Tag Archives: #porkulus

Today's Fact: You, Too May Qualify for a Free Car!

Fact:  Massachusetts has a program for giving some welfare recipients a vehicle.

Notice the word “giving” was used. The word was used purposefully. Welfare receipients who receive a car from the state government keep them, forever, even when they are off of the program.

While on the program, those eligible recipients also receive state subsidized car insurance, and AAA membership.

I find the timing on this story interestingly convenient as my high school senior was just finishing up an Economics paper yesterday. The theme of the paper was focused on the fact that most governmental economic decisions are made without much thought about the long term or general impact of the policy.

To prove the theory, my student focused on minimum wage and welfare. He cited a true but weaker example that welfare recipients are afraid of going off of welfare because of the security blanket it provides and how long it takes to get back on. If they just stay on assistance permanently, their lives are more stable. True, but perhaps not the best example. In an assignment calling for about 750 words, its best to use the strongest example and reasoning you can find.

One of the biggest problems with welfare traditionally is that it’s overall benefits actually pay more than low wage jobs, particularly when you account for all of the assistance most programs provide such as Medicaid, subsidized housing, and food stamps. And that doesn’t begin to take in to account any of the other, tangential benefits such as school lunch programs, energy assistance, or educational subsidies like Pell Grants.

A 1995 Cato Institute study bears out the theory that welfare pays more. In that study, the welfare benefits measured paid the recipient and average of $10 per hour, compared to an average of $8 per hour for an unskilled wage.

And why is a 1995 study relevant? Because the Stimulus Bill rolled back welfare reform and added to it. And based on the general direction of Obama administration policy and the bent of Congress, it seems likely that there will be even more “investment” in this area going forward.

Regardless of whether or not the Stimulus Bill added to welfare, if one accepts the premise that welfare reform was rolled back, in today’s dollars (admittedly a rather nebulous concept) $8 an hour would be equivalent to $12 per hour, while $10 would be equivalent to $15.

Add a free car, insurance, and emergency road-side services.

What would you do, in absence of personal pride? Would you go get a job at flipping burgers at McDonald’s, stocking shelves at Wal-Mart, or straightening up the clothes on an Old Navy table paying $9 – $12 an hour so as to work your way up the chain over time and lose your benefits?

Or would you stick with the benefits you are receiving?

Fact:  Welfare is a trap. It’s a trap for the people receiving it, a trap for the economy, and a trap for the taxpayers.

Press Release for Nebraska Tea Party "Pork" Protest Rally

P R E S S    R E L E A S E

FOR IMMEDIATE RELEASE

Saturday, March 14, 2009

Nebraskans to Conduct Protest Rally in Front of Sen. Ben Nelson’s Office Tommorow

Sunday, March 15 at 2:00PM

For additional information regarding event visit http://nebraskateaparty.wordpress.com/

A group of concerned Nebraska citizens has organized a Rally to be conducted this Sunday, March 15, at 2:00PM in front of Senator Ben Nelson’s office in downtown Lincoln. The primary purpose of the Rally is to send a message to the Senator regarding his key role in passing and his “Yes” vote on the Stimulus Bill that was signed by President Obama on February 17. This group’s overall mission is to encourage public policy that promotes limited government, free markets, and individual liberty.

To get the word out about the Rally, the organizers have appeared on a few talk radio programs, promoted through many venues on the internet, made phone calls, sent emails, and have traveled throughout the area distributing business-sized cards with all pertinent event information.

Attendees are being asked to bring a can of “PORK” & Beans to the Rally to show their dismay about the number of unnecessary spending programs that were included in the bill. The collected can goods will be donated to a local food pantry or family shelter.

The group of organizers wish to provide their fellow Nebraskans an opportunity to have their voices heard and show them they are not alone in their deep concern about the reckless spending, rewards for failure, and inclusion of unrevealed increased government regulation and intrusion into the lives of all Americans that has been assured by the passage of the Stimulus Bill, TARP, mortgage rescue plan, and other bills recently and currently before Congress.

Particularly, the Rally is intended to send a message to Sen. Ben Nelson, who played a key role in assuring the Stimulus Bill’s passage through his negotiations with the only Republican Senators who voted for the bill; Snow, Collins, and Specter. When initial details of the Stimulus were presented to the House of Representatives, Sen. Nelson expressed concern. For example, during a Jan. 30th interview, “Nelson emphasized to [Fox News's Bill] Hemmer that he’s not  ‘as concerned’ about the size of the bill, but that some of ‘the actual ingredients within the program’ were only ‘marginally stimulative’.

(1)Despite Sen. Nelson’s initial statements and great show of making improvements, the final version of the bill was changed very little from the original. The Congressional Budget Office’s review noted that the bill, at best, may provide a short term jolt to the economy, but would ultimately be more harmful than doing nothing at all .**

(2). It is problematic that Sen. Nelson was at no point concerned about the bill’s “size”, considering the amount of debt and unfunded obligations the United States has been accumulating. The stated National Debt is almost $11 Trillion dollars, which is nearly  $14 Trillion, the amount of GDP for a fiscal year.*

(3). Unfunded obligations which included Social Security, Medicare, Medicaid, bailouts, and amounts at risk in further guarantees now total nearly $60 Trillion***.

(4). In order to fund the Feb. 17 Stimulus Bill, the government must borrow from foreign countries and the Treasury must print more money. This endangers the U.S. credit rating, ensures higher taxes in the future, and will almost certainly lead to very high inflation; which is just another form of taxation.

References:

* Thing Progress Post, January 30, 2009 includes video embed, Sen. Nelson interview: http://thinkprogress.org/2009/01/30/nelson-stimulus-bill/

**Washington Times Article, “CBO: Obama Stimlus Harmful Over Long Haul”, http://www.washingtontimes.com/news/2009/feb/04/cbo-obama-stimulus-harmful-over-long-haul/

***Institute for Truth in Accounting http://www.truthin08.org

****CIA World Factbook https://www.cia.gov/library/publications/the-world-factbook/geos/us.html

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