Saturday, March 28, 2015

I found this article while I was still searching how much money taxpayers contribute to welfare and it was refreashing to me that not everyone is trying to abolish the help to the "truly" needy!!

http://www.washingtonpost.com/blogs/wonkblog/wp/2014/01/12/no-we-dont-spend-1-trillion-on-welfare-each-year/

THE WASHINGTON POST: "NO, WE DON'T SPEND $1 TRILLION ON WELFARE EACH YEAR" 

On the contrary to many opposing arguments that are trying to make welfare system look bad this article describes how conservatives try to manipulate they way they share information to make it seem worse than it actually is ....

The claim about $1 trillion on “welfare” is more interesting and complicated. It shows up in this recent report from the Cato Institute, which argues that the federal government spends $668 billion dollars per year on 126 different welfare programs (spending by the state and local governments push that figure up to $1 trillion per year).
Welfare has traditionally meant some form of “outdoor relief,” or cash, or cash-like compensation, that is given to the poor without them having to enter an institution. As the historian Michael Katz has documented, the battle over outdoor relief, has been a long one throughout our country’s history.
However, this claims says any money mostly spent on the poor is “welfare.” To give you a better sense here, the federal spending breaks down into a couple of broad categories. Only about one-third of it is actually what we think of as “welfare”:
1) Cash and cash-like programs: As Michael Linden of Center for American Progress told me, there are five big programs in the Cato list that are most analogous to what people think of as “welfare”: The refundable part of the Earned Income Tax Credit ($55 billion), Temporary Assistance for Needy Families ($21 billion), Supplemental Security Income ($43.7 billion), food stamps ($75 billion), and housing vouchers ($18 billion) and the Child Tax Credit. All together, that’s around $212 billion dollars."
2) Health care: This is actually the biggest item on Cato’s list. Medicaid spends $228 billion on the non-elderly population, and children’s health insurance plan takes up another $13.5 billion. This is also roughly a third as well.
3) Opportunity-related programs: These are programs that are broadly related to opportunities, mostly in education or job-training. So you have things like Title 1 grants ($14 billion) and Head Start ($7.1 billion) in this category. But as Center on Budget and Policy Priorities’ Donna Pavetti notes, these programs don’t all go to poor people. For instance, Title I benefits school districts with a large share of poor children, however that money will help non-poor students attending those schools.
4) Targeted and community programs: What remains are programs designed to provide certain services to poor communities, which make up the bulk of the number of programs. Adoption assistance ($2.5 billion) and low income taxpayer clinics ($9.9 million) are two examples here.
So what should we take away from this?
--The federal government spends just $212 billion per year on what we could reasonably call “welfare.” (Even then, the poor have to enter the institution of waged labor to get the earned income tax credit.) And there have been numerous studies showing that these programs, especially things like food stamps, are both very efficient and effective at reducing poverty. They just don’t show up in the official poverty statistics, because that’s how the poverty statistics are designed.




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