Welfare? because it pays….


 

Because it pays … By Mustang

 

Considering the total amount of welfare spending, welfare fraud is but a small percentage. This, at least, is the argument posed by the defenders of state welfare. On the other hand, interviews with welfare recipients where the questioner has gained a high level of trust with his subject illustrates that most welfare recipients fail to report their total income and that just over 80% of these recipients are willing to cheat because there is only a 16% chance that their dishonesty will be discovered. It’s a game —and one that pays good dividends.

Welfare fraud, while widespread, is mostly committed by people who struggle financially. In a study conducted in 2012, 88% of welfare recipients admitted that they regularly cheat, either to maintain their benefit, or toward increasing it. The 2012 study was remarkably consistent with one conducted in 1988, where 80% of Chicago blacks worked either full or part time but failed to report their income to the welfare office. In 1974, a study of 450 welfare recipients in Orange County, California discovered a 45% fraud rate; in less than ten years, this number increased by 729%.

In 2016, investigators in the Social Security Administration received 143,385 allegations of fraud. They opened 8,048 cases; 1,162 people were eventually convicted of fraud. This was a small percentage of individuals ever going into court, but the government claims to have recovered $52.6 million while imposing $4.5 million in fines.

Note: I’m not sure how the government “recovers” stolen benefits. What I do know is that fraud perpetrated against the Social Security Administration Trust Fund threatens the integrity of the fund and blocks access to needy applicants with legitimate claims for benefits

By 2017, resulting from advances in medicine, safety devises, and an overall decrease in positions demanding manual labor, the numbers of people unable to work actually decreased since 1960 … but the percentage of people qualifying for federal benefits because they are unable to work actually increased. The only explanation, given that the legal definition of physical disability hasn’t changed since1960, is an increase in fraud.

In addition to the Social Security Administration, fraud also exists within the Department of Housing and Urban Development, Department of Labor, and the Department of Veteran’s Affairs. In the first half of FY- 2012, the IG of the SSA detected frauds amounting to more than $253 million. If we extrapolate this through the entire fiscal year, over $500 million dollars of public assistance money was stolen by recipients of welfare or assistance.

Some examples:

  • In 1977, Linda Taylor from Chicago used 14 aliases to obtain $150,000 in medical assistance. Within 18 months, hundreds of others in Chicago developed equally outrageous schemes to steal millions from the welfare state.
  • In 1978, Dorothy Woods claimed 38 non-existent children.
  • In 1979, Esther Johnson in California was sentenced for collecting $240,000 for more than60 fictitious children. When she was released from prison four years later, she had acollege degree in social welfare administration, paid for by the American taxpayer.
  • In 1979, Arlene Otis of Cook County Illinois was indicted on 613 charges of illegally receiving $150,839.Welfare fraud aren’t the only costs. The cost of policing and prosecuting welfare fraud is high (although largely unmeasured). These costs involve labor costs of investigators, prosecutors, public defenders, judges, probation officers, and the administration costs of welfare diversion programs.

There are also prison costs, and the cost of foster care when single mothers are incarcerated. In 2008, California spent three times as much in policing welfare fraud as its cost of welfare fraud overpayments. Now of course, state comptrollers have concluded not to prosecute fraud —it is cheaper to just turn a blind eye.Why do they do it? Because it pays.

Welfare fraud more often than not reflects the idea that
citizens have a moral right to proper financial support from county, state, and federal governments. They think this because politicians continually reinforce this kind of thinking. The fact is, more than one-half of adultAmericans receive more money in government payments than they pay in federal taxes —this according to the Congressional Budget Office. The lower one’s income, the more benefits they receive, and the wider the disparity between benefits received and taxes paid.

CBO tells us that the lowest income earners pay only $400.00 in taxes yet receive $16,000.00 in benefits. They receive more income after taxes than they do before taxes. So, the question is, who is paying for this disparity?

American taxpayers, of course.

This is not a problem if one happens to be a Democrat. “From each according to his ability, to each according to his need” is a popular refrain among Marxists. Still, the sentiment does provide an effective strategy for recruiting political support. Ludwig von Mises instructed us that once we reach the point where a majority of voters receive more in benefits than it pays in taxes, they will demand even more from the government and be politically positioned to demand it. The more this political majority demands fromgovernment, the greater the government’s assault on a diminishing number of middle and higher-income people taxed to support welfare programs.

According to the Cato Institute, the federal government in 2014 spent $688 billion on 126 separate welfare programs. Spending by state and local governments pushed this figure well over $1 trillion. Leftists like to quibble over these figures, though. They’ll argue that $55 billion is refundable as part of the Earned Income Tax Credit, $21 billion to Temporary Assistance for Needy Families (which, given the history of welfare payments in the United States, isn’t temporary at all). $44 billion is the figure attached to Supplemental Security Income; $75 billion for food stamps, $18 billion for housing vouchers. Medicaid spends $228 billion on the non-elderly population, with children’s health claiming $13.5 billion. Added to this are Title 1 grants of $14 billion and Head Start programs of $10 billion.

If the Cato figures tell us anything at all, it is that the United States and its so-called Great Society lost the war on poverty … a presumption on my part based on the fact that such programs haven’t accomplished raising the poor up into the middle class. All it ever did was increase the rolls of voting Democrats. Given the fact that registered voters have an iron in the welfare fire, it makes one wonder if these people shouldn’t recuse themselves from voting. After all, it isn’t as if they’re giving much thought about who to vote for.

There is no civic virtue on the American left.

I do believe that each of us has a duty to help our neighbors in need. Giving to the poor is laudable act when private citizens make those kinds of decisions. This isn’t what happens in Marxist run countries, however: private citizens don’t decide —the government makes that decision for them. The government decides how much the wage earner will “donate.” Government decides how we define poor, and who qualifies for taxpayer-funded assistance. Government even decides how this money will be extorted and the penalty for withholding it.

This is the Democratic (communist) political platform. We now live in a society where the political majority consist of those who benefit most from government largesse. Who are they —these leftist voters? They are people who do not, and will not work for a living. They are people who feign illness or injury so that the government will pay them to stay home and watch television.

They are the millions of illegal aliens here now (and those who are in the way — the communist left’s future voters). They are the literally millions of people who refused to stay in school, people who’ve made a mess of their lives, who produce more children than they can afford, and now expect the American taxpayer to bail them out. These numbers, by the way, far exceed the numbers of our truly-needy elderly and disabled citizens —and they too are loyal Democrats, because this is the party that consistently frightens into thinking that the other party may cause them to lose their benefits.

If these genuine recipients ever do lose their benefits, it will be because the communists have squandered precious monetary resources recruiting young voters into the Democratic machine.

Advertisements

19 Responses to “Welfare? because it pays….”

  1. kookooracharabioso Says:

    PS. Not just individuals frauding, also corporations. The vast increase in “mentally ill” includes survivors of malpractice which can’t be fixed because it is denied.

    Liked by 1 person

  2. kookooracharabioso Says:

    Today I had to cancel a Dr appointment to the Dr who saved my husband from having his legs amputated. Reason? We have no means to get to that appointment & we don’t “qualify” for any help. A decade ago we were being gouged just shy of $600 per month for insulin alone. We often could not afford it. If insulin had been affordable then my husband would most likely still be working now. So I love all the comments here but I feel that the most of us are merely a cheap renewable to be tossed if a lesser earner or no longer able to work & I don’t like it. Still looking for answers. The chronic poor & the schemers are not the ones being genocided here – it’s those of us who had a work ethic & we worked our tail ends off.

    Liked by 2 people

    • Mustang Says:

      I have, for more years than I can remember, have railed against the fact that in the United States, citizens pay three times the amount for prescription medications than do people in Mexico, in most of Europe, and in countries on the African continent. The fact is, this has been an intentional manipulation of the American people —who everyone at the World Health Organization claims is rich. Well, I suppose it is true that our poor are better off than the poor in other nations —but I simply do not believe that it should be the mission of the US government to level the playing field between our own citizens and those living in other countries. Donald Trump recently said that he intends to do something about this disparity and I hope he does. Americans deserve better than they’re getting in the medications department.

      I know that when people are suffering, they’re not interested in hearing posh explanations for things that just don’t seem right. I understand that. We have people today clamoring about dwindling resources; they want windmills for energy, to fire everyone working the coal industry, and to force everyone to buy an electric car. None of these programs are cost effective or make much sense. There’s another dwindling resource: it is money. My point in this article was not to deride or insult anyone who needs help. I think I said as much. Rather, I contend that we should reach out to those who are suffering. The problem remains, however. If the government is spending $1 Trillion on 126 separate welfare/assistance programs (a number I almost can’t get my head around), and if $500-million is being syphoned off through fraud, bureaucratic incompetence, or completely wrong-headed programs (feeding illegal aliens, comes to mind), then clearly, we will not have the monetary resources to help people who truly are needy.

      Someone who works hard all their lives ought to end up in retirement in the same corner as a grateful government. Obama Care has thrown hardworking people and retirees (on a fixed income) under the bus. The American medical system isn’t perfect but was the best in the world until Democrats had to pass a bill before they read it. I can say this with certainty: as a nation, we do not want to find ourselves in the same boat as the British. Their “NHS” is driving the UK into a third-world economic status —and this is happening all the while British citizens get the worst care imaginable. Not long ago, a three-year old child died from heart issues because the hospital didn’t have available beds. What was the NHS reaction to this? They intimated ‘whats one child in a population of 64 million people?’ My jaw dropped!

      All I am saying is that we must divest ourselves from welfare fraud so that we CAN help truly needy fellow citizens. If the US and state governments would do that, they would be telling us that they really do care about us. We deserve no less.

      Thank you for your heartfelt comment. I wish you all the best.

      Liked by 1 person

    • kookooracharabioso Says:

      That $600 for insulin was AFTER insurance paid their part.

      Liked by 1 person

      • Ed Bonderenka Says:

        It appears that our insurance programs are exactly what is raising the prices.

        Like

      • bunkerville Says:

        Ed…the requirement for services I don’t need nor to I want to include in my plan has raised the rates thanks to Obamacare. Now psychiatric and drug abuse coverage must be the same as coverage for any other condition. Perhaps its a good thing. Maternity care…. but all of this raises the utilization a huge amount.
        Now with the very expensive diagnostic equipment and staff to maintain it is what everyone wants. All of this cost big bucks. Last time I looked at the profit margins of Health Insurance companies, they were pretty far down on the S and P profitability list.

        Like

  3. bydesign001 Says:

    My sister died in 1991 whereupon I found myself with her three children. At the time, my husband who has multiple sclerosis had one month earlier gone out on permanent disability. Aware of my struggles, not even 24 hours after my sister was killed by a drunken driver, a cousin stopped by and said all of the right things…almost.
    Offering to lighten the load on me, she offered to take two of the three girls. Three minutes into the conversation, she blew it by saying, “if I’m going to take them, I’m going to have to go downtown to get some help.” “Downtown” meaning welfare.
    I never gave this woman the opportunity especially since she had just finished raising her sister’s three children who recently came of age with the assistance of the government dole. The major strike against her (in my eyes) is she didn’t have to. She had a damned good job.
    End game, the next six months was really rough but when it seemed its darkest, God came through. For the next decade and a half, I worked 15 to 17 hours a day but I did it on my own, no food stamps, no EBT, nothing but my paycheck.
    I despise people who fraud the government. It is the lazy and corrupt way out. It also never ends well.
    Would I do it again, you betcha!

    Liked by 4 people

    • bunkerville Says:

      Now that was some story…God bless you for the life you gave to those kids.

      Liked by 3 people

  4. the unit Says:

    Hope it’s all paid with Unreserved Love Notes. 🙂
    https://imgur.com/a/iI1Eben

    Like

  5. thetinfoilhatsociety Says:

    My neighbor is committing SS fraud, as is his wife. I suspect it will do absolutely no good to report them. He’s on disability due to a “back injury” yet he continues to operate a contracting company that is under his dead father’s name. His wife is on disability for “chronic anxiety/agoraphobia” but she is perfectly able to charge people to go shopping for them or drive them to medical appointments.

    When the welfare society was introduced churches and other charities simply quit offering assistance. This was the starting point of what we have now. Churches and charities would actually evaluate the need based on the household and its constituents, not just on the income and numbers of people. For instance, if dad worked but he blew his check on alcohol, maybe the family would get a lot less in help with their fuel bill from the church unless dad agreed to go to AA or something.

    Many families used to believe it was shameful to accept help – not now. Now, in my state, they don’t even *actually* require legal residency. They just look the other way, a simple lease agreement and utility bill is good enough apparently. Mexican women know if they are pregnant when they cross the border they automatically qualify for emergency assistance, then once that anchor baby is born they’re here on a free ticket for life.

    Welfare needs to be abolished and communities need to go back to screening and helping their own. It puts responsibility back on the individual and family to actually try to help themselves first.

    Liked by 4 people

    • Mustang Says:

      My concern isn’t that we have welfare programs, only that something intended to help the truly needy among us has been hijacked by dishonest people, aided and abetted by an incompetent government infrastructure. But I agree with you that reaching out to the needy used to be a community-based effort —now that the federal government has its nose under the tent, there is no reason for communities to be involved at all. IMO, This is the primary fallacy of the program.

      By the way, I saw exactly the same circumstances in my neighborhood years ago when living in Florida. Both husband and wife were milking the system. I didn’t report it either knowing that it was just as likely that someone would shotgun my house in the middle of the night.

      Liked by 3 people

      • bydesign001 Says:

        Milking the system is a nice way of putting it. It’s out and out theft. Years ago, we had a family that lived down the street. Imagine my surprise waiting at the bus stop to see mom and dad roll around the corner with an electric scooter “each,” headphones attached to smartphones (each), what looked like designer shades only to be followed by their children (two teen children, i.e., a boy and girl) on their own electric scooters, headphones attached to smartphones and again what looked like designer sunglasses.

        If I had the particulars on these people, I would have reported them myself. Their lack of shame disgusted me.

        Liked by 2 people

      • Mustang Says:

        The lessons we should have learned over 100 years ago is that all corporations have one goal: to make a profit. They spend more on R&D than they do on employee salaries, but without R&D, corporations won’t remain competitive. A non-competitive company is one that soon closes its doors, and the people who worked there are unemployed.

        I have to say that I hated learning how Maytag closed its factory in Iowa and moved to Mexico (or China … I can’t remember). In doing this, they put nearly the entire town out of work. Maytag won’t be back. The people who lost their jobs have had two choices: starve or start thinking out of the box. During the Great Depression, people who had never done anything but farming found themselves leaving Oklahoma and Texas and heading for California, where they had to learn to do a different kind of work. It was a tough time. Not everyone made it … most did. How did they do it? They learned not to take life for granted. They learned that corporations were untrustworthy, unions are ripping off their members, and the government hasn’t a clue about much of anything. I remember my step-grandfather, a Ford employee, warning me that if I didn’t look out for myself, the company sure as hell wouldn’t do it. He said if I wanted human dignity, stay away from factories —where everyone has the same work as a honeybee.

        Here’s my point of view. The government doesn’t have money. The government has other people’s money. The fact that government was out of money never stopped it from borrowing against future revenues. Our country is so far in debt now, our great-grandchildren will still be sorting it out. In any case, at my age, it’s too late for a do-over. I just hope the younger generations will have learned the important lessons that most of us never did: it’s up to us. Government, Corporations, or Unions won’t make us rich, or healthy, or happy. They never did, and they never will. Only we can do that for ourselves.

        Liked by 1 person

    • bunkerville Says:

      While I was living in Florida several years ago, I had need of going to the SS office. Literally hundreds were lined up for the opening hour. I have not any evidence as to what all were about, but I can say No habla English… from my basic spanish understanding, it was disability.This was just one day…. I gave up and came back at 7:00 am…only about 25 at that point. Lucky me.

      Liked by 3 people

    • kookooracharabioso Says:

      Remembering how even closely related religions had utter hatred for the other and other religions or races were considered sub-human . . . .no, I don’t want to go back there. I remember people that almost died in the 50’s. The shame is gone for natural & correct reasons starting with decades of stagnant wages & a million designs to deprive people of pride & dignity in their work or at work in the chase for equal units of production. The demand for government to do what business either cannot or will not do (healthcare, living wage) is also a natural response to watching loved ones die due to no insurance. In my state charter schools (on public monies) can afford to build fantastic new buildings while regular public schools crumble. Is this not proof that government had the money all along but wàs lining someone’s pocket instead of putting it where it was meant to go? Our corporations gouging us & then starting yet another charity in Africa when we have plenty deserving of that charity here? Just saying . . .lots of us don’t understand how things work but it looks immoral if not criminal. So trickledown immorality & the conspiracy to hasten the deaths of those who remember how it should be.

      Liked by 1 person

      • Mustang Says:

        The lessons we should have learned over 100 years ago is that all corporations have one goal: to make a profit. They spend more on R&D than they do on employee salaries, but without R&D, corporations won’t remain competitive. A non-competitive company is one that soon closes its doors, and the people who worked there are unemployed.

        I have to say that I hated learning how Maytag closed its factory in Iowa and moved to Mexico (or China … I can’t remember). In doing this, they put nearly the entire town out of work. Maytag won’t be back. The people who lost their jobs have had two choices: starve or start thinking out of the box. During the Great Depression, people who had never done anything but farming found themselves leaving Oklahoma and Texas and heading for California, where they had to learn to do a different kind of work. It was a tough time. Not everyone made it … most did. How did they do it? They learned not to take life for granted. They learned that corporations were untrustworthy, unions are ripping off their members, and the government hasn’t a clue about much of anything. I remember my step-grandfather, a Ford employee, warning me that if I didn’t look out for myself, the company sure as hell wouldn’t do it. He said if I wanted human dignity, stay away from factories —where everyone has the same work as a honeybee.

        Here’s my point of view. The government doesn’t have money. The government has other people’s money. The fact that government was out of money never stopped it from borrowing against future revenues. Our country is so far in debt now, our great-grandchildren will still be sorting it out. In any case, at my age, it’s too late for a do-over. I just hope the younger generations will have learned the important lessons that most of us never did: it’s up to us. Government, Corporations, or Unions won’t make us rich, or healthy, or happy. They never did, and they never will. Only we can do that for ourselves.

        Like

  6. SingleMom56 Says:

    While this is an insightful article, how about giving statistics that were post-computer fraud???? The ones quoted tired, old renmnants from 1977, 1978 & 1979 when computers and databases were in their infancy and paperwork was reported and filed by hand. Are there none 40 years later?????

    While there still may be fraud today (as their always will be) food stamps were meant to help the poor; not those holding a $500+ cell phone AND not those who are not American citizens. And while lack of birth control has always been a problem with multiple children “when you can’t afford them” it is up to Federal to mandate mandatory birth control and mandatory job education in order to be accepted for aid. It is not up to the population to pay for someone else’s child care. If we can propose drug testing . . . which is an expensive route to take, we certainly can mandate other restrictions.

    We have students who refuse to do their work in classroom, we have students who skip school and even write the alphabet, do times tables, or read. We have students who “pass” each grade because we can’t hurt their self-esteen by holding them back when they have not learned (or refused to learn) the skills they need to be promoted. We have students that drop out, graduating with no plans for their life, AND no skills for any kind of employment. We teach self-esteen, I’m ok your’e ok, cultural inappropriation, bullying, empathy–but not reading, writing and arithmetic.

    We have taken out the sewing, cooking, wood shop, secretarial, auto mechanics, computer classes curriculums as unnecessary, but we waste the time of multiple middle/high schoolers as a teacher’s aid in a class where no aid is needed when they should be taking a class that enhances their education. Why? Because the school had to cut back on the performing/visual arts and skills classes that can lead to job skills. We are forcing Caucasian kids to speak a foreign language when the only option available is Spanish, but Hispanic children (who speak Spanish at home and at school) are not forced to take another ‘foreign’ language. We teach multiple languages to students in our schools and print flyers in multiple languages, but these children and their families are never mandated to learn English. Why should they when we spoon-feed them their own language at every turn? There is no incentive for them to learn and assimilate.

    All of these things contribute to an unskilled, uneducated population of riding adults. Until change happens, we perpetuate the need for more food stamps.

    Liked by 3 people

    • Mustang Says:

      Thank you for your comment. My use of the earlier statistics had only two purposes: to point to the most egregious examples, and to show how long these crimes have been going on. My experience has been that if there are ways to circumvent law or process, dishonest people will find it and exploit it. Food stamps is another of these. Recently, the US Department of Agriculture (under Obama) distributed food stamp application forms IN MEXICO so that people who were not entitled to access this program could benefit from it, at the American taxpayer’s expense. The excuse rendered was that it was to our benefit to address undernourishment in the border states. Years ago, while living in South Texas, I observed first hand that recipients of food stamps would barter them under the counter for alcohol and cigarettes, which were then smuggled into Mexico and sold. It is not difficult to get “green backs” in Mexico.

      A few years back Florida passed a law requiring random drug testing for recipients of welfare. As you can imagine, that didn’t go over very well, but I do think the law stands today. The issue is that when the system is so overwhelmed, government bureaucracies bog down. There is never a sufficient number of social services workers to manage the system. I should like to point out the following: The Cloward-Piven strategy was outlined in 1966 by Richard Cloward and Frances Fox Piven. It called for overloading the US public welfare system as a means of precipitating crises that would lead to a replacement of the welfare system to a national system of “guaranteed annual income.” It was also Cloward-Piven who, by the way, suggested the infamous “motor voter” bill embraced by Clinton and which has resulted in the corruption of our electoral process.

      You’ve made some excellent observations in your commentary; I very much appreciate that and agree with you that we are in a deep spiral. I shudder to think what will happen if the DNC controls the next House of Representatives.

      Liked by 1 person

      • bunkerville Says:

        Wait until Florida gets its new Marxist Governor… glad I sold out last year and moved North.

        Liked by 1 person


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: