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Too Easy in Poverty

Listening to the radio not long ago, the host was talking about how the food stamp program, technically known as The Supplemental Nutrition Assistance Program (SNAP), has increased dramatically since Obama took office in 2009. Much of this increase happened, according to a Heritage Foundation report, after Obama ended (unconstitutionally) the work requirement of the program. The report states that able-bodied adult participation doubled from 1.9 million to 3.9 million from 2008 to 2010.

As I listened about how the food stamp program and other welfare benefits have increased under Obama I started thinking about what this means for the future and what the end state really is for Obama’s administration. I remembered when Obama and Boehner were negotiating the budget and debt ceiling increase earlier in the year. Boehner said that, “the president said to me, ‘We don’t have a spending problem.’” Further, Obama is dead-set on increasing taxes on the wealthy infinitum. In addition to all of this, others make compelling arguments about Obama’s past relationships with Communists, and their influence on his worldview. Putting this all together, what follows is my extrapolation of future events.

The government is expanding fast, even after the small cuts to the increases under Sequestration. The government then has to have more money coming in and borrowing will not work forever; hence, tax increases. Therefore, we give more to the poor through welfare and more is taken from the rich. This is the standard model for a socialist redistribution scheme. However, as we know from economic theories, when we take more from the rich (legal theft), the rich will revolt. They value their time away from work more than their time at work since earning more money requires them to give more to confiscatory taxes and fees.

That means that over time there will be less money in the treasury. That comes in two ways: 1) lessened income to the wealthy and therefore less income tax revenue to the government, and 2) a loss of wealth in general to everyone. This means that the government then has to search for more income. What will they do next? Redefine what it means to be wealthy in order to capture more paying people. Because they cannot go up to find revenue anymore, they will go out. So now more and more people will be paying what it used to take a small group to cover. This process will continue until at some point we will all be paying a large share of the burden to cover all the welfare programs for the so-called poor.

Imagine a world where the highest paid individuals make $1,000 a year, and are taxed at 40%. This means that they take home $600 a year and give $400 every April 15 to Uncle Sam. Understand that this tribute to the government reduces discretionary income and decreases their ability to spend on lavishness like houses, fancy cars, extravagant vacations, luxury hotel rooms, fine dining, etc. Therefore, the trickle-down effect means fewer people are working in those industries, making less money (if any at all), increasing the cost of government largess in the form of more needed welfare, etc. The effect is that the government returns to the wealthy trough in order to steal more money to pay more beneficiaries. This means that the wealthiest are making $1,000 but are taxed at 50% to cover the government’s shortfall; their money is split evenly between themselves and the government.

This creates another feedback loop where the process broadens and more recipients need more benefits from government. In addition, we have now hit a point where the wealthy are no longer the majority recipients of the fruits of their labor, so they start cutting back. This has the effect of reducing their income from $1,000 a year to $900 a year. Because they have reduced their income to qualify for a lower tax bracket, so they can keep $540, and subside the government $360. The wealthy are working less, paying less to the government, and making more than when they were working more and paying 50%. So the government broadens the base again, and taxes the “new” wealthy more.

You can see where this all goes, and how eventually it will get to an equilibrium point whereby everyone is equally miserable, making a relatively equal income, and receiving an equal amount of benefit from an out of control government leviathan. The scenario above is not just created to fit my point of view, it is what has been witnessed by economists the world over as they study human behavioral reaction to fiscal and monetary policies of government – this one is of course simplified and abbreviated.

My arguments above are representative of what constitutes the delusions of the defective socialist mind. From John Maynard Keynes to Paul Krugman, and from Teddy and Franklin Roosevelt to Barack Obama, their delusional interpretations of basic economic theory, and lack of understanding of human economic behavior, will eventually end our way of life. We cannot sustain (I hate that term) a system by which we continually take from the makers and freely give to others. A system that gives handouts is doomed to fail, but a system that encourages the less fortunate to achieve is bound to succeed.

Benjamin Franklin put it best when he said, “I am for doing good to the poor, but… I think the best way of doing good to the poor, is not making them easy in poverty, but leading or driving them out of it. I observed… that the more public provisions were made for the poor, the less they provided for themselves, and of course became poorer. And, on the contrary, the less was done for them, the more they did for themselves, and became richer.” Franklin’s statement embodies the true nature of the American Dream. It is a dream that has been lost in recent times and is nearing a point where we may never see it again.

19 comments

  1. I’m afraid it’s far worse than that. First thing, the reason there are more people on food stamps (and if you’ve ever bothered to check into it, the amount you get won’t feed you for more than 2 weeks at best, and crap food at that), is there aren’t enough jobs to sustain anyone. Right now you have both ends playing the middle. Big companies are not hiring in the U.S., and outsourcing where Americans compete with 3rd world countries is not a feasible solution. Meanwhile you have food and energy on the increase…prices rising significantly. People are eating less, and less health when they do, living with their thermostats set higher or lower to conserve and unable to drive their cars because gas is astronomical. I’ve personally put out over 2000 resumes in my career field, where I have 14 years of solid experience, and I can’t even get an interview. My past history is stellar. Before Obama took office and this downturn plummeted, I worked well over 40 hours a week for year after year. I was productive, and pulling my own weight. But now, at best I find the occasional contract job, no benefits, no overtime and treated like not much more than a prostitute. I know I’m not alone in this. Both Republicans and Democrats are to blame for this mess. The clear solutions would be to start moving away from globalization and focus on localization. We need to contain our economy and make moves to encourage jobs to come back home. We should get out of the WTO and end all trade agreements. We should give tax incentives to get companies out of asia and back here on our own soil. And we should get the money flowing again, then deflate the government so the tax burdens are released.

    • Bill, join us in demanding the “Fairtax” and eliminating the income tax. The income tax is the mother ship that makes all this social reingineering possible, and has been the pry bar to seperate you from your money and your job. The income tax has pushed these companies to relocate operations off shore. Stop penalizing production, and those companies and millions of jobs will come flooding back. I ask you to research thoroughly for yourself the merits of the Fairtax, which taxes consumption, not production. Once you understand it, you’ll demand like millions of others. It is in the House ways and means committee right now…what we need are some brave congressmen and women to get behind this. THEY won’t until they see enough of folks like you and me rallying behind it. It is the only hope of turning this socialist scheme around and turning our ship of state right side up again.

      • The fair tax sounds all fine and dandy on the surface, but to tax consumption instead really puts the low income people at a disadvantage, since almost all of their income gets spent.

  2. Quote:The clear solutions would be to start moving away from globalization and focus on localization. We need to contain our economy and make moves to encourage jobs to come back home. We should get out of the WTO and end all trade agreements. We should give tax incentives to get companies out of asia and back here on our own soil. And we should get the money flowing again, then deflate the government so the tax burdens are released. End of quote.

    I agree with localization of economies and globalization will take care of itself as I will show later. To ask the government to so something is socialism and what our forefathers rejected. Why do conservatives think the government needs to do something? As you propose here. Lack of understanding how the government created the situation to begin with?

    When I was a wee pup. There was talk of exports versus imports and how it had to balance. Gold standard kept jobs in balance in relation to a countries consumption. Then came the removal of the gold standard to pay for a war. That ended all talk of a balance of trade and jobs went overseas to the cheaper labor. It also created the world reserve currency problems that are haunting Americans today. Of course to bring it back would require Americans to live with in their means. Simple put…credit would be hard to come buy. Punt intended. Forcing not only government, but Americans to live without credit and buy with savings. OUCH…a way of living that has not happened since the sixties and many wars later.

    • Cheers Bill,
      I believe you are right on! The problem is as long as this big government attitude continues, all we will see is higher taxes. People, as a whole, are lazy. They indeed need proper motivation like Franklin said. If they are aided in their slothfulness, they will only indulge in it. They real kicker is the working American will have to shoulder the burden of not only this sloth, but also the “big government”. I am a construction worker and own my own business. I have never, in 25 years, had so bad. I can hardly find enough work to keep the doors open. I’ve even considered finding a job to help to make ends meet. I found out quickly that the job search was equally abysmal. If I wanted to work for peanuts, maybe. With our deficit what it is, the unemployment rate what it is and the ever increasing taxes, I do not see a very bright future for America. This country is not going to heal itself. Unless good men stand up in protest, we as Americans will witness the collapse of what was once the greatest country on earth.

      • Brian, the people will never “stand up”, as you say. That is because the political machine will not allow it. All “protesting” will be in line with the parties and prevailing partisan ideologies; nothing more. All others are minor and will be put down, in some manner. When is everyone going to wake up and see that the politicians act in their own self interests first. They keep the people divided and fighting. That is how they keep doing business as usual. The American people can’t even stand up to the fact, that the legislators made bribery, legal for themselves. As long as we have sheep who huddle into the two main camps, and believe everything they’re told, without question, then improvement and adaptation will not happen. that is how the political machine controls the people. You have to go no further than forums like these, and election results, year after year, to see what I am saying. The powers that be, are just that; the powers that be. Does anyone seriously think that those “powers” want to lose what they have? those who believe one party or one ideology at the helms, will change that, are seriously deluded. Just look at the last few decades. The overall big picture will just worsen. If we can somehow get rid of the money in lobbying, then this country might stand a chance.

        By the time our Tricentennial rolls around, we probably won’t even be a major player on the world stage. You can thank big business and the sellout politicians they are in bed with, for most of our problems.

  3. BILL, You got that one right.
    As a 10 year’s on the Disability list, I can tell you & everyone out their, Unless you are of the south of the Border type, Or Wear a MUSLIM Dress, Your Texas Food Stamps are a Joke!
    My Wife had to Quit her job just to take care of me. & Thank God, We Paid off the House long before I became injured, Or like many, We’d be living under a bridge!
    Don’t let all of that Socialist Hype, Steer you into thinking that every last person on Food stamps are sitting on easy street, We’re NOT!!!!
    Just like GUN Killings, A Single Death by a Nut pulling a trigger, Gets Inflated in Propaganda driven Reports, So too Those of us on Food Stamps.
    As of Now, We live on my S.S.I-D, Checks of less than $1100.00 Per Month & Less than $80.00 per month on food stamps. Tell me Just how Many Folks would Love to Claim those Riches? & Thanks to OBAMA & His Medical Genocide Squads, My Reconstructive Surgery, Has been Put on Hold Indifferently,By the way, in case you are thinking wrong, I am a person of color, & many of my fellows have, in the past, been lured into the so-called Welfare Status, But thankfully, That is becoming a thing of the past! fore now It’s the Mexicans & Muslims whom are Taking over With Obama’s Blessings.
    DOWN with All Tyrants!!
    ————————————
    Ya know, the time was that all of these Muslim CULTS where Quiet as ghost. They kept to themselves & we were at peace.
    However NOW, They are like ” Braying Jackasses ” (like their Socialist counterparts) And hide behind their Right to KILL anyone that disagrees with their CULT, As Part of their Religious Freedoms.

    • Completely agree and sympathize with your situation Quester. The whole plan is to turn our once Cheetah like running economy into a lumbering, stumbling giant…soon to fall from his own weight. If you are or once were a productive legal citizen, you are now on Obama’s enemy list.

  4. Agree, Bill. I have two kids who have had to get on food stamps. They both work, both college-educated, but they can’t find a job to pay a living wage to support their families. I might be there soon because my husband was just laid off, he has decades of solid experience, as well, but the jobs he’s been offered don’t pay a living wage. I’m self-employed, my income is never reliable. It’s a problem of both right and left-while capitalism is great and I’m very much a conservative, this crony-capitalism and huge upper level management pay and outsourcing American jobs has got to stop.

    • Nonsense, of course. What someone else is paid has NOTHING to do with whether or not you have a job yourself or whether your husband has one. In most large corporations, if you distributed the CEO’s salary among the other employees, each MIGHT get an additional $15 or so per year…big deal. That’s what? Three Starbucks coffees?

      • Nonsense statement. Distributing it to current employees is yet another misleading, deceptive statement. Hypothetically, if a large portion of all the CEOs salaries were to produce employment for more people, rather than giving it to current employees, then that would benefit everyone. More people with a salary; hence less people unemployed. Less government assistance. handouts, etc. Think of how many lower to mid level salaries could be paid with possibly hundreds of millions, if not even billions of dollars.

        Your statement, is simply making numbers say what you want them to say, or more likely what you have been told, and blindly believe and are now trying to convince others. People who pay attention and have minds of their own, don’t fall for crap like that.

  5. There is a commentator here in Las Vegas that said it pretty well. One branch of our government is pretty adamant that the general public not feed wild animals because it makes them dependent on the handouts. What makes the general public thing any differently when another branch of the government gives them free food. Does it not make them have no desire to work?!?

    • Hey Kim, Just because some commentator says it, so you believe it? There’s a big part of the problem. You’re a part of the problem. Feeding wild animals doesn’t make them dependent on handouts, it cause them to lose their fear and wariness of humans, which can pose future dangers for tourists, hikers, campers, fishermen, climbers, etc. That is the problem. Go read up on it. do some research before you comment. Your Las Vegas commentator obviously didn’t. Then again, that person and others like him/her doesn’t have to, because so many like yourself, are programmed to believe whatever crap comes out of their mouths.

      Wow, way too many people believe what the talking heads say, just because they’re indoctrinated to believe them.

      • Except in this case, the “talking head” was dead-bang right. Why would a bear try to chase down an elk calf or stand in an icy river trying to catch a fish when they can go to the nearest human habitat and have someone throw them a bag of french fries or a loaf of bread? By the same reasoning, why would some guy spend his days pounding the pavement looking for a job when he can go to the nearest government office, sign a few papers and get “free” food, medical care, housing, day care, education, and even transportation?

        • You’re comparing apples to oranges, Pappadave. You’re comparing Human behavior within in what is called “civilized society”, and which has never existed before in nature, or was ever a part of any other species’ “lifestyle”, to that of predators who have to hunt for every meal. Comparisons as such, are idiotic. They are a sure sign that people who say stuff like this, blindly believe and follow what has been told to them, as I’ve said previously. The politicians and their sheeplike followers, resort to using asinine, senseless, comparisons, in hopes that others might fall for it, or worse; that they might themselves believe it.

          The Las Vegas commentator was wrong. Too many of them talk without thinking, or engage in deliberate deception, for purely partisan political reasons, which happens to be, the number one problem in America, and the source of most other of our nation’s problems.

  6. Before I ever entered the world of monthly salary vs punching the time clock I found how disappointing overtime was. Turned out that more than 4 hours of overtime per week would put me in a higher tax bracket and my overtime hours were equivalent to working for less than minimum wage. Needless to say, when asked to work extra I would immediately ask if ‘Joe’ could do it. I would if necessary but there was very little reward in the extra hours.

  7. THIS COULD BE DRASTICALLY SLOWED BY ONE MOVE.
    IF YOU WON’T WORK YOU DON’T VOTE.

  8. “the president said to me, ‘We don’t have a spending problem.’ We spend the money… No Problem.”
    Whoever gets his job next is getting a far bigger mess than Carter left Reagan.

    We could all decide to not pay federal taxes, but most people are too chicken to do it first. the fed would probably figure out another source if the IRS went down. Maybe all the states should secede from the union and let the head die from neglect. Then start over fresh.
    Wipe out 99% of the laws that aren’t even needed. Too many lawyers – they can go somewhere else or pick up a new trade like farming.

    • Or a far bigger one, than Bush left Obama.

      I agree about Lawyers. They are the root problem, behind the bane that is the political system.

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