Biden’s BIG-Government

Here are the two articles mentioned in the below audio by Armstrong and Getty (Hour 1 Thursday, and Hour 3 – same day):

  • America’s Welfare State Is on Borrowed Time — Biden has fully embraced the mad goal of giving 98% of the population lavish benefits at no cost. (WALL STREET JOURNAL | THE RED LINE [no pay wall])
  • Democrats Are Killing the American Dream — Joe Biden’s American Families Plan replaces individual striving with middle class entitlements. (WALL STREET JOURNAL | BLACK REPUBLICAN)

REASON.COM has been on fire as of late:

 

 

The Myth Of American Inequality (Armstrong & Getty)

Armstrong and Getty read from and discuss a bit an article in the WALL STREET JOURNAL entitled: The Myth Of American Inequality. See more via my post titled, “Wealth Inequality in America – Critiques On Inequality” (The below video was the update to that post)

The article is originally found at the WALL STREET JOURNAL, titled:

  • The Truth About Income Inequality: The Census Fails To Account For Taxes And Most Welfare Payments, Painting A Distorted Picture.

Here is the non-paywall article via PECKFORD 42:

Taxes and transfers in the U.S. put its income distribution in line with its large developed peers.

America is the world’s most prosperous large country, but critics often attempt to tarnish that title by claiming income is distributed less equally in the U.S. than in other developed countries. These critics point to data from the Organization for Economic Cooperation and Development, which ranks the U.S. as the least equal of the seven largest developed countries. American progressives often weaponize statistics like these to urge greater redistribution. But the OECD income-distribution comparison is biased because the U.S. underreports its income transfers in comparison to other nations. When the data are adjusted to account for all government programs that transfer income, the U.S. is shown to have an income distribution that aligns closely with its peers.

The OECD measures inequality by determining a country’s “Gini coefficient,” or the proportion of all income that would have to be redistributed to achieve perfect equality. A nation’s Gini coefficient would be 0 if every household had the same amount of disposable income, and it would approach 1 if a single household had all of the disposable income. The current OECD comparison, portrayed by the blue bars in the nearby chart, shows Gini coefficients for the world’s most-developed large countries, ranging from 0.29 in Germany to 0.39 in the U.S.

But there are variations in how each nation reports income. The U.S. deviates significantly from the norm by excluding several large government transfers to low-income households. Inexplicably, the Census Bureau excludes Medicare and Medicaid, which redistribute more than $760 billion a year to the bottom 40% of American households. The data also exclude 93 other federal redistribution programs that annually transfer some $520 billion to low-income households. These include the Children’s Health Insurance Program, Temporary Assistance for Needy Families and the Special Supplemental Nutrition Program for Women, Infants and Children. States and localities directly fund another $310 billion in redistribution programs also excluded from the Census Bureau’s submission.

This means current OECD comparisons omit about $1.6 trillion in annual redistributions to low-income Americans—close to 80% of their total redistribution receipts. This significantly skews the U.S. Gini coefficient. The correct Gini should be 0.32—not 0.39. That puts the U.S. income distribution in the middle of the seven largest developed nations.

Gini scores for other countries in the OECD ranking also might shift with better data: The OECD doesn’t publish transfers by income level for other countries. But the change in income distribution for other countries would likely be less drastic. The poorest fifth of U.S. households receive 84.2% of their disposable income from taxpayer-funded transfers, and the second quintile gets 57.8%. U.S. transfer payments constitute 28.5% of Americans’ disposable income—almost double the 15% reported by the Census Bureau. That’s a bigger share than in all large developed countries other than France, which redistributes 33.1% of its disposable income.

The U.S. also has the most progressive income taxes of its peer group. The top 10% of U.S. households earn about 33.5% of all income, but they pay 45.1% of income taxes, including Social Security and Medicare taxes. Their share of all income-related taxes is 1.35 times as large as their share of income. In Germany, the top 10% pay 1.07 times their share of earnings. The top 10% of French pay 1.1 times their share.

If the top earners pay smaller shares of income taxes in other countries, everybody else pays more. The bottom 90% of German earners pay a share of their nation’s taxes on income 77% larger than that paid by the bottom 90% of Americans. The bottom 90% in France pay nearly double the share their American counterparts pay. Even in Sweden—the supposed progressive utopia—the top 10% of earners pay only 5.9% of gross domestic product in income-related taxes, 22% less than their American peers. The bottom 90% of Swedes pay 16.3% of GDP in taxes on income, 77% more than in the U.S.

Even these numbers understate how progressive the total tax burden is in America. The U.S. has no value-added tax and collects only 35.8% of all tax revenues from non-income-tax sources, the smallest share of any OECD country. Most developed countries have large VATs and collect a far larger share of their state revenue through regressive levies.

When all transfer payments and taxes are counted, the U.S. redistributes a larger share of its disposable income than any country other than France. Relative to the share of income they earn, the share of income taxes paid by America’s high earners is greater than the share of income taxes paid by their peers in any other OECD country. The progressive dream of an America with massive income redistribution and a highly progressive tax system has already come true. To make America even more like Europe, these dreamers will have to redefine middle-income Americans as “rich” and then double their taxes.

Minimum Wage and Jobs (Who Is The Loser?)

PRO TIP: I use a browser separate from my go to that I can erase all the history and cookies in order to open up articles from sites (like Forbes or American Spectator) that regulate how many free articles you can access before a “pay wall” is set up and they block you from access to more. You may need to do this if you follow the links below.

In a continuing discussion [of sorts], some more articles regarding the Davis Bacon Act (coming in a future post) and minimum wage issues have been linked/levied. I do not have time to respond to them all, but I will to some of the major articles. Here I will extend the discussion about employment… but the gist of our positions are as follows:

An article linked by Chris L. was an enjoyable read is from FORBES. While I believe parts of it are wrong, it was a good, digestible size. (And the reason he linked it had to do with a “living wage” 9point #1], but the article – even there – does not support Chris’s contention. Linking that article is actually a train wreck for Chris L., 🤓) HOWEVER, the portion about jobs is in full agreement with my position above. Here is my main point from the author’s seven that is still my main premise:

3) Myth: An increase in the minimum wage is bad for employers

Paying a higher wage to employees can also help employers cut costs in other ways, according to the Center on Budget and Policy Priorities. “Beyond simple supply and demand theory,” reads a comprehensive report on the economics of raising the minimum wage, “increasing the minimum wage may also spur businesses to operate more efficiently and employees to work harder.”

Yes, excellent, so, “more efficiently” is the same as saying “using less labour for the same output”. That is, they’ve just said that business will fire some people as a result of the higher wages. Or, as we keep saying, there will be unemployment as a result.

I believe Chris L. posted this article as a refutation of my position — and I clearly made the points that raising minimum wage leads to loss of jobs (almost always for the poorest among us).

CONTINUING with that article:

5) Myth: It will cost us jobs and raise unemployment

So far, there is no evidence that raising the minimum wage causes an increase in unemployment or job loss. In fact, in a Goldman Sachs analysis of the 13 states which have raised their minimum wage, found that “the states where the minimum wage went up had faster employment growth than the states where the minimum wage remained at its 2013 level.”

“No evidence” is a pretty strict test to have to meet. And that statement is entirely wrong:

We estimate the minimum wage’s effects on low-skilled workers’ employment and income trajectories. Our approach exploits two dimensions of the data we analyze. First, we compare workers in states that were bound by recent increases in the federal minimum wage to workers in states that were not. Second, we use 12 months of baseline data to divide low-skilled workers into a “target” group, whose baseline wage rates were directly affected, and a “within-state control” group with slightly higher baseline wage rates. Over three subsequent years, we find that binding minimum wage increases had significant, negative effects on the employment and income growth of targeted workers. Lost income reflects contributions from employment declines, increased probabilities of working without pay (i.e., an “internship” effect), and lost wage growth associated with reductions in experience accumulation. Methodologically, we show that our approach identifies targeted workers more precisely than the demographic and industrial proxies used regularly in the literature. Additionally, because we identify targeted workers on a population-wide basis, our approach is relatively well suited for extrapolating to estimates of the minimum wage’s effects on aggregate employment. Over the late 2000s, the average effective minimum wage rose by 30 percent across the United States. We estimate that these minimum wage increases reduced the national employment-to-population ratio by 0.7 percentage point.

And:

We review the burgeoning literature on the employment effects of minimum wages – in the United States and other countries – that was spurred by the new minimum wage research beginning in the early 1990s. Our review indicates that there is a wide range of existing estimates and, accordingly, a lack of consensus about the overall effects on low-wage employment of an increase in the minimum wage. However, the oft-stated assertion that recent research fails to support the traditional view that the minimum wage reduces the employment of low-wage workers is clearly incorrect. A sizable majority of the studies surveyed in this monograph give a relatively consistent (although not always statistically significant) indication of negative employment effects of minimum wages. In addition, among the papers we view as providing the most credible evidence, almost all point to negative employment effects, both for the United States as well as for many other countries. Two other important conclusions emerge from our review. First, we see very few – if any – studies that provide convincing evidence of positive employment effects of minimum wages, especially from those studies that focus on the broader groups (rather than a narrow industry) for which the competitive model predicts disemployment effects. Second, the studies that focus on the least-skilled groups provide relatively overwhelming evidence of stronger disemployment effects for these groups.

There may be evidence you’ve not seen, evidence you don’t know about, even evidence you’d prefer not to believe but the statement that there’s no evidence is simply flat out false.

The same author in another FORBES article refutes the idea that there is “no evidence” in the Card/Krugman study, in which the idea is found via Krugman:

  • There’s just no evidence that raising the minimum wage costs jobs, at least when the starting point is as low as it is in modern America. — Paul Krugman

Said author slams this position well! As have I in a past posts:

(More Below Referencing This “Study”)

A N D, here is a article on the same topic via the DAILY SIGNAL:

1. It would be a job-killer.

The Congressional Budget Office report estimated that a $15 minimum wage would lead to 1.3 million lost jobs by the year 2025, with job losses rising over time due to compounding negative impacts.

The exact number of job losses are highly uncertain, but the report says losses would most likely range between zero and 3.7 million, with a not-insignificant chance that losses could exceed 3.7 million.

A 2011 Heritage Foundation estimate was even bleaker. It estimated a $15 minimum wage would lead to 7 million lost jobs.

Some groups have tried to minimize this part of the picture, focusing instead on the 17 million workers who currently earn below $15 that would receive an income boost. But this simply means that for every 13 workers who would get a wage boost, one worker would lose their job entirely.

Considering that a lost job can mean a family loses its home, not to mention a host of other long-term consequences, that doesn’t seem like a trade-off worth making.

One position is right, the other wrong. It may be the fact that most economists actually care about the poor and are not in Cris L.’s world all evil, greedy, GOP’ers… or as he put it: …”you’re going to post a portion of a book by a conservative economist…”

But the issue is not one economist, although he [Thomas Sowell], it really deals with history as most economists sift through it. Here, for example, is an article from FORBES:

In a comprehensive, 182-page summary of the research on this subject from the last two decades, economists David Neumark (UC-Irvine) and William Wascher (Federal Reserve Board) determined that 85 percent of the best research points to a loss of jobs following a minimum wage increase.

As in any academic discipline, there are outliers. But even the outliers are problematic: For instance, the famous (or rather, infamous) New Jersey study that associated a higher minimum with increased employment was later refuted in the same academic journal that originally published it. More recently, the paper that the President relied on to make his case for a higher minimum was debunked in a study published by the National Bureau of Economic Research.

Of course, the goal of minimum wage policy is not to reduce employment, but rather poverty. Indeed, Stevenson says explicitly in her commentary that a higher minimum wage will achieve this end. But empirical evidence refutes her point. Twenty-eight states raised minimum wages in the four years prior to passage of the last federal minimum wage increase. Economists from Cornell and American Universities, writing in the Southern Economic Journal, found no associated reduction in poverty rates….

[As an aside, I have the 182-page summary {book} mentioned in the article… I tried to find it on my book shelves, but, I am afraid I moved it to a box and placed it on my stored books pallet.]

New York is a good model as well for recent examples:

Over the past four years, the minimum wage for New York City restaurants that employ more than 10 workers went from $10.50 an hour to $15. That’s a whopping 43% increase. Next year, every restaurant, big and small, will have to pay their workers at least $15 an hour.

A big victory for workers, right? That’s how it’s depicted by the “Fight for $15” crowd. And, yes, if you held a full-time minimum-wage job over those years, your gross income would have gone up by $9,360.

But those massive wage hikes come at a painful cost that backers refuse to acknowledge. They kill jobs. Just like they’re doing right now in New York City.

In just the last three months of last year, 4,000 workers lost jobs at full-service restaurants, Bureau of Labor Statistics data show

(IBD)

And in an article referenced in the above excerpt, we find this (via AEI):

An article in the New York Eater (“Restaurateurs Are Scrambling to Cut Service and Raise Prices After Minimum Wage Hike“) highlights some of the suffering New York City’s full-service restaurants are experiencing following the December 31, 2018 hike in the city’s minimum wage to $15 an hour, which is 15.4% higher than the $13 minimum wage a year earlier, and 36.4% higher than the $11 an hour two years ago. For example, Rosa Mexicana operates four restaurants in Manhattan and estimates the $15 mandated wage will increase their labor costs by $600,000 this year. Here’s a slice:

Now, across the city, restaurant owners and operators are reworking their budgets and operations to come up with those extra funds. Some restaurants, like Rosa Mexicano, are changing scheduling. Other restaurateurs are cutting hours and staffers, raising menu prices, and otherwise nixing costs wherever they can.

And though the new regulations are intended to benefit employees, some restaurateurs and staffers say that take home pay ends up being less due to fewer hours — or that employees face more work because there are fewer staffers per shift. The bottom line is, we have to reduce the number of hours we spend,” says Chris Westcott, Rosa Mexicano’s president and CEO. “And unfortunately that means that, in many cases, employees are earning less even though they’re making more.”

In a survey conducted by New York City Hospitality Alliance late last year, about 75% of the more than 300 respondents operating full-service restaurants reported they’ll reduce employee hours this year because of the new wage increases, while 47% said they’ll eliminate jobs in 2019.

Note also that the survey also reported that “76.50% of respondents report reducing employee hours and 36.30% eliminated jobs in 2018 in response to mandated wage increases.”

So, to quote a “conservative” economist, Thomas Sowell, these raising wages — artificially, separate from the market — have consequences:

A majority of professional economists surveyed in Britain, Germany, Canada, Switzerland, and the United States agreed that minimum wage laws increase unemployment among low-skilled workers. Economists in France and Austria did not. However, the majority among Canadian economists was 85 percent and among American economists was 90 percent. Dozens of studies of the effects of minimum wages in the United States and dozens more studies of the effects of minimum wages in various countries in Europe, Latin America, the Caribbean, Indonesia, Canada, Australia, and New Zealand were reviewed in 2006 by two economists at the National Bureau of Economic Research. They concluded that, despite the various approaches and methods used in these studies, this literature as a whole was one “largely solidifying the conventional view that minimum wages reduce employment among low-skilled workers.”

[….]

Another group disproportionately affected by minimum wage laws are members of unpopular racial or ethnic minority groups. Indeed, minimum wage laws were once advocated explicitly because of the likelihood that such laws would reduce or eliminate the competition of particular minorities, whether they were Japanese in Canada during the 1920s or blacks in the United States and South Africa during the same era. Such expressions of overt racial discrimination were both legal and socially accepted in all three countries at that time.

Again, it is necessary to note how price is a factor even in racial discrimination. That is, surplus labor resulting from minimum wage laws makes it cheaper to discriminate against minority workers than it would be in a free market, where there is no chronic excess supply of labor. Passing up qualified minority workers in a free market means having to hire more other workers to take the jobs they were denied, and that in turn usually means either having to raise the pay to attract the additional workers or lowering the job qualifications at the existing pay level— both of which amount to the same thing economically, higher labor costs for getting a given amount of work done.

The history of black workers in the United States illustrates the point. As already noted, from the late nineteenth-century on through the middle of the twentieth century, the labor force participation rate of American blacks was slightly higher than that of American whites. In other words, blacks were just as employable at the wages they received as whites were at their very different wages. The minimum wage law changed that. Before federal minimum wage laws were instituted in the 1930s, the black unemployment rate was slightly lower than the white unemployment rate in 1930. But then followed the Davis-Bacon Act of 1931, the National Industrial Recovery Act of 1933 and the Fair Labor Standards Act of 1938— all of which imposed government-mandated minimum wages, either on a particular sector or more broadly.

The National Labor Relations Act of 1935, which promoted unionization, also tended to price black workers out of jobs, in addition to union rules that kept blacks from jobs by barring them from union membership. The National Industrial Recovery Act raised wage rates in the Southern textile industry by 70 percent in just five months and its impact nationwide was estimated to have cost blacks half a million jobs. While this Act was later declared unconstitutional by the Supreme Court, the Fair Labor Standards Act of 1938 was upheld by the High Court and became the major force establishing a national minimum wage. As already noted, the inflation of the 1940s largely nullified the effect of the Fair Labor Standards Act, until it was amended in 1950 to raise minimum wages to a level that would have some actual effect on current wages. By 1954, black unemployment rates were double those of whites and have continued to be at that level or higher. Those particularly hard hit by the resulting unemployment have been black teenage males.

Even though 1949— the year before a series of minimum wage escalations began— was a recession year, black teenage male unemployment that year was lower than it was to be at any time during the later boom years of the 1960s. The wide gap between the unemployment rates of black and white teenagers dates from the escalation of the minimum wage and the spread of its coverage in the 1950s. The usual explanations of high unemployment among black teenagers— inexperience, less education, lack of skills, racism— cannot explain their rising unemployment, since all these things were worse during the earlier period when black teenage unemployment was much lower. Taking the more normal year of 1948 as a basis for comparison, black male teenage unemployment then was less than half of what it would be at any time during the decade of the 1960s and less than one-third of what it would be in the 1970s.

Unemployment among 16 and 17-year-old black males was no higher than among white males of the same age in 1948. It was only after a series of minimum wage escalations began that black male teenage unemployment not only skyrocketed but became more than double the unemployment rates among white male teenagers. In the early twenty-first century, the unemployment rate for black teenagers exceeded 30 percent. After the American economy turned down in the wake of the housing and financial crises, unemployment among black teenagers reached 40 percent.

  • Thomas Sowell, Basic Economics: A Common Sense Guide to the Economy, 4th Edition (New York, NY: Basic Books, 2011), 241; 249-251

And here is more info regarding job loss as the main reason most economists are against the minimum wage… that is because employment IS THEE most important thing to poorer people (while I quote more conservative sources… they themselves are quoting more middle of the road studies):

  • Nearly 90 percent of surveyed economists believed an acceptable federal minimum wage should be less than $15 an hour. When asked what level of wage floor they would support, roughly 40 percent endorsed the current federal hourly minimum wage of $7.25 or less. And 66 percent said the minimum wage should be no higher than $10 an hour (FOX). The survey’s key findings include (PDF of survey can be found at EMPLOYMENT POLICIES INSTITUTE):
    • 74 percent oppose raising the federal minimum wage to $15 an hour;
    • 84 percent believe a $15 minimum wage will have negative effects on youth employment;
    • Two-thirds of economists (66 percent) believe that an appropriate federal minimum wage is $10 an hour or less;
    • Just six percent believe a $15 minimum wage is a very efficient means to target individuals in poverty, while 64 percent said the same thing about the Earned Income Tax Credit (EITC).
  • The nonpartisan Congressional Budget Office said Monday that raising the federal minimum wage to $15 an hour, up from the current rate of $7.25 a hour, would likely cause 1.3 million people to lose their jobs. (WASHINGTON EXAMINER)
  • Economists aren’t certain about many things, but on the minimum wage, nearly all of them (90 percent, according to one survey) believe that the case is open and shut. All else being equal, if you raise the price of something (for instance, labor), then the demand for it (for instance, by employers) will decline. That’s not just a theory; it’s a law. (James Glassman, “Don’t Raise the Minimum Wage,” Washington Post [Feb 24, 1998]
  • …percentage of economists who agree…. A minimum wage increases unemployment among young and unskilled workers. (79%) (Robert M. Beren, Professor of Economics at Harvard University ~ [More: WINTERY KNIGHT])

These specialists are not promoting “a narrative,” but displaying historical consequences as common sense economic laws.


Another Real World Example


See another post where the “Billingsley” example is used: TAX THE RICH (Plus: CEO Pay vs. Worker Pay)

My statement still stands in response to keeping people off the government doll:

Family Paid Leave (John Stossel)

(MOONBATTERY hat-tip) Dems and some Republicans agree that Big Government must mandate paid family leave. Once again, coercion is proposed to solve a supposed problem that voluntary action has already addressed sufficiently. The ham-fisted government solution predictably makes matters worse. John Stossel explains:

The War on Poverty Starts With Marriage

UPDATED

(Originally posted in September of 2010)

The HERITAGE FOUNDATION has a great article about marriage. There points are zeroes in on marriage and its positive effects on children. They also point out that since the “War on Poverty” was implemented by President Lyndon Johnson, this single motherhood % and poverty can be seen to be the most affected. In other words, when a mother has a child out of wedlock because the man knows he doesn’t have to pay the bills, society will make up for his selfishness, that child is most affected. So, if you truly care for the child (as progressives almost always say they are), stop the “War on Poverty” as we know it, and start the “War on Broken Families.”

The WASHINGTON EXAMINER notes this economic factor:

  • ….“Over a third of single-parent families with children are poor, compared to only 7 percent of married families. Overall, children in married families are 82 percent less likely to be poor than are children of single parents.”

Robert Rector’s study, “Marriage: America’s Greatest Weapon Against Child Poverty,” detailed the problem in each state and he concluded that the Feds need to focus on marriage more.

“Policymakers on the state and national levels recognize that education reduces poverty, but they’re largely unaware that marriage is an equally strong anti-poverty weapon,” said Rector, a nationally recognized authority on the U.S. welfare system.

Heritage said that “while more Americans grow dependent on welfare, government fails to communicate the benefits of marriage even as it warns young people not to smoke, do drugs, have “unsafe” sex, or drop out of school.” Rector calls this “tragic.”

Is this “new dynamic” good for the continued health of the American way, or will it push us further towards a European way of viewing society? Two Books I highly recommend will be after the video:

Via NewsBusters:

Although Kay wasn’t necessarily advocating for single parents, the statistics concerning that are scary (via SingleParentSuccess.org):

  • In 1995, nearly six of 10 children living with mothers only were near the poverty line. About 45 percent of children raised by divorced mothers and 69 percent by never-married mothers lived in or near poverty, which was $13,003 for a family of three in 1998.
  • 75% of children/adolescents in chemical dependency hospitals are from single-parent families.
  • More than one half of all youths incarcerated for criminal acts lived in one-parent families when they were children.
  • 63% of suicides are individuals from single parent families.
  • 75% of teenage pregnancies are adolescents from single parent homes.

There’s no question that children growing up with both of their parents fare far better in life than any other domestic arrangement.

With such statistics readily available, it’s sad to see a member of the media call it old fashioned to marry before having kids.

Compare and Contrast

(Originally posted in August of 2013… new video files)

Now Compare


The Below Is From February 2012


(Language Warning)

This from Sweetness & Light:

….this update from CBS News:

House bans welfare recipients’ money from strip clubs, liquor stores

[…]

The House of Representatives overwhelmingly passed a bill that prohibits welfare recipients from using their government subsidy in strip clubs, liquor stores and casinos.

The measure easily received the necessary support of two-thirds of House members, with 395 voting in favor and only 27 opposing.

So this was a very bi-partisan vote. Funny how CBS doesn’t use the word. But we thought bi-partisanship was wonderful.

House Republicans introduced and promoted the proposal as a way to eliminate government wasteful spending. It has passed the House before, and they re-introduced it again hoping it will become part of a bill to extend the payroll tax credit, which both the House and Senate is expected to debate this month.

The Senate has not agreed to take up the measure….

…read more…

This is an old debate that is wrapped up well by state Senator Bob Dutton (31st Dis., California), in his post…

Democrats Kill Bill to Limit Welfare Recipients From Purchasing Alcohol/Tobacco with EBT Cards (4-2011):

An effort by Senate Republican Leader Bob Dutton (R-Rancho Cucamonga) to move California closer to making sure that those who receive welfare use those taxpayer funds as effectively and efficiently as possible was killed by Democrats during a hearing of the Senate Human Services Committee this week.

Senate Bill 417 would have prohibited those who receive welfare from using their Electronic Benefits Card (EBT) for the purchase of alcohol or tobacco products. Currently, those with EBT cards receive both their food stamps and welfare money, called CalWORKS benefits, on the ETB card. While current law does not allow recipients to use their food stamp portion of their benefits to purchase alcohol or tobacco, they can buy those items with the CalWORKS funds.

“You would think a simple common sense reform like trying to make sure taxpayer money is not used for the purchase of alcohol and tobacco would find bi-partisan support,” Senator Dutton said.

Abuses of the EBT card has received national attention over the last year, after the Los Angeles Times reported how millions of dollars of taxpayer money was being withdrawn with EBT cards from Indian Gaming Casinos, strip clubs, cruise ships, and Las Vegas. While the Governor issued an Executive Order to stop the use of EBT cards at these locations, it did not address stopping the purchase of alcohol or tobacco.

“These funds are designed to help the neediest in California meet their basic requirements of providing food, clothing and shelter,” Senator Dutton said. “I doubt there’s not a taxpayer in this state who believes purchasing alcohol or tobacco with welfare money constitutes a basic need and should be allowed.”

…read more…

I also wrote on this topic after the L.A. Times broke the story, which states:

The Capitol Casino, which occupies a pair of small rooms a few blocks from the legislative chambers in Sacramento, appears on the social services website showing where clients can get money. Each room has an ATM: one is so close to a poker table that a player with long arms could lean back and withdraw cash without leaving his chair; the other is a few steps from the blackjack table.

At the Casino Royale on the outskirts of Sacramento, the first thing patrons pass as they walk to the gaming floor is the ATM with a sign next to it saying, “Exceed your ATM daily limit here!!”….

…read more…

What is the liberal response? Here it is:

 

Poverty, Welfare, and Crime (U.S.-U.K.-Scandinavia)

This is merely two short audio clips from two separate economists and their recent studies for their books. The first audio is Michael Medved asking Edward Conard a question in regards to his book, The Upside of Inequality: How Good Intentions Undermine the Middle Class. (As an aside, Larry Elder used this audio in his Tuesday Sept 20th, 2016 show as part of his opening segment)

This next clip is from Thomas Sowell being interviewed by Larry Elder for the recent release of Dr. Sowell’s book, Wealth, Poverty and Politics: An International Perspective.

Part of my reasoning for uploading these was a caller called into the show and challenged The Sage that the reason for black woes was white supremacism. I included in the Michael Medved YouTube desscription the additional information:

I listened to this Michael Medved hour before I switched over to my Larry Elder podcast.

I am glad I did because of a caller the “Sage” had on brought up that racism was the main cause for black problems in America and challenged Larry Elder on the statistic of children born out of wedlock. The caller brought up Iceland as a comparison noting similar births to single mothers, and less of the maladies that afflict the black community here in the states. The caller then said this was proof of white racism in America (and the lasting effects of slavery and Jim Crow [in other words, the lasting effects of Democrats]).

However, this is an apples vs. oranges comparison. Why? Because most of the children born to a single mother in Iceland still have an intact family or a very involved father, via ICELAND REVIEW:

….But I’d like to point out that no one mentioned single fathers. Does that mean that when a couple separates the father is out of the picture? The child is the mother’s and the dad can move on to greener pastures and, hey, to live up to the age-old myth of manhood, spread his seed?

No, far from it. In most cases, the father is involved, and as involved as the mother. Many ex-couples try to live in the same neighborhood so that the kid can spend a week in each home, without interrupting school and activities.

Parenting in Iceland is generally an equal partnership and, more often than not, a father will do his best to take the paternal leave available to him, if the finances at home allow for it….

(“SINGLE-PARENT HOUSEHOLD,” ICELAND REVIEW)

Welfare Dependency ~ Larry Elder’s Short Colloquy

Larry Elder is again filling in for Dennis Prager and had a short colloquy about welfare and how a society should best respond — compassionately. So far we have done the opposite.

Larry Elder quotes a stat from Marvin Olasky’s book, “The Tragedy of American Compassion.”

Listen To Larry On-Line at CRN-Talk Radio.

For more clear thinking like this from Larry Elder… I invite you to visit: http://www.larryelder.com/ ~AND~ http://www.elderstatement.com/

Here is a longer version:

Jason Riley on Good Intentions ~ “Stop Helping Us” (Stossel)

Jason Riley, author of “Please Stop Helping Us,” joins John to explain how well-intended government program have damaged blacks in America.

“If we are to be mothered, mother must know best…. In every age the men who want us under their thumb, if they have any sense, will put forward the particular pretension which the hopes and fears of that age render most potent. They ‘cash in.’ It has been magic, it has been Christianity. Now it will certainly be science…. Let us not be deceived by phrases about ‘Man taking charge of his own destiny.’ All that can really happen is that some men will take charge of the destiny of others…. The more completely we are planned the more powerful they will be.”

[….]

 “Of all tyrannies, a tyranny exercised for the good of its victims may be the most oppressive. It may be better to live under robber barons than under omnipotent moral busybodies. The robber baron’s cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience. They may be more likely to go to Heaven yet at the same time likelier to make a Hell of earth. Their very kindness stings with intolerable insult. To be ‘cured’ against one’s will and cured of states which we may not regard as disease is to be put on a level of those who have not yet reached the age of reason or those who never will; to be classed with infants, imbeciles, and domestic animals. But to be punished, however severley, because we have deserved it, because ‘ought to have known better,’ is to be treated as a human persons in God’s image.”  

C.S. Lewis, God in the Dock (Grand Rapids, MI: W.B. Eerdmans, 2002), 292 (Full text).

 

The Constitution Does Not Allow For Social Programs

Here is Walter William’s article Larry Elder mentions:

Now that we’re about to decide the White House’s next occupant, let’s speculate about how previous presidents might fare were they standing for election in today’s America. What would be the presidential prospects of Thomas Jefferson or James Madison, our third and fourth presidents? Here’s my bet: They’d go down in an unprecedented landslide defeat. I could see the likes of a Joseph Stalin or a Mao Zedong winning long before a Jefferson or Madison. Let’s look at it.

In 1792, Congress appropriated $15,000 to assist some French refugees. James Madison wrote disapprovingly, “I cannot undertake to lay my finger on that article of the Constitution which granted a right to Congress of expending, on objects of benevolence, the money of their constituents.” Even though our Constitution hasn’t been amended to authorize Congress to spend on the objects of benevolence, I can’t imagine today’s Americans electing a president who’d share Madison’s view. Such a candidate would be labeled mean-spirited, racist, sexist and homophobic.

Today’s politicians might argue that James Madison, the acknowledged father of our Constitution, is all wrong. They’d say spending on the objects of benevolence (legalized theft) is authorized by the Constitution’s “promote the general welfare” clause. James Madison spoke to that argument saying, “With respect to the words general welfare, I have always regarded them as qualified by the detail of powers [enumerated in the Constitution] connected with them. To take them in a literal and unlimited sense would be a metamorphosis of the Constitution into a character which there is a host of proofs was not contemplated by its creators.”

Today’s Americans wouldn’t elect Thomas Jefferson either. He’d be labeled an extremist and a gun nut. Jefferson warned, “The issue today is the same as it has been throughout all history, whether man shall be allowed to govern himself or be ruled by a small elite.” Today, he’d be referring to the White House, Congress, the U.S. Supreme Court and federal regulatory agencies. Because of elite proclivities, Thomas Jefferson urged, “No man shall ever be debarred the use of arms. The strongest reason for the people to retain the right to keep and bear arms is, as a last resort, to protect themselves against tyranny in government.” Jefferson wasn’t referring to just any old government; he was referring to the U.S. federal government.

Franklin Pierce, our 14th president, took actions that would be political suicide today. In 1854, he vetoed a bill to help the mentally ill saying, “I cannot find any authority in the Constitution for public charity,” adding that to approve such spending, “would be contrary to the letter and the spirit of the Constitution and subversive to the whole theory upon which the Union of these States is founded.”

In 1887, President Grover Cleveland, our 22nd and 24th president, said when vetoing an appropriation to help drought-stricken counties in Texas, “I feel obliged to withhold my approval of the plan to indulge in benevolent and charitable sentiment through the appropriation of public funds . . . I find no warrant for such an appropriation in the Constitution.”

Today’s politicians can’t be held fully responsible for our growing constitutional contempt. We might blame them for not being statesmen. The lion’s share of the blame rests with 270 million Americans. Our elected officials simply mirror our contempt for constitutional principles and our desire to live at the expense of our fellow American. It’s unreasonable to expect a congressman, or a president to live up to his oath of office, to protect, defend and bear true allegiance to the Constitution, if doing that means political suicide.

 

Alexander Solzhenitsyn’s Forgotten Warning to America (Updated)

“I would like to call upon America to be more careful with its trust and prevent those wise persons who are attempting to establish even finer degrees of justice and even finer legal shades of equality – some because of their distorted outlook, others because of short-sightedness and still others out of self-interest – from falsely using the struggle for peace and for social justice to lead you down a false road. Because they are trying to weaken you; they are trying to disarm your strong and magnificent country in the face of this fearful threat – one which has never been seen before in the history of the world.” ~ Alexander Solzhenitsyn

found in Larry Elder’s book, Showdown: Confronting Bias, Lies and the Special Interests That Divide America (New York, NY: St. Martin’s Griffin, 2003), 64.

(Book 1)

BigGovernment has this article (GONE! Now found at found at Virtue Online) to which I will only post a small portion of here. It is nice to see this level of deep thought over there!

The fact that moral relativism, multiculturalism, and political correctness are failures hasn’t prevented us from adopting these self-destructive concepts as the basis upon which we interact with others, at home and abroad. The failure to prevent the jihad treason murders at Fort Hood is perhaps the most obscene and obvious culmination of the damage that moral relativism has done to us all.

The Stanford Encyclopedia of Philosophy defines moral relativism as something that one accuses another of, rather than something to which one proudly admits. Reasonable people know that some cultures, ideologies, and political systems are better than others, but most now lack the courage and clarity to declare it.

Most often it is associated with an empirical thesis that there are deep and widespread moral disagreements and a metaethical thesis that the truth or justification of moral judgments is not absolute, but relative to some group of persons. Sometimes ‘Moral Relativism’ is connected with a normative position about how we ought to think about or act towards those with whom we morally disagree, most commonly that we should tolerate them.

(Stanford Encyclopedia of Philosophy)

Solzhenitsyn’s 1978 “A World Split Apart” speech at Harvard was both an appreciation of and a warning to the West that rejection of definitive truths will lead to our decline and eventual fall. He identified the abandonment of the concept of evil and the rise of “humanism” that today is moral relativism and post-modernism as the cracked egg from which failed cultures are born.

Such a tilt of freedom in the direction of evil has come about gradually but it was evidently born primarily out of a humanistic and benevolent concept according to which there is no evil inherent to human nature; the world belongs to mankind and all the defects of life are caused by wrong social systems which must be corrected.

(Solzhenitsyn, “A World Split Apart,” 1978)

Without a firm concept of identity and a clear understanding of and belief in concepts of right and wrong, good and evil and the ability to resolve similar dichotomies our society will fall to more absolutist ideas. We will fall because we lack the moral willpower to resist.

And yet — no weapons, no matter how powerful, can help the West until it overcomes its loss of willpower. In a state of psychological weakness, weapons become a burden for the capitulating side. To defend oneself, one must also be ready to die; there is little such readiness in a society raised in the cult of material well-being. Nothing is left, then, but concessions, attempts to gain time and betrayal…

[…..]

It has to be the fulfillment of a permanent, earnest duty so that one’s life journey may become an experience of moral growth; so that one may leave life a better human being than one started it. It is imperative to review the table of widespread human values. Its present incorrectness is astounding.

A society which is based on the letter of the law and never reaches any higher is taking very scarce advantage of the high level of human possibilities. The letter of the law is too cold and formal to have a beneficial influence on society. Whenever the tissue of life is woven of legalistic relations, there is an atmosphere of moral mediocrity, paralyzing man’s noblest impulses.

And it will be simply impossible to stand through the trials of this threatening century with only the support of a legalistic structure.

(Solzhenitsyn, “A World Split Apart,” 1978)

“I freed Germany from the stupid and degrading fallacies of conscience and morality…. We will train young people before whom the world will tremble. I want young people capable of violence — imperious, relentless and cruel.”

Hitler, from a plaque hung on the wall at Auschwitz; in Ravi Zacharias, Can Man Live Without God (Nashville, TN: W Publising Group, 1994), 23.