Feeds:
Posts
Comments

Posts Tagged ‘Dependency’

Okay, I’ll admit right away that the title of this column is an exaggeration.

But if you’re a public policy wonk and you worry about the rising level of government dependency and the erosion of self reliance, then you’ll understand why the chart below, which was presented earlier today at the Copenhagen conference of the Free Market Road Show, is so disturbing.

It was part of a presentation by Anders Krab-Johansen, the CEO and Editor-in-Chief of Børsen, which is the leading business newspaper in Denmark. It shows his nation’s dependency ratio, and it reveals that the number of people getting money from the government has more than doubled while the number of people in the economy’s productive sector is stagnant.

It’s very hard to be optimistic about Denmark given the trend line.

No wonder my Danish friend, Mads Lundby Hansen of the Center for Politiske Studier (CEPOS), put together the “party boat” to show that far too many of his countrymen are living off the labor of an ever-shrinking number of producers in the private sector.

It seems that “Lazy Robert” has lots of company.

You won’t be surprised to learn that a massive level of dependency necessarily means an onerous burden of government spending.

In his presentation, Mr. Krab-Johansen shared this chart looking at consumption spending by governments in the developed world.

For further elaboration, there are different types of government spending,

Spending on core public goods, such as provision of the rule of law, is associated with good economic performance.

Other types of government spending, such as outlays for physical capital and human capital, have a mixed record. Some of the spending on things like roads and education is productive, but some of it is wasteful and counterproductive.

The bulk of government spending, however, is for transfers and consumption, and those outlays are associated with weaker economic performance.

The bottom line is that it’s a very bad sign for Denmark to have the developed world’s second-highest burden of public consumption outlays.

And if there’s an excessive burden of government spending, you won’t be surprised to learn that the tax burden is onerous.

I’ve previously joked that the tax system is so onerous that birthers should accuse Obama of being born in Denmark.

So it’s no surprise that business entrepreneurs identified tax-related issues as being two of their three biggest challenges.

 

It’s also worth noting that bureaucracy and regulation also are listed as problems.

P.S. This set of cartoons is the American version of Denmark’s party boat.

P.P.S. If anyone cares, my speech at the Copenhagen conference focused on the importance of policies that enable labor, capital, and entrepreneurship to generate economic growth.

P.P.P.S. I don’t want to leave readers with a totally grim perspective on Denmark. Yes, the fiscal burden is terrible, but the country actually is very free market in other areas.

Read Full Post »

I wrote back in 2010 that riots in Europe were a harbinger of future unrest in the United States.

Given the chaos in Baltimore, I’m tempted to claim profound wisdom and great foresight.

But I’ll reluctantly confess that my main point five years ago was to warn about the long-run consequences of poorly designed entitlement programs and unfavorable demographics (leading to the outcome illustrated by this set of cartoons).

Simply stated, Margaret Thatcher was right when she warned that the problem with big government is that “eventually you run out of other people’s money.”

The riots in Baltimore, by contrast, are a short-run phenomenon exacerbated by factors such as a loss of social capital and potential police misconduct.

But we can still learn something by looking at the dysfunctional consequences of big government in Baltimore and other big cities in America.

Here’s some of what’s been written by my colleague, Michael Tanner.

…there are lessons to be learned about the failures of government and how those failures can create a climate of anger and frustration that just awaits a spark to ignite the flames of violence and destruction. …the powder keg was put in place by decades of big-government liberalism, both in the city of Baltimore and in the state of Maryland. …Maryland has one of the most generous welfare systems in the nation. A mother with two children participating in seven common welfare programs — Temporary Assistance for Needy Families (TANF), food stamps (SNAP), Medicaid, housing assistance, Supplemental Nutrition for Women, Infants, and Children (WIC), energy assistance (LIHEAP), and free commodities — could receive benefits worth more than $35,000. Yet, nearly a quarter of the people in Baltimore still live in poverty. In 1960, Baltimore’s poverty rate was just 10 percent. …while Baltimore’s high welfare benefits haven’t reduced poverty, they may well have exacerbated other social problems. For example, some studies have long shown that high welfare benefits correlate with high out-of-wedlock birth rates. It should not come as a surprise, then, that two-thirds of births in the city are to unmarried mothers, and almost 60 percent of Baltimore households are headed by single parents.

While the politicians subsidize bad things in Maryland, they penalize good things.

…while Baltimore’s high welfare benefits haven’t reduced poverty, they may well have exacerbated other social problems. For example, some studies have long shown that high welfare benefits correlate with high out-of-wedlock birth rates. It should not come as a surprise, then, that two-thirds of births in the city are to unmarried mothers, and almost 60 percent of Baltimore households are headed by single parents. …if that were not bad enough, the city of Baltimore adds one of the highest property taxes among comparable cities…a tax rate more than twice the rate of most of the rest of the state.

Mike has lots of additional information, including revelations about bad education policies, dangerous anti-gun laws, and counterproductive drug prohibition.

But let’s now shift to a Wall Street Journal editorial on the same subject.

…what went up in flames in Baltimore Monday night was not merely a senior center, small businesses and police cars. Burning down was also the blue-city model of urban governance. …let’s not forget who has run Baltimore and Maryland for nearly all of the last 40 years. The men and women in charge have been Democrats, and their governing ideas are “progressive.” This model, with its reliance on government and public unions, has dominated urban America as once-vibrant cities such as Baltimore became shells of their former selves. …the main failures are three: high crime, low economic growth and failing public schools that serve primarily as jobs programs for teachers and administrators rather than places of learning. …of late the progressives have been making a comeback, led by Bill de Blasio in New York and the challenge to sometime reform Mayor Rahm Emanuel in Chicago. This week’s nightmare in Baltimore shows where this leads. It’s time for a new urban renewal, this time built on the ideas of private economic development, personal responsibility, “broken windows” policing, and education choice.

One would think that Detroit – and now Baltimore – show the dangers for cities of big government and dependency.

Unfortunately, the election of Mayor de Blasio in New York City suggest many voters are incapable of learning any lessons from the real world.

Last but not least, here’s some of Kevin Williamson’s column for National Review.

American cities are by and large Democratic-party monopolies, monopolies generally dominated by the so-called progressive wing of the party. The results have been catastrophic, and not only in poor black cities such as Baltimore and Detroit. …Would any sentient adult American be shocked to learn that Baltimore has a corrupt and feckless police department enabled by a corrupt and feckless city government? …While the progressives have been running the show in Baltimore, police commissioner Ed Norris was sent to prison on corruption charges (2004), two detectives were sentenced to 454 years in prison for dealing drugs (2005), an officer was dismissed after being videotaped verbally abusing a 14-year-old and then failing to file a report on his use of force against the same teenager (2011), an officer was been fired for sexually abusing a minor (2014), and the city paid a quarter-million-dollar settlement to a man police illegally arrested for the non-crime of recording them at work with his mobile phone. There’s a good deal more.

And who should be blamed for this horrible track record?

No Republican, and certainly no conservative, has left so much as a thumbprint on the public institutions of Baltimore in a generation. Baltimore’s police department is, like Detroit’s economy and Atlanta’s schools, the product of the progressive wing of the Democratic party enabled in no small part by black identity politics. This is entirely a left-wing project, and a Democratic-party project. …Community-organizer — a wretched term — Adam Jackson declared that in Baltimore “the Democrats and the Republicans have both failed.” Really? Which Republicans? Ulysses S. Grant? Unless I’m reading the charts wrong, the Baltimore city council is 100 percent Democratic. …The evidence suggests very strongly that the left-wing, Democratic claques that run a great many American cities…are incompetent, they are corrupt, and they are breathtakingly arrogant. Cleveland, Philadelphia, Detroit, Baltimore — this is what Democrats do.

My one contribution to the wise words in the three articles excerpted above is to point out that the troubles in Baltimore are somewhat similar to riots we’ve seen in Greece and the United Kingdom. There’s no racial or ethnic component to the chaos we’ve seen in most of the European riots, so the analogy is far from exact, but the events are alike in that a big part of the problem is a failure of government and a concomitant erosion of social or cultural capital.

Simply stated, too many people on both sides of the Atlantic now think they are entitled to a life based on freebies from government. This almost surely erodes any sense of self worth and breeds anger and resentment.

Putting the toothpaste of self-reliance back into the societal tube doubtlessly will not be easy. Here’s some of what Jay Nordlinger wrote today.

The young rioters have…been brought up to regard themselves as entitled and victimized, at the same time. In truth, they are among the luckiest people in the whole world: to have been born American. Millions, probably billions, would be happy to trade places with them. The rioters are free to make of life what they will. Their shackles are mental and spiritual. …These young people have been grossly mistaught — misled — by the “grievance industry” (to use shorthand). Just about the worst thing you can do to a child is tell him he’s a victim — when it’s not true. Even when it is true, it may be unwise. It is surely damnable when it’s not true.

While I’m sometimes pessimistic about certain societal trends, one part of the answer is easy.

Stop creating new entitlements (such as Obamacare) that alter the already perverse tradeoff between work and leisure. Then people might feel a greater incentive to get jobs.

And stop imposing punitive taxes, particularly on the investors and entrepreneurs that are willing to put capital at risk to create jobs and wealth for the rest of us.

Read Full Post »

A nation’s prosperity is determined by the quantity and quality of labor and capital that are productively utilized.

Which means that it doesn’t make sense to have policies that penalize either saving and investment or working.

Yet that seems to be the favorite hobby of the political class.

And there are real consequences. A new study by a pair of economists, published by the National Bureau of Economic Research, has some interesting findings on the link between redistribution programs and labor supply.

It’s a bit wonky, given the way academics write, but they produce some important data on the negative unintended consequences of government dependency.

…we find that the decline in desire to work since the mid-90s lowered the unemployment rate by about 0.5 ppt and the participation rate by 1.75 ppt. This is a large effect… Our estimates imply that changes in the provision of welfare and social insurance (notably disability insurance) explain about 50 percent of the decline in desire to work, which suggest a possible role for the major welfare reforms of the 90s – the 1993 Earned Income Tax Credit (EITC) expansion and the 1996 reform of the Aid to Families with Dependent Children (AFDC) program…the possibility that changes in the provision of social transfers can affect desire to work and thereby the aggregate unemployment and participation rates echoes Juhn, Murphy and Topel (2002) and Autor and Dugan (2003) who argue that the growing attractiveness of disability benefits relative to work increased the number of individuals outside the labor force. …Most strikingly, receiving…disability insurance substantially reduces the probability to want to work by 17 percentage points (ppt), consistent with the fact that an impairment should preclude any work activity and thus lower desire to work.

The authors openly warn that it’s difficult to separate out the effects of various redistribution programs.

The mid-1990s welfare reform apparently helped labor supply by pushing recipients to get a job.

Disability programs, by contrast, strongly discourage productive behavior, while wage subsidies such as the earned-income credit ostensibly encourage work but also can discourage workforce participation for secondary earners in a household.

Here are more of their findings.

…the Earned-Income Tax Credit (EITC) program, a program aimed at o§setting the social security payroll tax for low-income families with children, was expanded in order to encourage work effort (Rothstein and Nichols, 2014). …After controlling for characteristics, we find that the EITC explains 71 percent of the decline in low-educated married mothers’ desire to work between 1988-1993 and 1994-2010. …While the “welfare to work” reform was designed to do bring welfare recipients into the labor force, the reform could have had the opposite effect on the “weaker” nonparticipants by shifting them from a program with some connection to the labor force (welfare) to a program with no connection to the labor force (disability insurance). …Our cross-sectional estimates imply that changes in the provision of welfare and social insurance explain about 60 percent of the decline in desire to work among prime-age females, while the difference-in-difference estimates attribute between 50 and 70 percent of the decline in mothers’ desire to work to the welfare reforms. We conjecture that two mechanisms could explain these results. First, the EITC expansion raised family income and reduced secondary earners’ (typically women) incentives to work.

For non-academic readers, these two charts from the NBER study will be easier to understand.

The first chart shows what should be good news. Welfare reforms in the 1990s led to a big drop in dependency.

But now it’s time for the bad news.

Welfare reform reduced one type of dependency, but other redistribution programs have ballooned.

So no wonder there’s now research showing unfortunate results.

Writing for Investor’s Business Daily, John Merline addresses the same issue, but looking at different redistribution programs.

…the share of 25- to 54-year-olds who are active in the labor market has steadily fallen, to the point where just over 80% of this age group is either working or looking for work. …University of Chicago economics professor Casey Mulligan…posits that the root cause was an attempt by Congress to help people displaced by the recession. Democrats who controlled Congress at the time made several changes to anti-poverty subsidies, adding things like mortgage assistance programs, the benefits of which are phased out as income rises. ObamaCare provides still another one, by offering insurance subsidies that also phase out. …these programs…add to what is already a steep effective marginal tax rate for those in the phase-out range.

In other words, the redistribution programs alter incentives to work since people implicitly calculate the costs and benefits of productive behavior.

Mulligan figures the top rate for these families eligible for various federal aid programs went from 40% to 48% in the immediate aftermath of the recession. In other words, for every extra dollar someone eligible for various aid programs makes, they lose 48% from taxes and benefit reductions. …Mulligan says. “The more you help low-income people, the more low-income people you’ll have. The more you help unemployed people, the more unemployed people you’ll have.”

John is right to cite Prof. Mulligan’s work.

I cited his work last year showing how Obamacare undermined incentives to work. And other academics have reached the same conclusion.

Regarding the broader issue of redistribution and dependency, I argue that federalism is the best approach, both because states will face competitive pressure to avoid excessively generous benefits and because states will learn from each other about the best ways to help the truly needy while minimizing the negative impact of handouts on incentives for productive behavior.

Or we could just keep the current system, which is bad for both poor people and taxpayers.

P.S. This Wizard-of-Id parody contains a lot of insight about labor supply and incentives. As does this Chuck Asay cartoon and this Robert Gorrell cartoon.

P.P.S. If you want some jokes referencing the disability program, we have the politically correct version of The Little Red Hen, as well as two very similar jokes about Jesus performing miracles and how liberals differ from conservatives and libertarians.

P.P.P.S. Switching to a different topic, the IRS is whining that it needs to a bigger budget to better “service” taxpayers.

The Washington Examiner has a great editorial on the topic. Here are some of the better passages.

Oh, those poor dears at the IRS. They wasted $50 million on 225 conferences between 2010 and 2012, including a single $4.1 million conference in Anaheim, Calif. They wasted $50,000 creating bad videos on the clock, including one of the worst Star Trek parodies in the history of the Internet. They gave raises and bonuses to employees who hadn’t paid their own taxes. They were caught targeting applicants for nonprofit status based on their ideology and potential opposition to President Obama. They lied to Congress about being unable to recover emails from those involved.

Yet the bureaucracy still wants more money.

IRS Commissioner John Koskinen warned that taxpayers would suffer… But according to a new report by the House Ways and Means Committee, these inconveniences were the result of IRS malingering – of budgetary choices made within the agency itself….“Spending decisions entirely under the IRS’s control led to 16 million fewer taxpayers receiving IRS assistance this filing season,” said the report. “Other spending choices, including prioritizing employee bonuses and union activity on the taxpayer’s dime, used up resources that otherwise could have been used to assist another 10 million taxpayers.” This is a classic example of how federal bureaucrats take revenge when their budgets are cut. Instead of prioritizing limited resources in order to fulfill their agencies’ missions, they find ways to transfer the maximum amount of pain directly to taxpayers, so as to teach the country a lesson about how indispensable they are.

In other words, a classic example of the “Washington Monument ploy.”

Though not as outrageous as the crass behavior of the politicized National Park Service.

Read Full Post »

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.

Read Full Post »

Sweden is an odd country, at least from the perspective of public policy.

On the positive side, it has private Social Security accounts. It has an admirable school choice system. And it was a good role model of spending restraint back in the 1990s.

But on the negative side, Sweden has one of the world’s biggest welfare states. Even after the spending restraint of the 1990s, the public sector consumes about 50 percent of economic output. And that necessitates a punitive tax code.

There’s also a truly perverse fixation on equality. And you won’t be surprised to learn that the government-run healthcare system produces some unpleasant outcomes.

Today, let’s build on our understanding of Sweden by looking at how the country’s welfare state interacts with the immigration system.

Writing for CapX, Nima Sanandaji discusses these issues in his adopted country of Sweden.

Sweden has had an unusually open policy towards refugee and family immigrants. The Swedish Migration Agency estimates that around 105,000 individuals will apply for asylum only this year, corresponding to over one percent of Sweden’s entire population.

This openness is admirable, but is it successful? Are immigrants assimilating and contributing to Sweden’s economy?

Unfortunately, the answer in many cases is no.

…the open attitude towards granting immigrants asylum is not matched by good opportunities on the labor market. An in-depth study by the daily paper Dagens Nyheter shows that many migrants struggle to find decent work even ten years after entering the country. …The median income for the refugees in the group was found to be as low as £880 a month. The family immigrants of refugees earned even less. Ten years after arriving in the country, their median income was merely £360 a month. These very low figures suggest that a large segment of the group is still relying on welfare payments. Dagens Nyheter can show that at least four out of ten refugees ten years after arrival are supported by welfare. The paper acknowledges that this is likely an underestimation.

So what’s the problem? Why are immigrants failing to prosper?

Nima suggests that government policies are the problem, creating perverse incentives for long-term dependency.

To be more specific, the country’s extravagant welfare state acts as flypaper, preventing people from climbing in the ladder of opportunity.

The combination of generous benefits, high taxes and rigid labour regulations reduce the incentives and possibilities to find work. Entrapment in welfare dependency is therefore extensive, in particular amongst immigrants. Studies have previously shown that even highly educated groups of foreign descent struggle to become self-dependent in countries such as Norway and Sweden. …The high-spending model is simply not fit to cope with the challenges of integration.

The part about “highly educated groups” is particularly important since it shows that the welfare trap doesn’t just affect low-skilled immigrants (particularly when high tax rates make productive activity relatively unattractive).

So what’s the moral of the story? Well, the one obvious lesson is that a welfare state is harmful to human progress. It hurts taxpayers, of course, but it also has a harmful impact on recipients.

And when the recipients are immigrants, redistribution is especially perverse since it makes it far less likely that newcomers will be net contributors to a nation.

And that then causes native populations to be less sympathetic to immigration, which in unfortunate since new blood – in the absence of bad government policy – can help boost national prosperity.

Though let’s at least give Sweden credit. I’m not aware that its welfare programs are subsidizing terrorism, which can’t be said for the United Kingdom, Australia, France, or the United States.

P.S. Here’s my favorite factoid about Sweden.

Read Full Post »

Bad ideas definitely have the ability to cross borders.

The income tax first appeared in England, on a temporary basis during the Napoleanic wars and then permanently in 1842. It then spread like a cancer to other parts of the world, eventually reaching – and plaguing – the United States starting in 1913.

Government-run Social Security schemes were started by the Germans in 1889 under Chancellor Otto von Bismarck. Similar programs then were adopted elsewhere, including the United States as part of FDR’s misguided New Deal in 1935.

Now we have another example.

I wrote last month about how the State Department’s refugee program is a trainwreck because it is bringing Somalis (many of whom have an anti-Western ideology) to America and trapping them in government dependency with a plethora of handouts (and also creating a breeding ground for terrorists).

Well, our cousins in the United Kingdom also have a refugee program that is similarly counterproductive.

I don’t know which country was dumb enough to first create its program, but the Brits win the prize for subsidizing the most infamous terrorist (and new member of the Moocher Hall of Fame).

Here are some excerpts from a story in the U.K.-based Daily Mail.

Jihadi John and his asylum-seeking family have milked the British benefits system for 20 years, the Mail can reveal today. Housing the Islamic State executioner and his relatives in affluent parts of London has cost taxpayers up to £400,000. One landlord said Mohammed Emwazi’s family were ‘parasites’ and ‘tenants from hell’. Incredibly, they are still believed to be pocketing £40,000 a year in handouts despite there being no sign of them in Britain. …Westminster City Council is still paying the rent on the family’s £600,000 flat even though the rules say housing benefit should normally be stopped after 13 weeks.

So did all these handouts to the Emwazi family turn them into good citizens?

Hardly. One of the kids, Mohammed Emwazi has gone to the Middle East to fight for ISIS and is now infamous at “Jihadi John,” the psychopath that beheads innocent people.

MPs said they were horrified that the child of a family given refugee status, citizenship and benefits had returned the favour by orchestrating the murder of two of its citizens. …In sickening propaganda videos, his son led the beheadings of Britons Alan Henning and David Haines.

But even if Jihadi John hadn’t turned into a nutjob, British taxpayers still got a very bad deal from the Emwazi clan.

The family apparently is still on the dole, continuing an unbroken 20-year tradition of mooching off British taxpayers.

During their time in Britain, neither Jasem nor Ghaneya officially worked. …With a 12-year-old daughter, Hana, they are still believed to be claiming an estimated £7,821 a year in child benefits and child tax credits. That is on top of annual claims of about £23,400 in housing benefit, £678 in council tax support and £5,929 in jobseeker’s allowance.

Looking at this result, logical people might be tempted conclude that it’s time to rethink refugee programs.

Or, at the very least, change the rules that funnel these people into government dependency.

But since many politicians aren’t logical, there are probably British versions of Barack Obama who are urging job training programs or similar nonsense (for a humorous take on that topic, see the cartoons at the bottom of this post).

P.S. Jihadi John featured in one of the most effectively snarky anti-Obama cartoons I’ve ever seen, which is at the end of this post.

P.P.S. Switching to a different topic, I’ve written (some would say ad nauseam) about disproportionately generous pay and benefits for government bureaucrats. Particularly for the gilded class in Washington.

I think the evidence for excessive bureaucratic compensation is ironclad, particularly if you look at “quit rates” by sector.

But now we have yet another piece of evidence that the federal workforce is living on Easy Street. Check out this new polling data from Gallup.

Remember, this is polling data with federal workers describing their own status, not what taxpayers think.

So let’s give 44 percent of bureaucrats credit for honesty, which is ironic because bureaucrats in polls have acknowledged they’re more likely to be dishonest! And lazy as well.

Though the real moral of the story is not compensation. As I explain at the end of this video, the real problem is that many government jobs shouldn’t exist in the first place.

P.P.P.S. If you want to enjoy bureaucrat humor, click here, here, here, here, here, here, here, here, here, and here.

Read Full Post »

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.

Read Full Post »

Older Posts »

Follow

Get every new post delivered to your Inbox.

Join 2,759 other followers

%d bloggers like this: