Losing the war on poverty

After trillions of spent dollars on our government’s supposed “War on Poverty”, what exactly does the United States have to show for it?  Millions still live in poverty (although the definition of “poverty” in the United States includes ownership of flat screen TVs, cable/satellite television service and high speed Internet) despite the enormous toll the war has had on the American people’s tax dollars.

Every year, the government spends more than a half-trillion dollars on programs designed to “end poverty”.  10s of trillions of dollars later, we find ourselves no better off than the year before.  Consider the following analysis by Michael Tanner of the Cato Institute, who wrote recently:

In 2012, the federal government spent $668 billion to fund 126 separate anti-poverty programs. State and local governments kicked in another $284 billion, bringing total anti-poverty spending to nearly $1 trillion. That amounts to $20,610 for every poor person in America, or $61,830 per poor family of three.

Spending on the major anti-poverty programs increased in 2013, pushing the total even higher.

Over, the last 50 years, the government spent more than $16 trillion to fight poverty.

Yet today, 15 percent of Americans still live in poverty. That’s scarcely better than the 19 percent living in poverty at the time of Johnson’s speech. Nearly 22 percent of children live in poverty today. In 1964, it was 23 percent.

How could we have spent so much and achieved so little?

The answer lies in government involvement.  Propping people up with government anti-poverty programs succeeds at keeping people in poverty with a consistent and dependable monthly check.  Consider this: what how motivation would you have to find a job if your unemployment benefits do not run out until 2015?

“Fewer than three percent of full-time workers are poor, compared to nearly 25 percent for those without a job. Even an entry level, minimum-wage job can be the first step on the road out of poverty,” Tanner wrote.

Will our government ever learn?  Better yet – will the American people make them learn?

Despite massive spending, underachievement prevails

r-SAN-FRANCISCO-MINIMUM-WAGE-HIKE-large570Did you know that the number of people on food stamps has grown over the past 13 years by nearly 30 million, which accounts for almost 20% of households receiving taxpayer-funded food subsidies?  At the same time, the federal government is spending more per household than ever before – in fact, a 152 percent increase since 1965.

Our middle class is shrinking – the rich are getting richer and the poor are getting poorer, due in large part to insanely complex government rules and regulations that only those with resources can bypass.  In fact, the top 7% of households own 63% of the nation’s wealth.  During the so-called economy recovery, the other 93% of families lost wealth, putting into question the effectiveness of big spending government stimulus packages and who, in reality, the recovery truly helped.

ABC News reports that nearly 50 million people in the United States live in poverty, but yet, most Americans view our nation as the most prosperous in the world, fundamentally superior to our foreign counterparts despite our poor education system, insanely expensive healthcare industry and THE biggest government that we’ve ever had.

In fact, our healthcare system spends twice as much per person than any other developed nation in the world, a cost that accounts for more than 16% of our nation’s Gross Domestic Product (GDP).  Our healthcare spending has increased at twice the rate of inflation, but yet our pharmaceuticals continue to kill and emergency rooms remain clogged with people using it as their primary care service.

A much-maligned segment of the population, the top 1% of income earners in the country have a greater net worth than the bottom 90% put together.  Perhaps this is due to nearly a quarter of all jobs in the United States that pay a wage of less than $10/hour.

Worse, spending in Washington continues to grow, more than it ever has despite record tax revenues.  Federal politicians managed to rack up $755 billion in deficits through the first eleven months of 2013′s fiscal year.  Spending during the same period amounted to a whopping $3.2 trillion.

Now, the government wants to take over healthcare.  Already the most expensive healthcare system in the entire world, the 10,500-page Obamacare monstrosity has authorized the government to spend even more money.  The new healthcare system’s broken Healthcare.gov web site cost the American taxpayer $634 million to build.  Obamacare has caused many insurance companies to cancel policies and create more expensive alternatives.  Premiums have risen and job hours have decreased to sub-30 hours to avoid Obamacare penalties.

The evidence of the big government effect is clear and overwhelming, and it is costing the American taxpayer trillions of dollars in reckless spending.  Both the Democrats and Republicans represent the cause of these problems, and our nation will never truly fix our ailing spending habits until we replace those responsible for it.