Sunday, October 28, 2012

The entitlement-welfare state is dead

George Will's Wapo column this week produced some frightening statistics that anyone considering a vote for Obama should study and think about the consequences of their vote.  As Will points out the actual growth rate of the dependency culture entitlements has grown faster under Republican administrations than Democrat ones.  Thus those of us who have reflexively voted Republican over the years on the grounds that while Republicans are also guilty of supporting big government policies, they were the lesser of two evils in that they didn't espouse as many big government programs as Democrats, have been wrong.  As it turns out we have been on a path to collapse, at least in recent years, since Hoover and FDR launched government intervention in the market big time in the 1930s.  It is painfully clear that we've reached the tipping point of  the ability of the government to fund entitlements and the welfare state.  Collectivism and the welfare state stop working when, as Margaret Thatcher said, "eventually socialists run out of other people's money".  And so now we have to either tax the few with any wealth left to the point we are all equally poor, or we have to roll back the entitlement state,  rekindle real capitalism and the incentives to work.  While the Romney-Ryan ticket is Republican, one has to hope they mean it this time and do intend to reign in the welfare state, offer pro business incentives and let the free market provide opportunities for people to find work.  There doesn't seem to be any other choice as Obama wants to continue expanding the role of government by taxing the rich.  Here are a few choice stats from Will's article:


Beginning two decades after the death of Franklin Roosevelt, who would find today’s government unrecognizable, government became a geyser of entitlements. In 2010, government at all levels transferred more than $2.2 trillion in money, goods and services to recipients — $7,200 per individual, almost $29,000 per family of four. Before 1960, only in the Depression years of 1931 and 1935 did federal transfer payments exceed other federal expenditures. During most of FDR’s 12 presidential years, income transfers were a third or less of federal spending. But between 1960 and 2010, entitlements exploded from 28 percent to 66 percent of federal spending. By 2010, more than 34 percent of households were receiving means-tested benefits. Republicans were more than merely complicit, says Eberstadt:“The growth of entitlement spending over the past half-century has been distinctly greater under Republican administrations than Democratic ones. Between 1960 and 2010, the growth of entitlement spending was exponential — but in any given year, it was on the whole over 8 percent higher if the president happened to be a Republican rather than a Democrat. . . . The Richard Nixon, Gerald Ford and George W. Bush administrations presided over especially lavish expansions of the entitlement state.”Why, then, should we expect Romney to reverse Republican complicity? Because by embracing Paul Ryan, Romney embraced Ryan’s emphasis on the entitlement state’s moral as well as financial costs.As evidence of the moral costs, Eberstadt cites the fact that means-tested entitlement recipience has not merely been destigmatized, it has been celebrated as a basic civil right. Hence the stunning growth of supposed disabilities. The normalization and then celebration of dependency help explain the “unprecedented exit from gainful work by adult men.”Since 1948, male labor force participation has plummeted from 89 percent to 73 percent. Today, 27 percent of adult men do not consider themselves part of the workforce: “A large part of the jobs problem for American men today is not wanting one.” Which is why “labor force participation ratios for men in the prime of life are lower in America than in Europe.”One reason work now is neither a duty nor a necessity is the gaming — defrauding, really — of disability entitlements. In 1960, an average of 455,000 workers were receiving disability payments; in 2011, 8.6 million were — more than four times the number of persons receiving basic welfare benefits underTemporary Assistance for Needy Families. Nearly half of the 8.6 million were “disabled” because of “mood disorders” or ailments of the “musculoskeletal system and the connective tissue.” It is, says Eberstadt, essentially impossible to disprove a person’s claim to be suffering from sad feelings or back pain.“In 1960,” Eberstadt says, “roughly 134 Americans were engaged in gainful employment for every officially disabled worker; by December 2010 there were just over 16.” This, in spite of the fact that public health had improved much, and automation and the growth of the service/information economy had made work less physically demanding. Eberstadt says collecting disability is an increasingly important American “profession.”For every 100 industrial workers in December 2010, there were 73 “workers” receiving disability payments. Between January 2010 and December 2011, the U.S. economy created 1.73 million nonfarm jobs — but almost half as many (790,000) workers became disability recipients. This trend is not a Great Recession phenomenon: In the 15 years ending in December 2011, the United States added 8.8 million nonfarm private sector jobs — and 4.1 million workers on disability rolls.The radiating corruption of this entitlement involves the collaboration of doctors and health care professionals who certify dubious disability claims. The judicial system, too, is compromised in the process of setting disability standards that enable all this.America’s ethos once was what Eberstadt calls “optimistic Puritanism,” combining an affinity for personal enterprise with a horror of dependency. Nov. 6 is a late and perhaps last chance to begin stopping the scandal of plundering our descendants’ wealth to finance the demands of today’s entitlement mentality.

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