The Obama administration is going to have a difficult time, justifying a recent report that has come out, concerning the upward trend on federal welfare spending. Actually, welfare has risen a whopping 32% in the last 4 years, so the ‘Obama phone’ video might be pretty indicative of the President’s plan to ‘help’ the impoverished. The Washington Times reports:
Welfare spending has grown substantially over the past four years, reaching $746 billion in 2011 — or more than Social Security, basic defense spending or any other single chunk of the federal government — according to a new memo by the Congressional Research Service.
Yes, one of the bigger reasons why welfare spending has grown under the Obama administration is because ‘the middle class has been buried the last four years’. The economy has taken a beating to the point that now 1 in 6 Americans are below the poverty line. However, the main reason for the welfare increase is that Washington has reduced the qualifications necessary to receive welfare, as stated in the article:
The steady rise in welfare spending, which covers more than 80 programs primarily designed to help low-income Americans, got a big boost from the 2009 stimulus and has grown, albeit somewhat more slowly, in 2010 and 2011. One reason is that more people are qualifying in the weak economy, but the federal government also has broadened eligibility so that more people qualify for programs.
Economically speaking, this problem is turning into a downward spiral of sorts. For instance…
The economy tanks, putting incomes down, putting people out of work, and putting Americans in the welfare lines. At the same time, the feds allow more folks to receive welfare by broadening eligibility . So, the amount of folks on welfare increases dramatically, making the US taxpayer shell out even more dollars to support the welfare demand. Of course, folks that can work fulltime jobs produce more for the economy, but when people can’t find jobs, they end up in welfare lines. Broadened welfare eligibility reduces the incentive to search for that magical 40-hour work week, which means that the economy suffers even more because people who would otherwise be producing are not.
Which brings us to the conclusion…
No, Mr. President, an addiction to welfare spending will not help Americans. It only hurts us in the long run.