The Real Budget Battle No One Will Discuss

BudgetPresident Trump released his proposed 2018 Federal Budget. The battle lines are drawn. Expect to be inundated with articles like “The rich get richer, and the poor get…” We will quickly be fed up with class warfare, emotional bleeding hearts and hysterical politicos distorting statistics while pandering votes.

The final result will be a pathetic “compromise”. Remember, a camel is a horse designed by a committee of politicos. It’s bloated, stuffed so full of crap it cannot function in the manner it is intended.

The goal of congress

Politicos (career politicians) want a budget that will increase their power and reelection chances – not what is right for the majority of Americans.

They have turned spending taxpayers dollars to buy votes into an art form. Meaningful spending cuts are an unnatural act, regardless of political party. Cutting taxes may help election chances; however, only 50% of Americans pay federal income taxes.

Targeting a balanced budget is a farce. The working class should demand more, our bloated government is wasting billions of dollars every day.

Who gets the gold mine and who gets the shaft!

Federal Safety Net outlined government spending in the fiscal year 2015 & 2016:Federal Safety Net

If the income pie shrinks due to tax cuts, will there be real spending cuts or increased borrowing? Interest cost on the current $20 trillion debt is over $500 billion annually. Every 1% jump in interest rates adds $200 billion in interest cost to the budget.

The defense department, with friendly generals in the cabinet, wants a budget increase. I read that we have 800 military bases located in 70 countries around the globe. I’m sure they are necessary to support our never-ending wars. (Sarcasm intended)

Domestically, much of the debate will be framed around tax cuts for the rich, not caring about the poor. Politicos subscribe to the NIMBY (Not In My Back Yard) theory and will be screaming, cut expenses somewhere else.

Don’t expect the media to acknowledge that Presidents Kennedy and Reagan both cut taxes. While tax rates dropped, a couple years later, the economy rebounded and federal income tax revenue increased.

Expect to see a lot of data like this Econofact article, “Welfare and the Federal Budget”. Here is an excerpt:

“If policymakers have dual goals of reducing federal government spending and reducing cash support for non-working individuals to increase employment rates, a focus on welfare programs that provide income support to low-income families is misplaced. Those programs constitute a tiny share of federal spending and already have stringent work requirements.”

$732 billion (19%) in welfare and Medicaid spending in 2016 is tiny???

What is welfare supposed to do?

Is the goal of welfare to help the poor get on their feet, get a job and move up the economic ladder? Or, is it to provide a permanent underclass, keeping politicians who are “champions of the poor” in positions of power?

The Single Mother Guide article, “Temporary Cash Assistance For The Poor” discusses the Temporary Assistance For Needy Families (TANF) program.

“Single-mother families are worse off than any other types of households with slightly over 40% officially below the poverty level.

It comes as no surprise that many are homeless and unable to afford even the basic necessities like food & housing.

…TANF often becomes a …safety net for over 1.6 million families while they get back on their feet – with single mothers making up the bulk of welfare recipients.

The grand idea is to offer short-term assistance, with the aim of helping them get off of welfare – primarily through employment, which would lessen their need for assistance.” (Emphasis mine)

How’s the “Grand Idea” working out? Not very well according to a 2013 article, “Making it to the middle class”.

“It’s nice to think one can easily go from being dirt poor to filthy rich, but it doesn’t usually work that way.

Of people born into lower-income households, few will ever make it into the middle class, according to a study from Pew Charitable Trust. Only a tiny percentage rise into the highest income bracket.

Pew Charitable Trust

…Those that did move into at least the middle class had these traits in common:

  • College grads 53%
  • Two Income families 50%
  • White 35%
  • Did not experience unemployment 34%

The Pew data is from a study that has followed families since 1968. It uses 2009 numbers.

The top 1% is getting richer, the middle class is losing ground and the poor remain so. Why?

Three of the four bullet points are behavior, issues over which each individual has some control.

Federal Safety Net released a study in September 2017, “U.S. Poverty Statistics”. Three tables address the behavioral issues:

Marital Status

Marital Status

Working Age Adults

Working Age Adults

Educational Attainment

Educational Attainment

The conclusion…

“Young people can virtually assure that they and their families will avoid poverty if they follow three elementary rules for success – complete at least a high school education, work full time, and wait until age 21 and get married before having a baby. Based on an analysis of Census data, people who followed all three of these rules had only a 2 percent chance of being in poverty and a 72 percent chance of joining the middle class….”
…Ron Haskins of the Brookings Institution, testifying before Congress on June 5, 2012.

Data from The National Vital Statistics Report, “Births: Final Data for 2015” breaks down the birth rate for unwed mothers by age and race.

The results are staggering:

Births 2015

In 1965 approximately 25% of black children were born to unwed mothers. 50 years later it’s 71%. The War On Poverty has virtually destroyed the black family. 100% of the mothers 15 and under and 97.4% of mothers age 15-19 are not married.

It’s no wonder there has been little progress in moving up the economic ladder.

In the 1960’s out of wedlock birth was considered an unplanned pregnancy. Today, with the availability and reliability of birth control methods, many look at pregnancy as a choice. Taxpayers, who are struggling to make ends meet, rightfully question, “Why should I pay for choices others voluntarily make?”

Let’s unmask the real issue

There are three factors entering the budget fracas.

1. One side of the political aisle wants to change the behavior of the poor. They want to incentivize them to get an education, get a job, get off welfare, and move up the economic ladder through individual effort and initiative. Citizens are responsible for their own behavior.

2. The other side of the aisle sees things differently. They contend the argument should not be about behavior. They feel the real issue is inequality of income and wealth. The debate should be about why and how wealth should be redistributed – something for nothing.

3. The Tea Party (TEA = Taxed Enough Already) movement is a public backlash against the political establishment and wasteful spending.

Citizens are furious with the government confiscating the fruits of their labor while their standard of living is slipping and things continue to get worse. They want real tax cuts and spending cuts.

Politicos know that once you have instituted giveaway programs, rolling them back, no matter how ineffective the program is, will cause a huge public and media backlash. It’s politically easier to continue to waste tax dollars than admit failure.

Why haven’t the programs worked?

Government programs encouraging education and job skills have not worked because the political and community leadership is unwilling or unable to address the CORE of the problem.

I define culture as, “the unwritten norms, beliefs and values that define appropriate behavior.” Politicians and the media are correct when they point to income disparity between rich and poor; it’s very real. The dispute is over how to close the gap. The War on Poverty has made things worse. Insanity is defined as continuing with the same behavior expecting a different result.

Reducing welfare benefits to incentivize able-bodied people to work has also failed. We now have several generations who have lived their entire life on welfare. Politicos, community leaders, and clergy consistently hammer them. They’re told they are victims, discriminated against and should demand more money from the greedy rich. Are they poor because of the color of their skin or their lack of minimum job skills and work ethic?

Until the respective leaders stop spewing hatred and divineness, and redefine the definition of “appropriate behavior” from “dependent on others” to a “strong desire to be self-sufficient,” nothing will change. There must be a culture change before there is a behavior change.

It makes no difference which party is in power. Until there is a major leadership change in the poor communities, preaching a different and positive message (with media support), the poor will remain poor; trillions in tax dollars will be confiscated from the working class and redistributed (aka buying votes) while generations of poverty-stricken children will have no chance to improve their lot in life.

Will they ever learn?

Abe LincolnYou cannot help the poor by destroying the rich.

You cannot strengthen the weak by weakening the strong.

You cannot bring about prosperity by discouraging thrift.

You cannot lift the wage earner up by pulling the wage payer down.

You cannot further the brotherhood of man by inciting class hatred.

You cannot build character and courage by taking away men’s initiative and independence.

You cannot help men permanently by doing for them, what they could and should do for themselves.

Abraham Lincoln

And Finally…

“If you always protect your offspring in a cocoon they will never learn how to fly…” 

For more information, check out my website or follow me on FaceBook.

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Until next time…

Dennis
www.MillerOnTheMoney.com

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Work-In-Progress
Work-In-Progress

Whatever the reasons are and whether you like it or not, income/wealth inequality is big fucking problem. And growing. We can either do something about it (no, I don’t have the answers) or we will be screwed. You don’t think people will watch others eat steak as they starve to death do you?

I know millionaires who want their SS checks. Call me whatever you want but greed is just as bad as envy. They are related.

Rdawg
Rdawg

“I know millionaires who want their SS checks.”

Dude. Members of my very own family. Pensions. 401(k)s worth seven figures. Paid off everything. No money worries whatsoever.

I say: “You know, Mom (Dad, Uncle, Aunt), the Social Security system is a fraud. A Ponzi scheme. Unsustainable. Robbing Peter to pay Paul. Enslaving my son’s generation to pay for your lifestyle.”

Answer: “FUCK YOU!!! I PAID FOR THAT!!! THAT MONEY’S MINE!!! MINE, MINE, MINE, MINE!!! YOU KEEP YOUR HANDS OFF WHAT IS MINE!!! THE GOVERNMENT PROMISED ME THAT MONEY!!! IT’S NOT MY FAULT!!! AAAAAAAAAAAAAAGGGGGGGHHHH!!!”

So yeah. It’ll stop when it stops. I am not counting on seeing that money. I have written my congress-critter about this mess. I have been told to bugger off.

I hide and watch.

Dennis Miller

Hi,

Everyone who paid into Social Security for over 50 years wants their checks, regardless of how much money they have. It was sold to the public as an annuity, not a transfer of wealth to buy votes. If that money had been paid to a private insurance company benefits would be a heck of a lot higher. Also, payments are already skewed away from the upper class.

The problem is greed – on the part of elected officials. There is no limit on membership to the middle or upper class. Work your tail off, live below your means and there is a good shot you will move up the economic scale.

It’s the greedy politicians that sell greed and free stuff to cover up their misdeeds that is the problem. The Abe Lincoln quote is spot on.

Ironically a friend responded to the article mentioning that, since the Great Society was born we spent $22 trillion transferring wealth to the poor. Our national debt is $20 trillion. When are people going to realize incentivizing out of wedlock birth, and giving away money does not work?

I tried to outline one step in the right direction, but it will probably not happen in my lifetime. I can tell you what does not work – the same stuff we have been doing since LBJ.

best regards,
Dennis Miller

rhs jr
rhs jr

There is a huge problem. One side of the OK Coral is stacking with the money gang and the other with people nobody wants to hire. Both sides want a peaceful solution?

Work-In-Progress
Work-In-Progress

We’ll probably have some form of genocide. Either the rich kill the poor because muh greed or the poor will kill the rich because muh envy or because muh hunger.

JIMSKI
JIMSKI

Who fucking cares. There are more important issues facing our nation.

https://www.huffingtonpost.com/entry/ines-rau-transgender-playmate_us_59e8ab69e4b0d0e4fe6d98f8

That’s it. I am done with this country. Every fcking corner now has this shit.

rhs jr
rhs jr

Right, that thing fits in either corner (but not in God’s flyover country).

Mad as hell
Mad as hell

The problem is one of which is first – the horse or the carriage. Because of the repubs and dems doing their masters (donors) bidding, and allowing the mass outsourcing of jobs overseas, and those donors becoming entrenched monopolies, the lower classes have all but given up on entrepreneurial pursuits. Also, the ones that do want a job, are forced to take on enormous debt just to get a college “degree” which is nothing more than a “ticket to work” through the HR gate. Do you really think that half of the jobs in this country need a bachelors degree or higher?
Please, we became the most industrialized nation in the world with the average education level being the 8th grade. Henry Ford was a lowly farm boy…With those kind of choices, is it any wonder why some are choosing welfare or “the dole” instead of starting a business or going to work? At least they are debt free and judgement proof.
Those that do get jobs, and do attempt to own / operate businesses today are forced to work like dogs for the government, keep up with inflation – Federal Reserve policy – lawsuits by the snowflakes, auditing by the IRS and competition from Chinese imports. Oh, and lets not even go in to the healthcare monopoly and scam that takes 20% of every dollar that taxes and inflation does not. This all on top of worrying if you will get crushed by the bigger company that has paid more to their local politician to make sure YOU can’t compete. Why work? Why form capital or start a business. So you can support everyone else, and take on more risk?
Those that are older and were successful in life, get to continue having ZERO savings growth due to ZIRP again – FED POLICY, and their only choices are Social Security or the risky stock market. They have to worry if they are going to wake up to a 2008 scene with a large portion of their nest egg gone thanks to Wall Street scams – again those donors. So their choice is slowly bleed out their savings by inflation, or risk their money in the markets and possibly suffer a mortal blow and then be forced to be a greeter at Wal Mart.

I agree somewhat as to your conclusions regarding personal choices, but I think that unfortunately people are being forced in to some of these bad choices, because they look at the options for bettering their life, and simply say “Fuck it” and give up. Similar to why about 65% of the population does not vote. They simply see that no matter what path they take, it is a fools errand, and that it is simply NOT worth the effort.

Sad, but this country first needs to stop the damn corruption, get rid of entrenched politics and enforce the RULE OF LAW on EVERYONE – Elite or otherwise. Until that happens, our trip to being a banana republic is virtually assured.

Wip
Wip

That was a damn good rant. There is no where near the economic freedom that is needed in this country.

BB

Until ” dependent on others ” to a ” strong desire to be self-sufficient ” Nothing will change.
There must be ” culture change ” before there is behavior change.
Good Luck with that .
There will be genocides but not between rich and poor.It will be tribal or racial.Just be ready .

Truther, yup I went there.
Truther, yup I went there.

An observation. We were at war with muslims. The narrative was religious terrorism. We got a Muslim Barrack Hussein Obama as President. His narrative was class warfare, gender neutrality, racial division, and globalism. We got Trump. A white rich straight man, trying to bring America together, called a racist, misogynistic bully with a focus on nationalistic leanings. The narrative provided by msm of Trump, may we observe, could provide telltale signs of our next leader in chief.

I can only assume our next President will be a pro choice, lesbian transgender newly minted immigrant, raised from the poor inner city, never had a job but married to a Chinese Muslim with an adopted Russian child, living in Alabama but educated for free at Cambridge, that drives an electric bicycle while being vegan, having tattoo’s that peak out from under a pink pussy hat with a twitter moniker of “me24u2” going by the name Meh Phuch Yuh Loong Tym.

BUCKHED
BUCKHED

Trump,Yup…the next president will be a gender neutral named “Me Love U Long Time ” .

TampaRed-
TampaRed-

good article dennis–
want a good example of welfare —
today i saw a story about how the epa head talked about cutting ethanol subsidies–
that pos sen grassley of iowa came out and said that epa’s nominees would not be confirmed,and apparently he said privately that none of trump’s judicial nominees would be confirmed if ethanol is cut–

MMinLamesa
MMinLamesa

Just for fun, write your Congressman and express your concern about the out of control spending in DC. Ask him why he’s not on the steps of the Capital, screaming bloody murder about the suicide we’re committing.

If your worthless Congressman is anything close to my worthless Congressman-Mike Conaway TX-11-you’ll get more hummahummas per paragraph then you thought possible.

In the meantime, as long as net tax receivers can vote, expect this bullshit to continue, even accelerate.

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