We’ve Spent $22 Trillion on War on Poverty. What Have We Achieved?
Since President Lyndon Baines Johnson declared “war on poverty,” U.S. taxpayers have spent $ 22 trillion on so-called anti-poverty programs—a figure slightly less than the national debt.WHEN LYNDON JOHNSON CREATED THE MODERN WELFARE STATE IN 1964.. HE SAID...
"These Negroes, they're getting pretty uppity these days and that's a problem for us since they've got something now they never had before, the political pull to back up their uppityness. Now we've got to do something about this, we've got to give them a little something, just enough to quiet them down, not enough to make a difference... I'll have them niggers voting Democratic for the next two hundred years".
In 1969, just 2.8 million Americans received food stamps. Today, over 47 million Americans are on food stamps. One contributing factor to the massive expansion of the food stamp program is the crony capitalism that has cropped up around the anti-poverty program.
Soda makers, for example, bag an estimated $4 billion a year in taxpayer money through the food stamp program. Efforts to kill the so-called “soda subsidy” have been met with fierce resistance and lobbying by the soda industry.
In Florida, State Senator Ronda Storms (R-Valrico) introduced a bill last year that would keep taxpayer-funded SNAP benefits from being spent on non-essential items like sodas, candy, chips, ice cream, and other junk foods.
“The biggest opponents I have right now are Coca Cola, the soda companies, the chip companies and the convenience store operators,”
“We are talking about a government benefit,” said Wood. “And therefore, in my mind, we can restrict how that benefit is utilized.”
Companies that administer Electronic Benefits Transfer (EBT) cards profit when the welfare rolls swell. Since 2004, for example, JP Morgan, which donated $808,799 to Barack Obama in 2008, has made at least $560,492,596 running EBT programs for 18 states.
Despite the $15 trillion U.S. taxpayers have spent since the war on poverty’s inception, poverty in America is largely unchanged. This week, figures from the U.S. Census Bureau revealed that nearly 50 million Americans live below the federal poverty line.
It’s been 50 years now since the federal government launched its “War on Poverty.” But the numbers just released by the Census Bureau suggest we’re in a losing battle.
The poverty rate now stands at 14.5 percent. That’s a drop from the previous rate of 15 percent. But don’t celebrate too quickly. The new rate is almost exactly the poverty rate we had in 1967, only three years after President Lyndon Johnson announced his war.
To put it in further perspective: The poverty rate in 1950 was 32.2 percent. It dropped steadily throughout the ’50s, and had been nearly cut in half before the War on Poverty began. After that, the rate declined slightly, then leveled out.
More than 100 million — about one third of the U.S. population — receives aid from at least one welfare program.
That was $22 trillion ago. That’s right, trillion with a “t.” A 22 with 12 zeros behind it. To understand how much that is, if you laid a trillion $1 bills end to end, they would reach the sun. Now multiply that by 22. That’s enough for 11 round trips.
In short, it’s a lot of money. Yet the poverty rate is essentially the same as it was 50 years ago.
The federal government runs more than 80 means-tested welfare programs that provide cash, food, housing and medical care to low-income Americans. Federal and state spending on these programs last year was $943 billion (not counting Social Security, Medicare or unemployment insurance).
This money is going to a lot of people. More than 100 million — about one third of the U.S. population — receives aid from at least one welfare program. The average cost per recipient in 2013? $9,000. If converted into cash, current means-tested spending is five times what’s needed to eliminate all poverty in the United States.
So how can the poverty rate be practically the same? You have to understand two things.
One is that, incredibly, the Census Bureau counts almost none of the $943 billion in yearly welfare spending as family “income.” It acts as though that money doesn’t exist. And because the government counts a family as poor if its income falls below specified thresholds, a lot of people are being, in essence, mislabeled as poor.
That leads to the second thing we have to understand. When most people hear that a family is living in poverty, they naturally picture people suffering from significant material deprivation. They imagine people without enough food or clothing, or without a decent roof over their heads.
Sadly, of course, such conditions do exist for some Americans. But government surveys show that many of those officially designated as poor are surprisingly well-off.
Less than 2 percent are homeless, and only one in 10 live in mobile homes. The typical house or apartment of the poor is in good repair and uncrowded. Indeed, the typical “poor” family has air conditioning, cable or satellite TV, and a computer in the home. Forty percent have a wide-screen HDTV. Another 40 percent have Internet access.
So should we consider War on Poverty to be a success? Hardly. It was designed, according to Johnson, to increase self-sufficiency. Individuals and families who needed a hand up would get it, but the ultimate goal was to shrink the welfare rolls and transform the poor, Johnson said, from “tax-eaters” to “taxpayers.”
“Judged by that standard, the War on Poverty has been a colossal flop,” writes poverty expert Robert Rector of the Heritage Foundation. “The welfare state has undermined self-sufficiency by discouraging work and penalizing marriage.”
Fifty years ago, only 7 percent of children were born outside of marriage, which remains the single greatest weapon against child poverty. Today, it’s 41 percent.
Yet President Obama plans to spend $13 trillion over the next decade on welfare programs that discourage work and marriage.
It’s time to turn this around. According to Mr. Rector, able-bodied recipients of cash, food and housing should be required to work or prepare for work as condition of receiving aid. Welfare’s penalties against marriage should be reduced.
In short, it’s time to return to Johnson’s original vision to “replace their despair with opportunity.”
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DO YOU KNOW THAT OVER $22 Trillion HAS BEEN SPENT and THERE IS NOTHING ..... YES Nothing to Show for It!
They have taxed and borrowed and stolen Money from American Tax Payers to prop up this CON!!
Twenty Two trillion dollars: That’s how much American taxpayers have forked over in the name of helping the poor since 1964. And what do we have to show for it? A poverty rate that has barely budged, an entrenched bureaucracy, and a population — like that of Greece and Portugal, two welfare-state basket cases — increasingly dependent on government handouts.
These are the conclusions of a recent Cato Institute report on the American welfare state by Michael Tanner, Cato’s director of health and welfare studies and author of The Poverty of Welfare: Helping Others in Civil Society. It is hardly an encouraging read, to say the least.
When President Johnson declared war on poverty nearly half a century ago, writes Tanner, “the poverty rate in America was around 19 percent and falling rapidly.” Increasing prosperity brought about by the free market, coupled with strong civil institutions such as churches, charities, and fraternal organizations, was already accomplishing the unthinkable: making poverty, the general condition of mankind throughout most of history, a rarity in the United States. A rising tide, as Johnson’s predecessor observed, does indeed lift all boats.
The man at the helm of the ’64 ship of state, however, decided the tide wasn’t rising quickly enough and so he would help it along by filling buckets with water from the port side of the ship and emptying them on the starboard side. Not surprisingly, this strategy failed to increase the water level. Thus, despite $12 trillion in federal welfare spending and $3 trillion in state and local government welfare spending over the past 48 years, says Tanner, “the poverty rate never fell below 10.5 percent and is now at the highest level in nearly a decade” — 15.1 percent and climbing. “Clearly,” he adds, “we have been doing something wrong.”
Of course, that all depends on how one defines success in the war on poverty. For those on the receiving end of government handouts — not just the poor but also those paid to provide services to them, such as doctors and landlords — success is getting more taxpayer dollars every year; and by that standard, the war has been a remarkable achievement. “Government spends $20,610 for every poor person in America, or $61,830 per poor family of three,” Tanner reports. “Given that the poverty line for that family is just $18,530, we should have theoretically wiped out poverty in America many times over.”
The war on poverty has also been a rousing success for the bureaucracy. At the federal level alone there are now 126 separate anti-poverty programs administered by seven different cabinet agencies and six independent agencies. Then there are the hordes of social workers and government employees who administer the various programs. All of these people have a vested interest in the programs’ continuation and expansion. As a result, “anti-poverty programs are usually more concerned with protecting the prerogatives of the bureaucracy than with actually fighting poverty,” Tanner avers.
Needless to say, taxpayers have been the big losers in the war. Federal welfare spending has risen 375 percent (in constant 2011 dollars) since 1965. Total welfare spending has climbed almost as much: Governments are now disbursing $908 billion a year to alleviate poverty, up from $256 billion (also in constant dollars) in 1965. Moreover, notes Tanner:
Over the last decade the increase has been even more rapid. Federal welfare spending increased significantly under the Bush administration, but President Obama has thrown money at anti-poverty programs at an unprecedented rate. Since taking office, the Obama administration has increased spending on welfare programs by more than $193 billion.
While some of the spending hikes under Obama can be attributed to the recession, Tanner writes, “part of the program’s growth is due to conscious policy choices by this administration to ease eligibility rules and expand caseloads.” This, he points out, “undid many of the incentives contained in the 1996 Clinton welfare reform, which helped states to reduce welfare rolls.” As a result, the administration projects that “combined federal and state welfare spending will not drop significantly once the economy fully recovers,” with the annual tab reaching $1 trillion in 2014 and the 10-year total hitting $10.3 trillion — an amount that, Tanner calculates, comes to “$250,000 for every American currently living in poverty, or $1 million for every poor family of four.”
If all that money could really eradicate poverty, perhaps it would be worth it (constitutional and moral issues aside). Unfortunately, as we have seen, the massive amount of money already spent on that objective has failed to make a dent in the poverty rate. “In fact,” observes Tanner, “the only appreciable decline [in the poverty rate] occurred in the 1990s, a time of state experimentation with tightening welfare eligibility, culminating in the passage of national welfare reform.” The poor, despite the unprecedented redistribution of wealth in their favor, have been losers, too.
“The vast majority of current programs are focused on making poverty more comfortable — giving poor people more food, better shelter, health care, and so forth — rather than giving people the tools that will help them escape poverty,” Tanner remarks. “The best way to create wealth,” he explains, “is not through government action, but through the power of the free market.”
That means that if we wish to fight poverty, we should end those government policies — high taxes and regulatory excess — that inhibit growth and job creation. We should protect capital investment and give people the opportunity to start new businesses. We should reform our failed government school system to encourage competition and choice. We should encourage the poor to save and invest.
We should also set about shrinking all government transfer payments, not just those directed specifically at the poor. One of the ways politicians have bought off middle-class voters who oppose welfare for the poor is to offer those voters their own form of welfare such as Social Security and Medicare. Because of this, “government payouts, including middle-class entitlements, now account for more than a third of all wages and salaries in the United States,” according to Tanner. “Worse, if one includes salaries from government employment, more than half of Americans receive a substantial portion of their income from the government.”
“Any way that you look at it, we are rapidly becoming a society where more and more people rely on the government for their support.”
This is why our government is already nearly $18 trillion in debt with many more trillions of dollars in unfunded liabilities as far as the eye can see. It is also why European welfare states are in their current precarious positions.
The grip of government dependence must be broken not just for the poor but for everyone. It is the only way to save both our dignity and our country’s financial future.
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