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Welfare Is What’s Eating the Budget
Wall Street Journal ^ | 09/12/2024 | WSJ edutorial

Posted on 09/12/2024 8:05:19 AM PDT by RicocheT

Ask any budget expert in Washington to explain the ballooning deficit and debt, and Social Security and Medicare will be high on the list of causes. That’s wrong. The real driver, the elephant in the room, is means-tested social-welfare spending—Medicaid, food stamps, refundable tax credits, Supplemental Security Income, Temporary Assistance for Needy Families, federal housing subsidies and almost 100 other programs whose eligibility is limited to those below an income threshold.

True, Social Security and Medicare are a drain on general revenue and will become big fiscal problems if not reformed. But they aren’t the major source of our current fiscal crisis, because both are financed in large part by dedicated payroll taxes. Since its inception, Social Security has produced cash surpluses 60% of the time. In 2023 Social Security payroll taxes funded 88.9% of benefits. The cost of Social Security’s Old-Age, Survivors and Disability Insurance program, net of payroll tax collections, was only $88.1 billion. Medicare payroll taxes and premiums funded 49.7% of Medicare expenditures, producing a net cost of $509 billion.

Means-tested social-welfare spending totaled $1.6 trillion in 2023. Welfare spending now absorbs an astonishing 72.6% of unobligated general revenue (total revenue net of Social Security and Medicare payroll taxes and premiums and mandatory interest on the public debt) and is larger than the claims against unobligated general revenue by Social Security (4.1%), Medicare (23.5%) and defense (37.2%) combined.

(Excerpt) Read more at wsj.com ...


TOPICS: Business/Economy; Editorial; Government; Politics/Elections
KEYWORDS: budget; housing; inflation; medicare; mmt; nationaldebt; stopthespending; wealthredistribution; welfare; welfarestate
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Demand for reform would be even stronger if the public understood how generous social-welfare benefits are. In reporting household income, the Census Bureau doesn’t count 88% of transfer payments made to households that are defined as being poor. The census doesn’t count refundable tax credits (for which the beneficiary receives a check from the Treasury), food-stamp debit cards, free medical care through Medicaid, or benefits from about 100 other federal transfer payments as income to welfare recipients. When those benefits are counted as income, 80% of those who are today counted as being poor are no longer poor, and almost half have incomes equivalent to American middle-income earners.
1 posted on 09/12/2024 8:05:19 AM PDT by RicocheT
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To: RicocheT

Obama disabled more people than WW2


2 posted on 09/12/2024 8:06:53 AM PDT by AppyPappy (Biden told Al Roker "America is back". Unfortunately, he meant back to the 1970's)
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To: AppyPappy

It’s over. Tell me how it isn’t.


3 posted on 09/12/2024 8:08:29 AM PDT by DIRTYSECRET
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To: RicocheT

Absolutely! And California is the #1 receiver of these tax dollars.


4 posted on 09/12/2024 8:10:04 AM PDT by Openurmind (The ultimate test of a moral society is the kind of world it leaves to its children. ~ D. Bonhoeffer)
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To: RicocheT

Why don’t we start with the illegals -

Illegal invaders
Illegal wars
Illegal foreign “aid”
Illegal foreign entanglements

Then we’ll see about phase II.


5 posted on 09/12/2024 8:15:04 AM PDT by Thorium90
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To: RicocheT
That’s wrong. The real driver, the elephant in the room, is this:


6 posted on 09/12/2024 8:15:38 AM PDT by caww (O death, when you seized my Lord, you lost your grip on me......)
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To: RicocheT

I can’t see how it gets reformed. DC is too bloated, too woke, too addicted to debt.

The only reform will be economic and fiscal collapse.


7 posted on 09/12/2024 8:17:13 AM PDT by PGR88
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To: RicocheT

A reminder that welfare is payment to not riot. So when the payments end............................


8 posted on 09/12/2024 8:17:43 AM PDT by PeterPrinciple (Thinking Caps are no longer being issued but there must be a warehouse full of them somewhere.)
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To: RicocheT

Welfare for the World Is What’s Eating the Budget


9 posted on 09/12/2024 8:17:47 AM PDT by butlerweave
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To: RicocheT

brandon is tapping into SS & Medicare to fund the migrants.

get ready for CUTS to US tax payers medicare benefits in order to pay for migrant care


10 posted on 09/12/2024 8:18:56 AM PDT by thinden (buckle up ....)
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To: RicocheT

Eventually we will run out, no more businesses that make anything, and the govt will fall. Good days. Like the fall of the USSR. Can’t stop progress.


11 posted on 09/12/2024 8:19:56 AM PDT by If You Want It Fixed - Fix It
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To: RicocheT

I believe there is a solution, but not a solution that the current communist regime would allow. Welfare reform under my solution would require all able-bodied recipients under 62 to work for those benefits. This would especially include all “migrants” on welfare.

Under a regime like Trump’s... manufacturing could be brought back to the US and these welfare recipients could provide the labor needed... no unions allowed. Some might call the work I would recommend to be paid at “slave wages”... but in actuality, it’s more aligned with the commie ideal of “everyone contributes” what they can.

This reform could eventually push many out of the welfare system and “encourage” them to get real jobs paying better wages. This reform would also teach low/no-skilled workers a skill, of sorts. Assembly work is a skill. It would teach them to be responsible citizens that contribute vs. those that merely drain the system. It would give them a stake in the future of this nation, the one they have chosen to come to illegally.

For any of these welfare recipients that refused to work, they would be cut off and, if possible, returned to their country of origin.

I would also put prisoners to work in this same manner (instead of license plates, electronics assembly) paying back taxpayers for the free room and board (and education) that they were given previously. If they’re going to vote against the welfare of the nation by voting Democrat if or when they get out of prison, might as well make them work for the freebies while they’re in.

If this sounds harsh, maybe it is. But it would go a long way towards saving the nation from the impending economic collapse under radical leftists. That, along with no more US cash going to other nations, friendly or otherwise... America first.

None of these changes would ever be allowed by the Marxist left, however... since saving the nation is 100% against their current agenda.


12 posted on 09/12/2024 8:24:35 AM PDT by Danie_2023
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To: RicocheT

Workfare, instead.


13 posted on 09/12/2024 8:25:42 AM PDT by ConservativeMind (Trump: Befuddling Democrats, Republicans, and the Media for the benefit of the US and all mankind.)
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To: RicocheT

And as of today (9/12/24) the US has spent more than one TRILLION dollars on interest on the debt in this fiscal year.

Meanwhile, Congress tries to pass a continuing resolution to kick the can farther down the road.


14 posted on 09/12/2024 8:27:15 AM PDT by motor_racer ("Show me the man and I'll show you the crime" - Lavrentiy Beria, J. Stalin Deputy Premier)
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To: RicocheT
And how many of these people are actually working but unable to meet their daily needs due to corporations not paying their employees? They do stock buybacks to enrich the shareholders but do not pass that on to the employees.

Here's an idea: Tax the corporations for every employee they have that is on benefits. The government recoups the loss and hopefully the employees get a nice raise.

15 posted on 09/12/2024 8:32:37 AM PDT by nonliberal (Russia is not my enemy.)
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To: RicocheT

Unfortunately the entitlements identified in the article will be the end of the American experiment, all brought to you by greedy power mad politicians mainly of a leftist bent. Nothing will be done to cure the spending before it eats all of us.


16 posted on 09/12/2024 8:44:43 AM PDT by VTenigma (Conspiracy theory is the new "spoiler alert")
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To: RicocheT

It’s eating not only “the” budget, it’s eating your budget and mine. But...


17 posted on 09/12/2024 8:52:29 AM PDT by Buttons12 ( Pipe down + pay up, protection rackets don't want your approval.)
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To: RicocheT

Of course it is, this is how the DNC buys votes. Look at Britain for where this will take us in very short course.


18 posted on 09/12/2024 8:52:50 AM PDT by LambSlave
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To: RicocheT

For 50 years, 50 years, money has been taken from me to “even things out”.

50 years

Five decades

Half a century.

All we have done is make The Democrat Party Organized Crime Families rich.


19 posted on 09/12/2024 8:53:43 AM PDT by blueunicorn6 ("A crack shot and a good dancer” )
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To: blueunicorn6

You are completely giving the Republican crime families a pass they are ALL in on this BOTH PARTIES!!!


20 posted on 09/12/2024 8:58:47 AM PDT by Trump Girl Kit Cat (Yosemite Sam raising hell)
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