Samuelson: It’s the welfare state, stupid

By Robert J. Samuelson (Hat tip: John H. Detweiler) - If you doubt there’s an American welfare state, you should read the new study by demographer Nicholas Eberstadt, whose blizzard of numbers demonstrates otherwise. A welfare state transfers income from some people to other people to improve the recipients’ well-being. In 1935, these transfers were less than 3 percent of the economy; now they’re almost 20 percent. That’s $7,200 a year for every American, calculates Eberstadt. He says that nearly 40 percent of these transfers aim to relieve poverty (through Medicaid, food stamps, unemployment insurance and the like), while most of the rest goes to the elderly (mainly through Social Security and Medicare).

By all means, let’s avoid the “fiscal cliff”: the $500 billion in tax increases and federal spending cuts scheduled for early 2013 that, if they occurred, might trigger a recession. But let’s recognize that we still need to bring the budget into long-term balance. This can’t be done only by higher taxes on the rich, which seem inevitable. Nor can it be done by deep cuts in defense and domestic “discretionary” programs (from highways to schools), which are already happening. It requires controlling the welfare state. In 2011, “payments for individuals,” including health care, constituted 65 percent of federal spending, up from 21 percent in 1955. That’s the welfare state.

Yet, the subject is virtually taboo...  Read more at Washington Post Read More......

The Tragic View Returns

In hard times, as in war, questions arise that were once considered taboo. As we approach $15 trillion run up in aggregate national debt, and confront the reality of a welfare state that is predicated on flawed assumptions about everything from demography to human nature, a rendezvous with brutal reality is now upon us.

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A Reckless Congress

WSJ|OPINION, 7/17/2009 - Democrats want to ram through one of the greatest raids on private income and business in American history. ∴ Say this about the 1,018-page health-care bill that House Democrats unveiled this week and that President Obama heartily endorsed: It finally reveals at least some of the price of the reckless ambitions of our current government. With huge majorities and a President in a rush to outrun the declining popularity of his agenda, Democrats are bidding to impose an unrepealable European-style welfare state in a matter of weeks. ∴ Mr. Obama's February budget provided the outline, but the House bill now fills in the details. Read more at Opinion Journal...

Hat tip: Jeff Kubler Read More......