Our Government Has Become An Entitlements Machine
Nicholas Eberstadt writes in the WSJ about the expansion of the handout state -- oh, and before you start looking to the usual suspects, the Democrats, entitlement spending was roughly 8% higher in Republican admins.
(As I've said here before, the Republicans, in reality, are the party of slightly less ginormous government -- and a lot of talk about how wonderful they are and how evil the Democrats are for being for entitlements.):
The American republic has endured for well over two centuries, but over the past 50 years, the apparatus of American governance has undergone a radical transformation. In some basic respects--its scale, its preoccupations, even many of its purposes--the U.S. government today would be scarcely recognizable to Franklin D. Roosevelt, much less to Abraham Lincoln or Thomas Jefferson.What is monumentally new about the American state today is the vast empire of entitlement payments that it protects, manages and finances. ... As a day-to-day operation, it devotes more attention and resources to the public transfer of money, goods and services to individual citizens than to any other objective, spending more than for all other ends combined.
...In 1960, U.S. government transfers to individuals totaled about $24 billion in current dollars, according to the Bureau of Economic Analysis. By 2010 that total was almost 100 times as large. Even after adjusting for inflation and population growth, entitlement transfers to individuals have grown 727% over the past half-century, rising at an average rate of about 4% a year.In 2010 alone, government at all levels oversaw a transfer of over $2.2 trillion in money, goods and services. The burden of these entitlements came to slightly more than $7,200 for every person in America. Scaled against a notional family of four, the average entitlements burden for that year alone approached $29,000.
A half-century of unfettered expansion of entitlement outlays has completely inverted the priorities, structure and functions of federal administration as these were understood by all previous generations. Until 1960 the accepted task of the federal government, in keeping with its constitutional charge, was governing. The overwhelming share of federal expenditures was allocated to some limited public services and infrastructure investments and to defending the republic against enemies foreign and domestic.
...The proud self-reliance that struck Alexis de Tocqueville in his visit to the U.S. in the early 1830s extended to personal finances. The American "individualism" about which he wrote did not exclude social cooperation--the young nation was a hotbed of civic associations and voluntary organizations. But in an environment bursting with opportunity, American men and women viewed themselves as accountable for their own situation through their own achievements--a novel outlook at that time, markedly different from the prevailing attitudes of the Old World (or at least the Continent).
...As Americans opt to reward themselves ever more lavishly with entitlement benefits, the question of how to pay for these government transfers inescapably comes to the fore. ... The taker mentality has thus ineluctably gravitated toward taking from a pool of citizens who can offer no resistance to such schemes: the unborn descendants of today's entitlement-seeking population.
Those who think of this as merely robbing from the rich to pay for the middle class and the poor are wrong. He's right -- it's robbing from unborn babies. This is really what American independence has come to?
Yeah, right, crack another beer and turn up the TV.
Nicholas Eberstadt holds the Henry Wendt Chair in Political Economy at the American Enterprise Institute. This piece was excerpted from "A Nation of Takers: America's Entitlement Epidemic," forthcoming from the Templeton Press in October (not yet on Amazon). His piece ran as a debate or response (hard to tell which) with a piece in the WSJ by William A. Galston, "Are Entitlements Corrupting Us? No -- They're Part of the Civic Compact."
via @rogerkimball







Over 110 MILLION Are On Some Type Of Welfare
The population of the United States is about 330 Million. So that is 1/3 of the country.
Those paying taxes is about 52%. We are about to run out of OPM.
I'm buying shelf stable food, bullets and silver.
I'm just wondering when the republic will fall.
Jim P. at September 3, 2012 12:24 AM
The bulk of these entitlements amount to a transfer of wealth from men to women (medicare, medicaid, social security). Too bad for all those "independent" females when the gravy train goes off the rails. The girls won't be able to embrace "traditional" values fast enough. Trouble is, the guys have seen the truth about females' true nature.
Boo hoo, huh?
Jay R at September 3, 2012 9:17 AM
I'm buying shelf stable food, bullets and silver.
I'm learning to make beer. No matter how shitty things get, people will still want beer. And if things get so shitty that I can't make beer, I don't think I want to be alive anyway.
Steve Daniels at September 3, 2012 2:05 PM
Yeah, it sucks that brewer's yeast isn't shelf stable long term.
That just means you have to use it on a regular basis. ;-)
Jim P. at September 3, 2012 3:29 PM
Yeah, it sucks that brewer's yeast isn't shelf stable long term.
You can keep a strain of yeast alive for a *long* time, given enough planning and care. It propagates well, and is easy to store in a refrigerator.
Steve Daniels at September 3, 2012 9:52 PM
One thing the WSJ article didn't point out in so many words is that entitlement payments now consume 100% of federal revenues. Every single penny of your income taxes goes to a transfer payment. That means that every single other thing the federal government does -- law enforcement, defense, infrastructure projects, etc. -- is paid for by borrowing.
Well, not really. That last bit was true up until about three years ago, when the market for Treasuries became so saturated that there was no longer any market for them. Since then, all Government operations other than entitlements have been paid for by debasing the currency, through the subterfuge of having the Federal Reserve "buy" Treasuries and other bonds that have no market value but the federal government is on the hook for. (Did you know that the Fed has been buying mortgage-back securities? I didn't either, until I read the Bloomberg article about it this morning.)
This is the federal government "paying" for things by firing up the printing presses. Our entire economy is now runnning on Confederate dollars. I realized when I read the Bloomberg article why Washington is so keen these days on having a command economy, even though many of them privately admit that it isn't working: the lack of economic activity, caused by overbearing and arbitrary government regulation, is the only thing currently standing between us and hyperinflation.
Cousin Dave at September 4, 2012 7:16 AM
Cousin Dave:
I thought you might enjoy this link. In June, three times as many people hit the poverty level as found jobs.
http://www.zerohedge.com/news/june-foodstamp-recipients-hit-all-time-high-three-times-many-americans-enter-poverty-find-jobs
I wouldn't expect those transfer payments to be cut back any time soon. On the surface it appears we are a country full of people who cannot even feed ourselves. On the other hand, an awful lot of those transfer payments are based on nothing but age, and go to people who are already well-off.
Pirate Jo at September 4, 2012 8:22 AM
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