Tag Archives: Dependency

Tad Hopp accumulated $100,000 of college debt, now he wants a taxpayer bailout

Brain vs Heart, from: theawkwardyeti.com
Brain vs Heart, from: theawkwardyeti.com

Here’s an interesting editorial from a “Christian” left blog. (H/T Acton Institute via Lindsay)

The author, Tad Hopp is graduating a PCUSA seminary – an extremely liberal, left-wing denomination.

He writes:

I graduated college in 2007.

[…] I majored in English, not exactly what most people consider a ‘marketable’ or ‘practical’ degree…

[…]I went to a somewhat expensive private school…

[…]I did what many students in their last year of high school do: I went to the school where I felt I was being called…

[…]I do not regret my four years at my undergraduate institution one bit.

[….]When I graduated college, I owed nearly $50,000 in student loan debt and was unemployed for almost six months before I finally found a low-paying office job.

[…]“Can’t find a job? Well, you should have majored in something more ‘practical’, like economics or business or medicine.” Yeah, that would be great…if those were the subjects where my skills and passions lie. They’re not.

[…]I felt called to go to seminary.

[…]I will graduate seminary with close to six figures worth of student loan debt.

Let’s take stock of what he’s said so far:

  • he studied English, a language that he already spoke, which has one of the lowest employment rates
  • he was warned by people who knew something about earning and saving money not to study English
  • he went to a school he couldn’t afford to go to, and he graduated with $50,000 in debt
  • he went to seminary, another subject that doesn’t pay, and added another $50,000 or so of debt
  • he says that he doesn’t have to study subjects that lead to a career because he isn’t “passionate” about them
  • he “followed his heart” by going to the school that he had mystical, emotional, intuitions about = “calling”

My advice to Tad at this point would be for him to take the Bible seriously when it says this:

2 Thessalonians 3:10:

10 For even when we were with you, we used to give you this order: if anyone is not willing to work, then he is not to eat, either.

And 1 Timothy 5:8:

8 But if anyone does not provide for his own, and especially for those of his household, he has denied the faith and is worse than an unbeliever.

The Bible is giving us the goal of working. So what should we do to be able to reach that goal? Why should anyone hire us? What is working really about? It’s those kinds of questions that should guide what we study in school, and what jobs we pursue.

We know what careers have the highest starting salaries and mid-career salaries:

Starting and Mid-Career salaries by profession (click for larger image)
Starting and Mid-Career salaries by profession (click for larger image)

(Source)

Why do some people get paid more than others? The answer is supply and demand. Prices are a way of determining what is most valued by your fellow man. Business owners pay more to people who offer their customers more value. If you really want to serve your neighbor, you have to learn something they really want, but can’t easily obtain. And then you will be paid more. You can’t do what makes you happy. You have to do what makes customers happy. That’s how the free market works – you make money when you provide something of value to others. You make money when you serve others. This is something that is very hard for self-centered, feelings-driven young progressives to grasp. But it’s something older Americans all know.

More Tad:

Is the PCUSA doing anything to address this crisis?

[…]What has our government done to address this issue?

[…]I, like so many in my generation, voted for Obama…

[…]It seems to me that we’ve bought into the lie that student loan debt is brought on by the individual person…

[…]You know what I think might stimulate the economy? Automatically cancelling every single outstanding student loan!

He insists that the results of his own choices aren’t his fault. But didn’t he make the choices about what to study? Didn’t he make the choice to follow his heart? Didn’t he disregard the advice of people who urged him to be practical? Who is to blame, if not he, himself?

Tad needs to push away all his friends who told him to “follow his heart” and stick close by his friends who told him to focus on providing value to others. Don’t look for advice from dreamers, look for advice from doers. Dreamers talk. But doers have demonstrated the ability to create plans that work to achieve results.

By the way, some of you might be wondering how serious this person was about his Christianity. Well, in another post, he comes out as gay. So clearly the Bible is being interpreted in a way where feelings are overturning the plain meanings of words. People who read the Bible closely never come away with the message that they should follow their hearts.

The lottery is a voluntarily tax on the poorest people

You need to study math so that you don't end up doing this your whole life
You need to study math so that you don’t end up doing this your whole life

Here is a good article on basic economics by Arthur C. Brooks, president of the American Enterprise Institute (a free market think tank).

He writes in the Wall Street Journal:

Powerball—the lottery shared by 44 states, the District of Columbia and two territories—is just one of the sweepstakes run by 47 jurisdictions in the U.S. These games produce nearly $70 billion a year in government revenue and enjoy profits of about 33%—much higher than margins in the private gambling industry.

Who are these lotteries’ most loyal customers? Poor people. Lots of folks buy the occasional ticket, but studies have long shown a steady association between poverty and lottery play. Many scholars report that the poorest third of Americans buy more than half of all lotto tickets, which is why states advertise so aggressively in poor neighborhoods.

Harmless entertainment, you may say, but poor people don’t see it that way. They tend to view lottery tickets as an investment. Duke University social scientists Charles Clotfelter and Philip Cook reported in a 1990 study that people earning less than $30,000 a year are 25% more likely to say they play the lottery for the money rather than the entertainment.

[…]Even if someone feels compelled to throw a financial “Hail Mary,” the lottery is a terrible choice. The odds of winning last week’s jackpot were about 1 in 292 million. And the average return from $1 spent on lottery tickets is 52 cents, according to a 2002 paper by Melissa Kearney, an economist now at the University of Maryland.

But this isn’t easy to see for those with low levels of education. My own analysis of survey data from the National Gambling Impact Study Commission suggests that someone who didn’t attend college may think the return on lottery tickets is 40% higher than the estimate given by a person of similar demographics who holds a degree.

If you took a poll of how people who bought lottery tickets voted, I’m certain that you would find that 90% of them are Democrats. This is because Democrats are economically illiterate, judging for their support for minimum wage increases and opposition to free trade. I suppose there would be a fair number of Donald Trump supporters in there, too. People can can do math don’t buy lottery tickets. It’s much better to pay off debt and then start saving for your retirement. Although public schools used to teach math and basic economics, now they are so busy teaching young people to hate their parents, their God and their country that there is no time for teaching math and basic economics. Even if the public school teachers knew math and basic economics, which they probably don’t, judging by how members of teacher unions vote.

Apparently, people on the political left now oppose teaching math, because it’s racist or sexist or something.

The Daily Caller explains:

Is math sexist? One Vanderbilt University professor believes that it is.

Writing in an academic journal last month, the professor complained about the masculinization of math and how it causes the oppression of women.

Describing mathematics as a “white and heteronormatively masculinized space,” professor Luis A. Leyva insists that factors including teacher expectations and cultural norms “serve as gendering mechanisms that give rise to sex-based achievement differences,” per Campus Reform.

[…]In the article titled “Unpacking the Male Superiority Myth and Masculinization of Mathematics at the Intersection,” Leyva says that teachers “contribute to the masculinization of the  domain that unfairly holds students to men’s higher levels of achievement and participation as a measure of success.”

In other words, being held to a high standard keeps women down.

Do you ever wonder why Democrats want to halt all education reform? Well, people who can’t do math tend to be awful at earning and saving money. And do you know what happens to people who are terrible at earning and saving money? They become dependent on welfare and they vote for bigger government, i.e. – Democrats.

The Pew Research Center, a liberal organization, actually did a study on this uninformed voter problem.

Excerpt:

So Republicans are more knowledgeable than Democrats, contrary to what many would like to believe.

According to whom?  None other than the Pew Research Center, a left-of-center organization.  Moreover, Pew’s latest survey only reaffirms previous surveys demonstrating the same result.

In fact, the results weren’t even close.

In a scientific survey of 1,168 adults conducted during September and October of last year, respondents were asked not only multiple-choice questions, but also queries using maps, photographs and symbols.  Among other subjects, participants identified international leaders, cabinet members, Supreme Court justices, nations on a world map, the current unemployment and poverty rates and war casualty totals.

In a 2010 Pew survey, Republicans outperformed Democrats on 10 of 12 questions, with one tie and Democrats outperforming Republicans on just 1 of the 12.  In the latest survey, however, Republicans outperformed Democrats on every single one of 19 questions.

[…]Those Pew results are confirmed by some surprising other sources.  According to a New York Times headline dated April 14, 2010, “Poll Finds Tea Party Backers Wealthier and More Educated.”  Shattering widespread myths, that survey revealed that Tea Party supporters were more likely to possess a college degree than their counterparts (23% to 15%), and also more likely to have completed post-graduate studies (14% to 10%).  Tea Partiers were also more likely to have completed “some college” by a 33% to 28% margin, and substantially less likely to have not completed high school than non-supporters (3% versus 12%), or to possess only a high school degree (26% versus 35%).

I hope no readers of this blog drop math before they go to college or trade school, and you all better be studying something that pays if you do go to college. I don’t want to catch any of you buying lottery tickets as your retirement plan. I want to encourage you all to make a long-term plan for your retirement, and make sure that the pieces in the short-term fit with that long-term plan.

Young workers are paying Social Security taxes but will they ever collect benefits?

What if we had no money for anything except entitlement spending?
What if we had no money for anything except interest and entitlements?

The way Social Security taxes work is that you pay 12.4% of your salary, and another 2.9% for Medicare. That’s 15.3%, before any federal, state and local taxes. So, what are you getting for this 12.4% contribution to the Social Security welfare program? You’re supposed to be able to withdraw that money when you retire, but that money isn’t being stored in an account with your name on it. It’s being spent right now on people who are already retired. Will there be money available for you to withdraw when you retire?

If you’re a young person who retires in 2035 or later, the answer is absolutely not.

The Daily Signal has the numbers:

The American people need to know the state of finances of the Social Security program so they can better understand why reform is not only necessary, but absolutely essential. Here are five takeaways from the most recent financial report:

  • $66 Billion Cash-Flow Deficit in 2016

Social Security is still considered solvent and able to pay full benefits because it has accumulated a $2.8 trillion trust fund, but since the entirety of its trust fund consists of IOUs, cash-flow deficits must be financed by general revenue taxes or new public borrowing.

Since 2010, the Old-Age and Survivors Insurance program has taken in less money from payroll tax revenues and the taxation of benefits than it pays out in benefits, generating cash-flow deficits.

  • $14.3 Trillion in Unfunded Obligations

However, this figure assumes that the $2.8 trillion in trust fund reserves are available to be spent. The problem is that these reserves represent liabilities for the U.S. taxpayer. The payroll revenues have been spent and the trust fund was credited with U.S. bonds, which represent claims on the American taxpayer. This is why the actual unfunded obligation is $14.3 trillion.

The trustees report that Social Security’s unfunded obligation has reached $11.5 trillion. That is the difference between what the program is expected to receive in income and what is expected to spend over the 75-year horizon the program’s actuaries consider for projections.

  • Insolvent by 2035

Based on current projections, the Social Security Old-Age and Survivors Insurance trust fund will be depleted by 2035, reducing Social Security’s expenditures automatically to what the program will receive in revenues, regardless of benefits due at that time.

Social Security is only legally permitted to spend funds in excess of its revenues until its trust fund is depleted.

  • 25 Percent Automatic Benefit Cut

What this means for beneficiaries is that in the absence of congressional action, benefits could be delayed or indiscriminately reduced across the board by 25 percent.

Once the Social Security trust fund is depleted, the program will only be able to pay 75 percent of scheduled benefits, based on payroll and other Social Security tax revenues projected at that time.

  • High Costs to Delaying Reform

The trustees highlight that if Congress waits until the trust funds become exhausted, the cost of making the program solvent will be as much as 40 percent higher, meaning significantly greater benefit cuts and/or tax increases for workers and beneficiaries.

There are several key reforms Congress could pursue to preserve benefits for the most vulnerable beneficiaries without increasing the tax or debt burden on younger generations. However, the longer Congress waits the act, the larger the changes that will be necessary to address Social Security’s combined financing shortfall.

Young people working today who retire in 2035 or later will never see a dime of their Social Security contributions. What’s more likely is that the taxes on their income will go even higher. Take a good look at your paycheck, and you will see money being deducted for this entitlement program. This is money you will never see again. It is being used now, to buy the votes of elderly people who vote against reform when they vote Democrat.

The only person to try to do something about these Social Security problems was George W. Bush – a Republican. But his effort to set up private savings accounts was stopped by Democrats, who depend on the votes of the people who collect from Social Security.

These problems are even worse when you realize that Social Security is only one of the entitlement programs that is going bankrupt. There are others – as well as interest on the $20 trillion debt. ($10 trillion of which was added by Obama in his 8 years as Welfare President). Young people: you are paying taxes for programs that will not be there for you when you need them. Stop voting Democrat, because money matters!

Welfare program usage drops 85% after work requirement reinstated

This story is from National Review, and it really made me think about where all the money that I’ve paid in taxes over the years has gone.

Excerpt:

After Alabama reinstated food-stamp work requirements for able-bodied adults without dependents, the rolls dropped by 85 percent.

[…]According to the Alabama Department of Human Resources, between January 1 and May 1, 13 counties in the Yellowhammer State saw their food-stamp rolls drop by a combined 85 percent. The reason? At the beginning of the year, those 13 counties joined the rest of the state in ending a years-long exemption from work requirements for ABAWDs — able-bodied adults without dependents — participating in the federal Supplemental Nutrition Assistance Program.

On New Year’s Day, there were 5,538 ABAWD enrollees across the 13 formerly exempted counties; by the beginning of May, there were 831. That mirrors a sharp statewide decline, which began on January 1, 2016, when the same exemption ended in Alabama’s 54 other counties. At the beginning of last year, the state had 49,940 able-bodied adults without dependents on its SNAP rolls; by May 1 of this year, that number was 7,483 — a drop of 85 percent.

The article notes that work requirements on welfare programs were dismantled at the federal level by the Obama administration in 2009.

As part of the American Recovery and Reinvestment Act, signed into law by President Obama that February, Congress “temporarily” suspended the conditions on ABAWD SNAP enrollees nationwide. The suspension was supposed to extend only through 2010, but no government initiative is temporary. Eight years later, ABAWD time-limit waivers are still in effect in at least part of 36 states; ten states remain entirely exempt.

The article also notes that Kansas (in 2013) rejected Obama’s federal waiver. The result? Welfare program usage fell 72%.

The article concludes:

The overall food-stamp population remains large: Forty-four million Americans — about one in seven — at a cost of $71 billion to the federal government last year. Compared to other categories of recipient, that of able-bodied adults without dependents is small. But more than savings is at stake in removing clingers-on from the dole. A free people does not depend on the government for its daily bread. Those who can work, should.

People who have jobs don’t need welfare, but these people were literally choosing not to work so that they could collect welfare. They could have worked if they wanted to, but they chose not to.

How do you think that people who are dependent on government vote? Do they vote for smaller government and lower taxes? All that Obama achieved by attacking welfare reform was to buy hundreds of thousands of votes from dependent people. But he didn’t use his own money to do this – he used mine. I could have used my money for my own life priorities, but Democrat politicians know better than me, apparently. My job is just to work to earn the money, but I’m too stupid to know how to spend it. Other smarter people who are better than me know best about how to spend it. And they spend it on buying the votes of lazy people so they can get re-elected.

Trump signs bill to allow states to drug-test applicants for unemployment benefits

Ted and Heidi Cruz have a plan to simplify the tax code
Ted Cruz and and his supportive wife Heidi

I liked this story, because not only did it talk about Ted Cruz, but it also shows a major difference between Republicans and Democrats.

The story is from the far left Dallas Morning News.

Excerpt:

President Donald Trump on Friday signed legislation backed by two Texas Republicans that will allow states to expand the pool of applicants for unemployment benefits who can be drug tested.

The bill, sponsored by Sen. Ted Cruz of Texas and Rep. Kevin Brady of The Woodlands, nullifies a Labor Department rule that went into effect in September limiting drug tests to applicants who had a job that does regular drug screenings.

“Under the previous administration, the Department of Labor undermined the ability of states to conduct drug testing in their programs as permitted by Congress,” Cruz said in a written statement. “This rule was yet another example of executive overreach by the Obama administration, and I commend President Trump for signing this resolution into law.”

The measure traveled down a partisan path in Congress, passing through the Senate earlier this month with a party-line vote. Four Democrats in the House voted in favor of the bill in February, but no Texans.

“After 5 years of battling with the Obama Department of Labor, states like Texas will now be allowed to drug test folks on unemployment to ensure they are job ready from day one,” Brady said in a written statement. “This is a win for families, workers, job creators, and local economies.”

[…]“We are not helping anyone by leaving them in a position where they are dependent on and addicted to drugs,” Cruz said.

I find this law so reasonable that I cannot believe that anyone who has a job and pays taxes could oppose it. Now, it’s true that a lot of Democrats either don’t work or get money from government salaries, government spending, or welfare. But even so, I would expect them to see that it is wrong to waste the taxpayer dollars of honest workers and their entrepreneurial employers on people who are addicted to drugs.

I hope that this bill will clear the way for conservative governors to get people off of welfare and into the workplace.

My favorite governor is Scott Walker, and he is discussed in this recent article from the center-left The Hill.

Excerpt:

Wisconsin Gov. Scott Walker (R) on Monday said he would ask the state’s Republican-led legislature to undertake one of the most aggressive welfare reform packages since a wave of new measures passed in the mid-1990s.

Walker’s plan, “Wisconsin Works for Everyone,” would impose new work requirements on both able-bodied adults with school-age children who receive state food assistance and those who receive housing assistance. Both work plans, which would be tested on a pilot basis, would require recipients to be employed for at least 80 hours per month, or to be enrolled in job training programs. Those who do not meet work requirements would see part of their benefits cut.

“We believe our public assistance programs should ask able-bodied adults to take steps toward self-sufficiency through work, while also providing comprehensive tools to help them get and keep a job,” Walker said Monday.

The Wisconsin Republican has made welfare reform a key element of his second term in office.

“In 2017, we are going to push the federal government to allow Wisconsin to go even further, to be a leader once again on welfare reform,” Walker said last week during his State of the State address.

The plan proposed Monday would expand job training programs and employer resource networks for those who receive government aid. It would create an earned income tax credit specifically aimed at getting younger Wisconsinites into the workforce, and it would require existing business license requirements to be reviewed by a state panel in hopes of reducing red tape.

 

I also expect that Walker’s plans will get no Democrat support.

It really says something about how differently Republicans and Democrats view the money they take from taxpayers. Republicans want to be responsible in how they spend taxpayer money, whereas Democrats want to waste it so they can feel generous and preen in front of crowds about how generous they are. But you can’t be generous with someone else’s money.

The best way to help a person who is dependent on government is not to keep them on drugs, and keep them on welfare. They need to guided out of drug use, and into a job. Forging your own success makes you happier than being dependent anyway.