¶ … benefiting from U.S. social welfare funds? Is it just the poor, or are other groups also receiving financial benefits from the U.S. Treasury? This paper delves into those issues and provides credible resources to ferret out the real facts.
Not for people in poverty exclusively: After pointing out that the Reagan Administration's conservative agenda created an "historic shift" in welfare benefits, journalist Mimi Abramovitz reports that subsequent to the Reagan cuts social welfare programs in fact dole out more taxpayer money to "middle and upper classes" than to poor people (Abramovitz, 2001). The federal government (in 2000) spent $235.9 billion on assistance programs for those in the low income bracket, and yet some $793.9 billion of taxpayer money went to programs that "do not use poverty or need as a criteria…" (Abramovitz, 299). Moreover, the Social Security (and other social insurance programs) "grants" increase with inflation, allowing the purchasing power of recipients to rise; however, the AFDC (welfare) dollars paid to low income people "…fell 47%" between 1970 to 1999 (Abramovitz, 299).
Writing in The New York Times, journalist Suzanne Mettler points out that factions of the American public are for some reason in denial as to their receipt of federal social benefits. A poll sited by Mettler shows that when 1,400 Americans were asked if they have ever received money "from a government social program" fifty-seven percent said they had not (Mettler, 1). However, when the pollster (Cornell Survey Research Institute) specifically mentioned the programs in question (Social Security; unemployment insurance; home-mortgage-interest deduction; and student loans) some 94% of the same people that had denied using "a government social program" in fact had received funds from "at least one" (and on average, the "no" respondents had used four) (Mettler, 1).
The Derek Thompson article in The Atlantic explains that "fully 55% of all Americans…have received benefits from one of…" the following: Social Security, Medicare, Medicaid, welfare, unemployment benefits and food stamps" (Thompson, 2012).
Why does the public think only the poor benefit? Because there is so much negative chatter in the media (especially the conservative media) about how evil big government is and how people (especially the poor) mooch off taxpayer dollars for food stamps, etc. This non-stop rhetoric has an impact on opinions. Rush Limbaugh recently made a very big deal out of those who get food stamps, as though most recipients were lazy or cheaters.
TWO: Two groups that benefit from social welfare policies -- how and why
Tax credits, certain deductions and "preferences" can also be seen as the government actually writing a check to affluent citizens (Lawler, 2013). For example if an upper middle class (or wealthy) family is buying a home and they get a $10,000 tax credit, say, for installing solar energy, it is "…the same as the government writing you a $10,000 check," Lawler explains. Families with children get certain credits too, and that amounts to receiving money from the government. Hence, the "hidden welfare state" benefits "wealthier households," Lawler points out.
Why are these benefits bestowed on the wealthy? Congress passes amendments to the tax code to benefit constituencies -- and to get votes and also to encourage certain actions by citizens (installing conservation measures to one's property, for example, saves electrical energy and reduces one's carbon footprint, hence a tax break is a stimulus). However, notwithstanding the tax credits that go to the wealthy, Arloc Sherman and colleagues assert that "…more than 90% of the benefit dollars…" from entitlements go to folks who truly need those programs. Republican presidential candidate Mitt Romney and former Senator Rick Santorum asserted in 2012 that the "work ethic" was being destroyed because people are leeches off government funding and they prefer getting checks from Uncle Sam to actually working. Turns out that's not really true, as Sherman notes: "…91% of the benefit...
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