Tag Archives: Walter Williams

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What is the conservative plan for taking care of the poor?

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Here’s is the Heritage Foundation explaining what conservatives would do to solve the problem of poverty.

Excerpt:

Since 1964, the U.S. has spent $15.9 trillion on means-tested welfare programs. After adjusting for inflation, welfare spending is 13 times higher today than it was in 1965. Welfare spending has grown more rapidly than Social Security, Medicare, education, and defense. And what do we have to show for these efforts? According to the Census Bureau, a record high 3.7 million Americans fell into poverty in 2009. The out-of-wedlock birthrate is now 40% and the African American out-of-wedlock birthrate is 72%. When the War on Poverty began the out-of-wedlock birthrate was just 7%.

The collapse of marriage is the root cause of child poverty in the U.S. today. It is far past time to reboot our poverty programs to promote work and encourage marriage in order to control costs and promote greater self-reliance. Among Rector’s recommendations:

  • Slowing the growth of the welfare state: Congress needs to establish reasonable fiscal constraints within the welfare system. Once the current recession ends, aggregate welfare spending should be rolled back to pre-recession levels. After this rollback has been completed, the growth of welfare spending should be capped at the rate of inflation.
  • Promoting personal responsibility and work: Able-bodied welfare recipients should be required to work or to prepare for work as a condition of receiving aid. Food stamps and housing assistance, two of the largest programs for the needy, should be aligned with the TANF program to require able-bodied adults to work or to prepare for work for a minimum of 30 hours per week.
  • Ending the welfare marriage penalty and encouraging marriage in low-income communities: Current means-tested welfare programs penalize low-income recipients who get married; these anti-marriage penalties should be reduced or eliminated.

During the administration of President Bill Clinton, conservatives successfully reformed one welfare program in the 1990s: replacing the old Aid to Families with Dependent Children (AFDC) with the new Temporary Assistance to Needy Families (TANF). But President Barack Obama’s failed economic stimulus gutted those reforms. And his budget proposal would spend $10.3 trillion on means-tested welfare over the next decade. Before the current rise in poverty, that was enough to give $250,000 to each person currently living in poverty in the U.S., or $1 million for a poor family of four. Our nation can’t afford another 10 years of failed War on Poverty thinking.

You can read more about this issue in this Townhall.com column by Walter Williams, which explains everything you need to do to avoid being poor, and to avoid making your kids poor.

Excerpt:

Avoiding long-term poverty is not rocket science. First, graduate from high school. Second, get married before you have children, and stay married. Third, work at any kind of job, even one that starts out paying the minimum wage. And, finally, avoid engaging in criminal behavior. If you graduate from high school today with a B or C average, in most places in our country there’s a low-cost or financially assisted post-high-school education program available to increase your skills.

Most jobs start with wages higher than the minimum wage, which is currently $5.15. A man and his wife, even earning the minimum wage, would earn $21,000 annually. According to the Bureau of Census, in 2003, the poverty threshold for one person was $9,393, for a two-person household it was $12,015, and for a family of four it was $18,810. Taking a minimum-wage job is no great shakes, but it produces an income higher than the Bureau of Census’ poverty threshold. Plus, having a job in the first place increases one’s prospects for a better job.

The Children’s Defense Fund and civil rights organizations frequently whine about the number of black children living in poverty. In 1999, the Bureau of the Census reported that 33.1 percent of black children lived in poverty compared with 13.5 percent of white children. It turns out that race per se has little to do with the difference. Instead, it’s welfare and single parenthood. When black children are compared to white children living in identical circumstances, mainly in a two-parent household, both children will have the same probability of being poor.

Here’s more Walter Williams: (2 minutes)

And some Thomas Sowell: (4.5 minutes)

Walter Williams and Thomas Sowell are my two favorite economists.

Commentary

Walter Williams on the best place to be poor in the world

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Walter Williams

His latest column is here.

Excerpt:

Imagine you are an unborn spirit whom God has condemned to a life of poverty but has permitted to choose the nation in which to live. I’m betting that most any such condemned unborn spirit would choose the United States. Why? What has historically been defined as poverty, nationally or internationally, no longer exists in the U.S. Let’s look at it.

And here’s what he finds:

— Forty-three percent of all poor households actually own their own homes. The average home owned by persons classified as poor by the Census Bureau is a three-bedroom house with one-and-a-half baths, a garage and a porch or patio.

— Eighty percent of poor households have air conditioning. By contrast, in 1970, only 36 percent of the entire U.S. population enjoyed air conditioning.

— The typical poor American has more living space than the average individual living in Paris, London, Vienna, Athens and other cities throughout Europe. (These comparisons are to the average citizens in foreign countries, not to those classified as poor.)

— Nearly three-quarters of poor households own a car; 31 percent own two or more cars.

— Ninety-seven percent of poor households have a color television; over half own two or more color televisions.

— Seventy-eight percent have a VCR or DVD player; 62 percent have cable or satellite TV reception.

— Eighty-nine percent own microwave ovens, more than half have a stereo, and a more than a third have an automatic dishwasher.

And he concludes:

Yesterday’s material poverty is all but gone. In all too many cases, it has been replaced by a more debilitating kind of poverty — behavioral poverty or poverty of the spirit. This kind of poverty refers to conduct and values that prevent the development of healthy families, work ethic and self-sufficiency. The absence of these values virtually guarantees pathological lifestyles that include: drug and alcohol addiction, crime, violence, incarceration, illegitimacy, single-parent households, dependency and erosion of work ethic. Poverty of the spirit is a direct result of the perverse incentives created by some of our efforts to address material poverty.

Instead of exporting foreign aid to poor nations, we should be investing and trading with them to encourage them to start businesses and hire people. We should also be exporting our Judeo-Chrsitian values and our economic/political views, e.g. – private property, capitalism, the Constitution, federalism,the rule of law, etc. Knowledge and good character are solutions to the problem of poverty – not wealth redistribution.

Walter Williams is my #2 favorite economist.

Commentary

Walter Williams advocates a return to federalism

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Walter Williams

A popular editorial from Investors Business Daily.

Here is the question he wants to answer:

If one group of people prefers government control and management of people’s lives and another prefers liberty and a desire to be left alone, should they be required to fight, antagonize one another, risk bloodshed and loss of life in order to impose their preferences or should they be able to peaceably part company and go their separate ways?

The problem is that the federal government is not supposed to tell the states what to do. Every state is supposed to decide how much to tax and what government programs to spend on for themselves.

He continues:

Article I, Section 8 of our Constitution lists the activities for which Congress is authorized to tax and spend. Nowhere on that list is authority for Congress to tax and spend for: prescription drugs, Social Security, public education, farm subsidies, bank and business bailouts, food stamps and other activities that represent roughly two-thirds of the federal budget.

[…]James Madison, the acknowledged father of the Constitution, explained in Federalist Paper No. 45: “The powers delegated by the proposed Constitution to the federal government are few and defined. Those which are to remain in the State governments are numerous and indefinite. The former will be exercised principally on external objects, as war, peace, negotiation, and foreign commerce.

Williams ends by hoping for a restoration of respect for the Constitution. That would mean that the Democrats, (the party that advocates top-down control of other people’s lives), would have to be voted out of power.

Walter Williams is my second favorite living economist. Thomas Sowell is still number one, and he has the most popular post on National Review right now.