be losing all but twelve of the CEOs from the 300 largest companies in the country. The show business industry would collapse overnight with all the star talent in exile. Gone too would be the best investment bankers, financial consultants, surgeons and lawyers. One third of the NFL’s roster and well over half of the NBA’s roster would also be culled.

Heck, we’re already confiscating some of the assets of rich people who emigrate, so part of Azerrad’s satire is disturbingly close to reality.

But let’s stick with the more farcical parts of his column. To deal with potential loss of tax revenue, Azerrad proposes to have the government sell America’s rich people to other countries.

…we will need to generate more revenue. That could be done rather easily by auctioning off the top-earning Americans to the highest foreign bidder.

That makes sense. There are still a few places in the world – such as Switzerland, Cayman, Hong Kong, Bermuda, etc – where the political class actually understands it is good to have wealth creators.

By the way, Azerrad points out that there will be a tiny little downside to this proposal. Contrary to the fevered assertions of Elizabeth Warren and Paul Krugman, penalizing the rich won’t do anything to help the less fortunate.

Mind you, life prospects will not have improved for a single poor child born into a broken community with failing schools. Or for a single recent college grad crushed by debt and facing dim job prospects. Or for a single family struggling to make ends meet. …It won’t be any easier to start a business or to find a job. Four in 10 children will still be born out of wedlock. Our entitlements will still face unfunded liabilities of almost $50 trillion. …We will however be able to boldly proclaim that we have addressed “the defining challenge of our time.” Our country will in no way be better off. But we will have satiated our lust for equality.

Actually, our country will be far worse off. Jobs, investment, and growth will all collapse.

So while the poor may wind up with a larger share of the pie, the overall size of the pie will be much smaller.

And this is perhaps the moment to stop with the satire and take a more serious look at the issue of income inequality.

I’ve repeatedly argued that the focus should be growth, not redistribution. To cite just one example, it’s better to be a poor person in Singapore than in Jamaica.

But let’s look at what others are saying. Professor Don Boudreaux of George Mason University addresses the issue (or non issue, as he argues) in a column for the Pittsburgh Tribune-Review.

I’ve never worried about income inequality. …Income inequality — like the color of my neighbor’s car or the question of the number of pigeons in Central Park — just never dawns on me as an issue worthy of a moment’s attention.

Don then speculates about why some people are fixated on inequality.

I wonder: What makes someone worry about income inequality? One personal characteristic that plausibly sparks obsession with inequality is envy. …Another characteristic…that likely gives rise to concerns over income inequality is a mistaken conviction that the amount of wealth in the world is fixed. …A third personal characteristic that prompts anxiety over income inequality is fear that the “have-nots” will rape and pillage society until and unless they get more from the “haves.” …This third characteristic is widespread today. The risk that the “have-nots” in modern First World economies will organize themselves using social media and then grab their electric carving knives to storm the wine bars and day spas of the “haves”.

I think all three hypotheses are correct, though people in the public policy world rarely admit that they’re motivated by envy.

But, for what it’s worth, I think many leftists genuinely think the economy is a fixed pie. And if you have that inaccurate mindset, then extra income or wealth for a rich person – by definition – means less income and wealth for the rest of us. This is why they support class-warfare tax policy.

The challenge, for those of us who believe in economic liberty, is to educate these people about how even small differences in growth can yield remarkable benefits to everyone in society within relatively short periods.

A lot of establishment Republicans, meanwhile, seem to implicitly believe that redistribution is desirable as a tactic to “buy off” the masses. They’ll privately admit the policies are destructive (both to the economy and to poor people), but they think there’s no choice.

When dealing with these people, our challenge is to educate them that big government undermines social capital and makes it far more likely to produce the kind of chaos and social disarray we’ve seen in Europe’s deteriorating welfare states.

P.S. For a humorous explanation of why the redistribution/class-warfare agenda is so destructive, here’s the politically correct version of the fable of the Little Red Hen.

And the socialism-in-the-classroom example, which may or may not be an urban legend, makes a similar point. As does the famous parable about taxes and beer.

P.P.S. I still think Margaret Thatcher has the best explanation of why the left is wrong on inequality. And if you want to see a truly disturbing video of a politician with a different perspective, click here.

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While immigration is a very contentious issue for the politicians in Washington, there’s actually some level of agreement among people in the real world.

Almost everybody agrees that it would be foolish and short-sighted not to allow some immigration, particularly from young, educated people with valuable skills.

Similarly, there is widespread agreement that you can’t have completely open borders, particularly for those who are unlikely to be net contributors to the economy.

So the real debate (and this is where there is a lot of room for disagreement) is who gets to come to America and under what conditions.

I don’t raise this issue because I have any wise words – much less proposed solutions – on the overall issue of immigration.

Instead, let’s look at the profoundly perverse way that the federal government is using the refugee program to expand the problem of dependency.

Here are some excerpts from a disturbing story in the Washington Times.

The State Department has helped to relocate tens of thousands of refugees from the war-torn African nation of Somalia to Minnesota, where they can take advantage of some of America’s most generous welfare and charity programs. …Most of Minnesota’s Somali population started off as legal refugees through a program administered by the U.S. State Department through the Bureau of Population, Refugees, and Migration. Minnesota was selected among the nation’s states for relocation primarily because of its robust entitlement offerings.

Gee, isn’t that wonderful. We’re bringing people into the country and settling them where they can get the largest amount of handouts.

And apparently that’s Minnesota, the France of America.

“Minnesota is exceptional in many ways but it’s the closest thing in the United States to a true social democratic state,” said Ahmed Samatar, a professor of international studies at Macalester College, in St. Paul. “That translates into the way Somali refugees have been received here they’ve been given a secure environment, housing, education, health care, perhaps even some minimum income to sustain them until they can stand on their own feet. That’s all provided by Minnesota,” said Mr. Samatar, who has tracked the State Department’s refugee program. Outside Alaska, Minnesota spends more per low-income person on public welfare than any other state in the U.S., according to a report by the Center for the American Experiment, a think tank located in Minneapolis. The report found Minnesota outspent its average peer state in welfare subsidies by nearly $4,000.

Oh, just in case you’re thinking that maybe the situation isn’t so bad because at least private charities are involved, it turns out that those organizations are simply contractors for the government.

…the…charitable organizations operating within the state with which the State Department contracts …In addition to its generous welfare subsidies, Minnesota also has a number of charitable organizations that contract with the State Department like Lutheran Social Services, Catholic Charities, and World Relief Minnesota.

In other words, taxpayers are getting hit twice, once for official welfare payments and once for coerced “charity” laundered through groups jostling for space at the public trough.

At this point, you may be wondering whether all this spending is having a desirable effect?

As taxpayers, are we getting value for our money?

Yes, but only if you define dependency and unemployment as valuable.

Even though Minnesota has a good job market, that doesn’t seem to have translated into jobs for the Somali refugees. Minnesota’s state demographer’s office reports that only 41 percent of Somali men are working and 54 percent of Somali women are employed, meaning many may rely on the state’s handouts to survive, and are more susceptible to extremists pull. “It seems safe to assume that if they’re not working, then they’re likely receiving public welfare benefits,” said Peter Nelson, director of public policy at the Center of the American Experiment.

Amazingly, the left-wing governor of the state has doubled down on failure, expanding handouts.

Gov. Mark Dayton has expanded the state’s entitlement programs, although he remains mum on the state’s expense at doing so.

Though, to be fair, maybe he doesn’t care because Uncle Sam is the sugar daddy, picking up a big part of the tab.

“The state of Minnesota receives funding through the federal Department of Health and Human Services, Office of Refugee Resettlement to promote the successful resettlement and integration of refugees in Minnesota,” said a spokeswoman at the state’s Department of Human Services. …Minnesotans have also welcomed them onto their entitlement rolls, with the state’s cash assistance and food stamp programs, skyrocketing in recent years. The number of Somali adults and children who participated in the Minnesota’s family cash assistance program jumped 34 percent from 2008 to 2013, according to the state’s statistics. Likewise, Minnesota’s food assistance participation increased 98 percent, to 17,300 adults and children, which does not include U.S.-born Somalis, in the same timeframe.

At this point, you’re probably very upset. At least if you’re a taxpayer.

After all, haven’t we learned from painful experience that redistribution subsidizes poverty?

But I’ve saved the “best” for last.

…the effort is having the unintended consequence of creating an enclave of immigrants with high unemployment that is both stressing the state’s safety net and creating a rich pool of potential recruiting targets for Islamist terror groups. This population is…being targeted by Islamist terror organizations like the Islamic State and al-Shabab, a Somalia-based group with links to al Qaeda, according to U.S. officials. Among Minnesota-based Somali-Americans, American converts to Islam or Somali refugees, there have been numerous convictions for various levels of collaboration with Islamist terror groups, plus reports of fighting with al-Shabab or other Islamist groups.

Yup, tax dollars for terrorists.

It seems that these bums want a little excitement in their lives.

So they’re joining al-Shabab.

Since 2008, as many as 40 men from Minneapolis have joined Islamist groups after being pulled in by jihadists through social media, federal officials say. Last year, an American youth named Douglas McAuthur McCain died in Syria fighting for the Islamic State. Mr. McCain was recruited in Minnesota, where he lived. In 2009, another Minnesota youth, Troy Kastigar posted a recruiting video for al-Shabab before he was killed fighting for the terrorist group in Somalia. Kastigar and McCain are thought to have been friends. That same year a Somali man who left Minneapolis joined al-Shabab and blew himself up in a suicide bombing at an Ethiopian consulate in Somalia, killing 24 people.

Just like the Tsarnaev brothers. Just like the deadbeat scrounger from Australia, the nutjob moocher from the United Kingdom, and the wacko sponge in France.

So now let’s circle back to our main question. Why is the federal government bringing people into the country, luring them into dependency, and subsidizing terrorism?

Leftists sometimes like to tell us that “Government is simply the name for the things we do together.”

Well, “we” do some really stupid stuff when we act “together” through government.

Instead of a misguided refugee program that steers dodgy people into dependency, why not – with a condition of no handouts or dependency – open the door to Chinese engineers? Romanian software experts? Or Indian scientists? How about Nigerian businessmen? Maybe French doctors?

But I guess people who would assimilate and contribute to our economy aren’t as attractive as welfare recipients who despise our culture.

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Since I’m in the United Kingdom, it’s appropriate to announce that another Briton has been elected to the Moocher Hall of Fame.

Ms. Kay Bird deserves this “honor” because it takes a very reprehensible entitlement mentality to brag about taking a global holiday with welfare cash.

And we’re talking about a global holiday that appears to be far more extravagant than the foreign trips enjoyed by Natalija, another member of the Moocher Hall of Fame.

Here are some of the jaw-dropping details from a report in the U.K.-based Daily Mail.

A single mother on benefits has admitted spending £3,000 of taxpayers’ cash on a dream round-the-world trip to far flung destinations with her 10-month-old baby daughter. ...she still receives more than £8,500 a year in child benefit, income support and tax credits as it is considered that she has a low income. …she visited places such as Australia, Bali and Dubai. Miss Bird says she could work but chooses not to… She said: ‘No, I don’t need the money as such and I didn’t need to go travelling either but I wanted to so I did. ‘If someone’s offering you free money and telling you to take it, you’d have to be a fool not to – that’s all I did. …‘I don’t feel guilty and I don’t regret it. It started off just as a ­holiday to Athens, then things started to fall into place.

Let’s think through her statement about “free money.” Is she really so clueless that she doesn’t realize that her handouts are only possible because other people are actually working and producing?

She says “I don’t feel guilty,” which is remarkable because I doubt taxpayers who financed her jaunt have ever been to Dubai and Bali.

‘Each time some more money landed in my account, I booked something. ‘I started booking flights and accommodation in Europe in October and was booking something with every payment until a few days before I went.’ …She also visited Athens, Istanbul, Dubai, Colombo in Sri Lanka, Kuala Lumpur, Jakarta, Bali and Darwin before returning home via Amsterdam. In total, she spent four months worth of her benefits cash on the trip, paying for 13 flights, travel visas, accommodation and spending money. Her benefits continued to be paid into her bank account while she was away and she returned to the UK just before the five-week travel limit imposed on people claiming Jobseekers’ Allowance.

I have to confess that I’m mystified how someone who chooses not to work can get a handout called “jobseekers’ allowance.” I wonder if MHoF members Danny and Gina are benefiting from the same scam?

In any event, the bureaucrats seem more concerned with enabling welfare fraud than in protecting the interests of taxpayers.

She added: ‘I went to the job centre and told them I wanted to go travelling and they told me there was a five-week limit. I came home just within those five weeks so my benefits didn’t get cut off.’ …she was claiming £90 a week income support, £90 a month child benefit and £230 a month in tax credits. She said: ‘I told them I wanted to register back in the country and they told me I was already eligible for Jobseekers’ Allowance. ‘Then a couple of weeks later they said I could switch to income support which meant I didn’t even have to apply for jobs. ‘Then I was told I could get tax credits, too. I was really shocked at how generous it was but I wasn’t going to turn it down.’

I’m sure British taxpayers will be delighted to learn that Ms. Bird is already planning her next welfare-financed overseas holiday.

Now she says she is planning her next luxury trip for herself and daughter which will be to New Zealand. …She explained: ‘I’m not your regular single mum on benefits who spends it all in McDonald’s and never leaves the town they were born in. ‘I’m changing the image of what it is to be a benefits mum and proving that if you do it the right way, you can have ­anything you want. …’Of course people are negative and many people get very jealous. ‘But I had only been out of Europe once before I went on benefits and now I’ve had the chance to see some incredible things from tropical beaches to the ­skyscrapers of Dubai. ‘I never would have been able to afford it without benefits.’

Gee, doesn’t that warm your heart. She’s a trailblazer, showing other deadbeats how you can live like a jet-setter with other people paying the bills!

Yes, Ms. Bird definitely deserves to be in the Moocher Hal of Fame.

P.S. Since we’re talking about reprehensible welfare moochers, let’s shift from the U.K. to Australia.

It appears that there are lots of Aussie Muslims who want to join the “Terror Wing” of the Moocher Hall of Fame.

Here are some excerpts in a story from the Aussie-based Daily Telegraph.

A federal investigation into the welfare status of Australian foreign fighters, prompted last year by revelations in The Telegraph, shows 96 per cent had been on welfare benefits when they fled to the Middle East. Most had continued to collect payments from Australian taxpayers while training with Islamic State to become terrorists intent on wanting to kill Australians. The investigation has captured the records of 57 Australians who left the country before October last year to fight with the Islamic State. Of that number 55 have been confirmed to have been on welfare payments.

Wow, 96 percent of the identified terrorists who came from Australia were subsidized by taxpayers.

And there are more welfare-fueled terrorists on the way, perhaps recruited by Abdul, who’s been sponging off Australian taxpayers for about two decades.

Since then, an estimated 50 more Australians have ­illegally travelled to the Middle East to join IS, with most believed to have been claiming some form of benefit. A subsequent audit of this group confirmed that most had been at one time in ­receipt of benefits such as Newstart, sickness, youth and carer’s allowances, as well as the Disability Support Pension.

So let’s summarize. Able-bodied young men who are healthy enough to join a fight in the Middle East somehow were somehow so helpless that they needed welfare handouts to survive in Australia.

In reality, of course, these low-life deadbeats surely were capable of working, but they doubtlessly thought it was wonderful that the people they hate were subsidizing their sloth.

All the more reason why policymakers in all nations should reduce the size of the welfare state.

But it’s equally important to decentralize so that local and regional governments are responsible for redistribution programs. Under such an approach, I suspect we’d be far more likely to see the imposition of standards to preclude mooching by able-bodied adults, whether they’re run-of-the-mill moochers or terrorists-in-training.

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There’s a famous quote, commonly  attributed to Alexis de Tocqueville, about the American character.

America is great because America is good. If America ever stops being good, it will stop being great.

What makes this quote so popular (even though Wikipedia says it’s not actually from de Tocqueville) is the instinctive understanding that a society’s success is at least in part driven by the moral character of its people.

And even if the quote is incorrectly attributed, it clearly is something that could have come from de Tocqueville. In his writings, he openly acknowledged that good laws were only part of what’s needed for a successful society.

The best laws cannot make a constitution work in spite of morals; morals can turn the worst laws to advantage.

This is spot on. A nation is far more likely to be successful if people have the right attitudes, what’s variously referred to as social capital, national character, cultural capital, civics, or tradition.

Here’s what I wrote about the topic last year.

…social capital…refers to the attitudes of a country’s people….Do the people of a nation believe in the work ethic? Or would they be comfortable as wards of the state, living off others? Are they motivated by the spirit of self-reliance? Would they be ashamed to go on welfare? Do they think the government is obligated to give them things? The answers to these questions matter a lot because a nation can’t prosper once you reach a tipping point of too many people riding in the wagon and too few people producing.

I fear that many nations, such as France and Greece, have already reached the point of no return. And I’m worried America is on the same path.

That’s the main reason I created the Moocher Hall of Fame. Yes, taxpayers should get outraged how their money is being wasted, but the far bigger problem is the mentality, present is an ever-growing number of people, that there’s nothing wrong with living off the government.

Sort of as depicted by this Lisa Benson cartoon.

Though it would be more accurate to say that too many people are opting to live off the work of others. After all, the government doesn’t have money to redistribute unless it is taxed or borrowed from those who earned it.

But enough of my amateur commentary, which only scratches the surface of this issue. For those who want deep expertise and knowledge on the topic, I’m delighted (in a very pessimistic and dour sense of the word) to share some excerpts from a superb article in National Affairs by Nicholas Eberstadt, who is a scholar at the American Enterprise Institute.

He starts by explaining that an ever-growing share of the population is receiving handouts and that this pattern is a threat to American exceptionalism.

Asking for, and accepting, purportedly need-based government welfare benefits has become a fact of life for a significant and still growing minority of our population: Every decade, a higher proportion of Americans appear to be habituated to the practice. If the trajectory continues, the coming generation could see the emergence in the United States of means-tested beneficiaries becoming the majority of the population. …nearly half of all children under 18 years of age received means-tested benefits (or lived in homes that did). For this rising cohort of young Americans, reliance on public, need-based entitlement programs is already the norm — here and now. It risks belaboring the obvious to observe that today’s real existing American entitlement state, and the habits — including habits of mind — that it engenders, do not coexist easily with the values and principles, or with the traditions, culture, and styles of life, subsumed under the shorthand of “American exceptionalism.” Especially subversive of that ethos, we might argue, are essentially unconditional and indefinite guarantees of means-tested public largesse.

For those who prefer hard numbers, here is a chart from his article.

There’s so much interested data and analysis in the article, that it’s difficult to choose only a few things to highlight. But these passages are particularly depressing.

The corrosive nature of mass dependence on entitlements is evident from the nature of the pathologies so closely associated with its spread. Two of the most pernicious of them are so tightly intertwined as to be inseparable: the breakdown of the pre-existing American family structure and the dramatic decrease in participation in work among working-age men. When the “War on Poverty” was launched in 1964, 7% of children were born outside of marriage; by 2012, that number had grown to an astounding 41%, and nearly a quarter of all American children under the age of 18 were living with a single mother. …As for men of parenting age, a steadily rising share has been opting out of the labor force altogether. Between 1964 and early 2014, the fraction of civilian men between the ages of 25 and 34 who were neither working nor looking for work roughly quadrupled, from less than 3% to more than 11%. In 1965, fewer than 5% of American men between 45 and 54 years of age were totally out of the work force; by early 2014, the fraction was almost 15%. …mass gaming of the welfare system appears to be a fact of modern American life. The country’s ballooning “disability” claims attest to this. Disability awards are a key source of financial support for non-working men now, and disability judgments also serve as a gateway to qualifying for a whole assortment of subsidiary welfare benefits. Successful claims by working-age adults against the Social Security Disability Insurance (SSDI) program rose almost six-fold between 1970 and 2012 — and that number does not include claims against other major government disability programs, such as SSI.

Ugh. It’s almost as if this Chip Bok cartoon is becoming a depiction of American reality.

To close, here are some excerpts that put the issue of dependency in broader context.

The burning personal ambition and hunger for success that both domestic and foreign observers have long taken to be distinctively American traits are being undermined and supplanted by the character challenges posed by the entitlement state. The incentive structure of our means-based welfare state invites citizens to accept benefits by showing need, making the criterion for receiving grants demonstrated personal or familial financial failure, which used to be a source of shame. …The entitlement state appears to be degrading standards of citizenship in other ways as well. For example, …The late senator Daniel Patrick Moynihan once wrote, “It cannot too often be stated that the issue of welfare is not what it costs those who provide it, but what it costs those who receive it.” The full tally of those costs must now include the loss of public honesty occasioned by chronic deception to extract unwarranted entitlement benefits from our government…collusive bipartisan support for an ever-larger welfare state is the central fact of politics in our nation’s capital today, as it has been for decades. Until and unless America undergoes some sort of awakening that turns the public against its blandishments, or some sort of forcing financial crisis that suddenly restricts the resources available to it, continued growth of the entitlement state looks very likely in the years immediately ahead.

So what’s the answer to this mess?

Without question, the first step is to get Washington out of the business of imposing a one-size-fits-all system on the country.

Simply stated, take the money in Washington that is spent on all redistribution programs, lump those funds into a block grant, and then turn the money over to the states and give them free rein to decide how best to alleviate poverty without creating discomfort.

Republicans, to their credit, already have proposed that solution for Medicaid. But they need to expand that legislation to other means-tested programs.

The real key to success, though, is slowly but surely phasing out the block grant. It’s good to give states flexibility in spending money, but you won’t get responsible decisions unless states – at some point – are also responsible for raising the money.

In other words, the answer is federalism. And because this means jurisdictional competition, we’re quite likely to get better policy. After all, if crazy states such as California, New York, and Illinois want to impose high tax rates to fund overly generous handout, they’ll quickly learn why that’s a bad idea since productive people will emigrate and welfare recipients will immigrate.

Ideally, state lawmakers will decide that welfare programs should focus on people with genuine material deprivation and not ….

Writing about Eberstadt’s article, George Will highlights the fact that you no longer have to be poor to get freebies from federal anti-poverty programs.

Between 1983 and 2012, the population increased by almost 83 million — and people accepting means-tested benefits increased by 67 million. So, for every 100-person increase in the population there was an 80-person increase in the recipients of means-tested payments. Food stamp recipients increased from 19 million to 51 million — more than the combined populations of 24 states. What has changed? Not the portion of the estimated population below the poverty line (15.2 percent in 1983; 15 percent in 2012). Rather, poverty programs have become untethered from the official designation of poverty: In 2012, more than half the recipients were not classified as poor but accepted being treated as needy.

And as you read that passage, keep in mind that the poverty line in America is well above the average level of income in most parts of the world.

But the left wants to redefine poverty in ways that enable redistribution to people who aren’t poor.

P.S. Here’s a great video on differences between the United State and Europe. And here’s a video that is best described as the result of an affair between Dr. Seuss and a think tanker.

P.P.S. Here’s a superb Chuck Asay cartoon on how government undermines social capital. And here’s a Michael Ramirez cartoon making the same point.

P.P.P.S. If you enjoy satire, here’s a book of left-wing nursery rhymes.

P.P.P.P.S. And if you want to know one of my fantasies (which deals with the entitlement mindset), click here.

P.P.P.P.P.S. Last but not least, here’s the famous set of cartoons showing the rise and (inevitable) fall of the welfare state.

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If the Moocher Hall of Fame ever moves from the virtual world to brick-and-mortar reality, it’s going to need a lot of space.

That’s because, to use a politically correct term, many of the featured freeloaders are plus-sized.

Stanley looks like a rather robust eater, which is somewhat disturbing on more than one level since he gets disability checks that allow him to fulfill his fantasy of wearing diapers and being an “adult baby.”

Lazy Robert doesn’t look like he misses many meals, and he obviously has plenty of time to enjoy fine dining in Copenhagen since he proudly brags that he’s been living off Danish taxpayers for about 15 years.

Christina’s handouts are so generous that she’s had enough money to eat her way into a size-26 dress, yet she has the gall to complain that taxpayers won’t subsidize a gym membership.

 Now we have another plus-sized honoree. Or, in this case, honorees.

That’s because the U.K.-based Telegraph is reporting on a mother-daughter team that is living large at taxpayer expense.

A mother and daughter who get £34,000 a year in handouts because they are too fat to work say they’d rather be happy and on benefits than depressed and thin. Janice and Amber Manzur weigh a total of 43 stone and are so overweight they have to use mobility scooters to get around.But both women refuse to diet… Ms Manzur lives in a three-bedroom house that has been customised by the council to accommodate her disability and drives a Fiat Quibo disability car worth around £15,000. …The two women, from Kirkcaldy, Fife, jointly receive close to £33,600 benefits a year. That’s the equivalent of a £46,000 salary before tax. …She gets £400 Employment and Support Allowance a month and £430 to cover the rent on her flat. Miss Manzur also gets disability allowance because she is obese and has recurring problems with her leg.

The entitlement mentality is what makes this pair special.

She said: “People shouldn’t judge me or my mum for how big we are because it’s in our genes. “I’ve never been on a diet or to a gym and I don’t even eat that much junk food. It’s my natural build to be this big and I’m happy to not work anymore. We can’t help it, so why bother fighting it?” …Ms Manzur started claiming benefits in 2006 when she left her job as a manager in a call centre because of weight-related health problems. She was forced to argue her case for disability pay after a tribunal claimed if she wanted to work she could lose weight. Ms Manzur won and now gets £620 Employment and Support Allowance and £320 Disability Living Allowance a month. …Miss Manzur’s council-paid flat has been modified to cater for her disability. It has no stairs, a low front door so she can drive her disability scooter inside and a bath with a seat for easy access. The two women are able to spend much of their free time together. Janice said: “We live less than a mile apart. I have the car, so I drive round to her or pick her up. We spend a lot of time together and often go out on our matching mobility scooters. “I watch telly a lot and I also like reading and I recently brought a Kindle with my benefits.”

I’m sure British taxpayers are happy that they’re subsidizing matching scooters, kindles, special cars, redesigned flats, and other goodies that enable the Manzurs to live an unhealthy lifestyle.

By the way, my concern isn’t that the Manzurs eat a lot. As far as I’m concerned, people should eat as much or as little as they like and be whatever size floats their boat. Moreover, I’m in no position to throw stones since I should drop at least 15 pounds.

But I do get very agitated when bad government policies subsidize bad behavior. And the bad behavior I’m referring to is indolence, not over-eating.

Though it’s easy to see why the Manzurs got sucked into a welfare lifestyle. They’re getting the equivalent of more than $50,000 per year to “watch telly” and eat.

But if they chose productive behavior, they would get hit with punitive taxes and have less disposable income (we have the same self-destructive policy in America, and it’s getting worse thanks to Obamacare).

In other words, the Manzurs are responding to bad incentives. You get to live a better lifestyle if you goof off all day.

P.S. The Brits actually have a reality-TV program called Benefits Street, which shows how redistribution ruins lives and creates inter-generational dependency.

P.P.S. British taxpayers at least can be thankful that the U.S. government wasn’t in charge of procuring the kindle for Ms. Manzur.

P.P.P.S. And British taxpayers can also be thankful that the government has recently implemented some welfare reforms that are encouraging work over dependency.

P.P.P.P.S. Though to end on a grim note, the government-run healthcare system in the United Kingdom remains unchanged and is the source of numerous horror stories.

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The modern welfare state is a disaster. But rather than go into lengthy details, let’s simply look at some very powerful images (click for enlarged view).

Probably the most damning evidence is that the poverty rate in America was steadily falling after World War II. But then Lyndon Johnson declared a “war on poverty” and got Washington more involved in the business of income redistribution. So what happened? The poverty rate stopped falling.

But it’s also sobering to see how much money is being spent on income-redistribution programs. Taxpayers at the federal, state, and local level are coughing up more than $1 trillion every year to subsidize poverty. To give an idea of how much inefficiency and waste permeates the system, this is enough to give every poor household $60,000.

Poor people are among the biggest victims of the welfare state. Redistribution programs create a dependency trap because of very high implicit tax rates on productive behavior. Simply stated, handouts are so generous that poor people who enter the labor force generally will have lower living standards than those who remain wards of the state.

 So what’s the solution to this mess?

Fortunately, we have a case study that points us in a productive direction.

The Bill Clinton-era welfare reforms, pushed through by Republicans in Congress, were a big success. Here are some excerpts from an article written by an expert at the Brooking Institution.

Between 1994 and 2004, the caseload declined about 60 percent, a decline that is without precedent. The percentage of U.S. children on welfare is now lower than it has been since at least 1970. …More than 40 studies conducted by states since 1996 show that about 60 percent of the adults leaving welfare are employed at any given moment and that, over a period of several months, about 80 percent hold at least one job. …Again, these sweeping changes are unprecedented. …Equally important, with earnings leading the way, the total income of these low-income families increased by more than 25 percent over the period (in constant dollars). Not surprisingly, between 1994 and 2000, child poverty fell every year and reached levels not seen since 1978. In addition, by 2000, the poverty rate of black children was the lowest it had ever been.

This is an older article from 2006, so there was obviously some movement in the wrong direction after the recent recession.

Nonetheless, the big message from welfare reform in the 1990s is that blank-check welfare entitlements are greatly inferior to a federalism-based approach that allows states to innovate and experiment to see what works best.

That’s the good news.

The bad news is that the Clinton welfare reforms only addressed a minor part of the welfare state. Moreover, the Obama Administration has undermined some of the modest progress that was achieved in the 1990s.

So we need a new offensive to deal with the broader deficiencies of the current system, which is a disaster for both taxpayers and poor people.

But if we use Clinton’s welfare reforms as a model, there is considerable progress that can be achieved. Diana Furchtgott-Roth of Economics 21 has a new study on precisely this topic.

She identifies some of the major redistribution programs in Washington.

This paper examines the evolution of major U.S. welfare programs since 1998—shortly after the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA), the 1996 federal welfare reform signed into law by President Clinton, went into effect. The paper chronicles the average amount of aid provided, as well as length of time on public assistance, focusing on the following programs: SNAP; Temporary Aid to Needy Families, or TANF (established by PRWORA); Medicaid; and Section 8 Housing Choice Vouchers (HCV).

And she points out these programs are an expensive failure, but proposes a way to address the problem.

…while the U.S. economy has since improved, participation in such programs has generally not declined. This paper concludes that there is ample scope for states to reform welfare, and it proposes two substantial changes: (1) cap welfare spending at the rate of inflation and the number of Americans in poverty; and (2) allow states to direct savings from welfare programs to other budget functions. …this paper finds that federal savings through 2013 would, after accounting for inflation and the number of Americans in poverty, total $1.3 trillion had welfare funding remained at 1998 levels.

The key is federalism.

States should have the freedom to experiment to see what policies are most effective. Under such conditions, successful states would serve as models for other states—and, possibly, models for further federal welfare reform. Indeed, successful welfare reforms have already been observed in North Carolina, New York, Indiana, and Rhode Island. …Providing states increased flexibility to adjust resource levels between welfare programs offers numerous advantages. For instance, states with low food prices but high housing costs might shift resources from SNAP to housing programs. In addition, states could divert funding from existing programs to new ones, such as community-based programs that prove successful.

Her bottom line is that the status quo is a failure.

Antipoverty programs should be judged by how successfully they help lift people out of poverty. By this measure, the country’s welfare programs performed poorly during the Great Recession and its aftermath: welfare costs and eligibility have, as this paper has documented, largely expanded, with few gains in poverty reduction. …The status quo is plainly unacceptable. New solutions, not more funding, are the answer. …empower states to choose welfare policies that best serve their most vulnerable families, as well as those that best fit their political demands.

An excellent study and a very sound proposal.

Though I would make one very important modification.

It’s clearly a step in the right direction if the federal government turns all income-redistribution programs into a block grant so that states can decide how to allocate the money and address poverty.

But the long-run goal should be to eliminate any role for Washington, even as a provider of block grants.

In an ideal world, the block grant should be immediately capped and then gradually phased out. Let state and local governments decide how to tax and spend in this arena.

P.S. Some folks on the right want to replace the current welfare state with a government-guaranteed minimum income. But that approach is very inferior to genuine federalism.

P.P.S. The bureaucrats at the OECD (subsidized by our tax dollars) are pushing a new definition of poverty that is really a stalking horse for more income redistribution.

P.P.P.S. In the spirit of political correctness, here’s the modern version of the Little Red Hen and the modern version of the fable about the ant and the grasshopper.

P.P.P.P.S. For American readers, click here to see the extent to which your state makes welfare more attractive than work.

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