This year, 70% of all government spending will be direct payments to individuals

Investors Business Daily reports.

Excerpt:

Buried deep in a section of President Obama’s budget, released this week, is an eye-opening fact: This year, 70% of all the money the federal government spends will be in the form of direct payments to individuals, an all-time high.

In effect, the government has become primarily a massive money-transfer machine, taking $2.6 trillion from some and handing it back out to others. These government transfers now account for 15% of GDP, another all-time high. In 1991, direct payments accounted for less than half the budget and 10% of GDP.

What’s more, the cost of these direct payments is exploding. Even after adjusting for inflation, they’ve shot up 29% under Obama.

Where do these checks go? The biggest chunk, 38.6%, goes to pay health bills, either through Medicare, Medicaid or ObamaCare. A third goes out in the form of Social Security checks. Only 21% goes toward poverty programs — or “income security” as it’s labeled in the budget — and a mere 5% ends up in the hands of veterans.

So a lot of the money is not even going for poverty! More:

Instead, a surprisingly large amount of federal money is handed out to wealthy Americans through Social Security, Medicare, farm subsidies, unemployment benefits, conservation programs, disaster payments and other programs.

An IBD analysis found that the richest 1% of Americans, in fact, receive roughly $10 billion each year in federal checks.

Outgoing Sen. Tom Coburn, R-Okla., who exposed these vast payment programs available to the rich, said “this reverse Robin Hood-style of wealth distribution is an intentional effort to get all Americans bought into a system where everyone appears to benefit.”

Why is this bad? It’s because government only spends the money that it collects from other individuals and businesses. They should be spending that money on government responsibilities like roads, the military and foreign policy. Not redistributing wealth to particular people. That just makes a certain segment of the population dependent on government and makes them more likely to vote for bigger government. Government is notoriously terrible at knowing who is really in need of help. Plus, private charities are more likely to push poor people in the direction of independence and responsibility. Government basically says, “here’s the money, and keep doing whatever you’re doing because we don’t have a plan for you to get out of poverty”.

We don’t want to be the kind of country that punishes people for working or for starting businesses, but it seems like that is the direction we are heading in.

2 thoughts on “This year, 70% of all government spending will be direct payments to individuals”

  1. “private charities are more likely to push poor people in the direction of independence and responsibility”.
    Exactly. We had a dear woman and her daughter live with us for six months. She had been on all manner of government aid throughout her life. It wasn’t until she was with us and then subsequently at the Union Gospel Missions shelter (or as I call it the “holy sorority”) that she is finally making progress toward supporting herself. Not only that, but she is breaking so many of the cycles of abuse, poverty, and poor health that was handed down from parents and grandparents.

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    1. Right! And I just don’t see how handing someone a check filled with money taken from her neighbors is going to fix the problem of these cycles that she inherited from her family and friends. I don’t think the government wants to break her out of it, since if she is dependent, she will keep voting for the people who gave her the money.

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