Tag Archives: Welfare

What is the “root cause” of poverty and inequalities of wealth?

The Heritage Foundation explains – it’s not what you think.

Excerpt:

New data released today by the U.S. Census Bureau show the largest increase in poverty in U.S. recorded history. Under President Obama’s watch, an additional 3.7 million Americans fell into poverty in 2009.

Buried in the Census report are startling figures revealing the principal cause of child poverty: the collapse of marriage. Single mother families are almost five times more likely to be poor than are married couples with children; overall, nearly 70 percent of poor families with children are headed by single parents.

The big secret in the Census report is that marriage is America’s number-one weapon against child poverty. But marriage has been rapidly declining in our society as the number of women who have children without being married has skyrocketed.

Historically, unwed childbearing was rare. In 1964, when the federal government launched its War on Poverty, 6.8 percent of births were to single mothers. Today, the unwed birth rate has soared to 40 percent: four of every 10 births are to a single mother. For Hispanics and African Americans, it’s significantly higher.

This trend is extremely detrimental for society. When compared to children raised by married parents, children raised by single parents are more likely to have emotional and behavioral problems; be physically abused; smoke, drink, and use drugs; be aggressive; engage in violent delinquent and criminal behavior; have poor school performance; and drop out of school.

Contrary to conventional wisdom, nearly all unwed fathers are employed, and most earn enough to lift mother and child from poverty. Tragically, however, few unwed parents marry.

Many commentators will say teen pregnancy accounts for most single motherhood, but this is false. Less than 8 percent of new single moms are under 18. In fact, most unwed births are to young adult women in their 20s. The majority of unwed moms don’t have much education; most end up on welfare.

If Americans are serious about reducing poverty and getting control of federal welfare spending, we must strengthen marriage. We can do this in several ways, beginning with reducing anti-marriage penalties currently in welfare programs and providing factual information to low-income communities about the benefits of marriage.

Do you know who is pretty good on this issue? Maggie Gallagher, that’s who. She knows everything about why people should get married.

Excerpt:

5. YOU WILL EARN MORE MONEY. Men today tend to think of marriage as a consumption item—a financial burden. But a broad and deep body of scientific literature suggests that for men especially, marriage is a productive institution—as important as education in boosting a man’s earnings. In fact, getting a wife may increase an American male’s salary by about as much as a college education. Married men make, by some estimates, as much as 40 percent more money than comparable single guys, even after controlling for education and job history. The longer a man stays married, the higher the marriage premium he receives. Wives’ earnings also benefit from marriage, but they decline when motherhood enters the picture. Childless white wives get a marriage wage premium of 4 percent, and black wives earn 10 percent more than comparable single women.

6. DID I MENTION YOU’LL GET MUCH RICHER? Married people not only make more money, they manage money better and build more wealth together than either would alone. At identical income levels, for example, married people are less likely to report “economic hardship” or trouble paying basic bills. The longer you stay married, the more assets you build; by contrast, length of cohabitation has no relationship to wealth accumulation. On the verge of retirement, the average married couple has accumulated assets worth about $410,000, compared with $167,000 for the never-married and $154,000 for the divorced. Couples who stayed married in one study saw their assets increase twice as fast as those who had remained divorced over a five-year period.

Yet another reason for fiscal conservatives to take social conservatives seriously. Marriage makes people more independent, and that means smaller government, lower taxes, and more liberty. What we need to do is block feminists from undermining marriage to serve their gender-neutral ideology, and stop socialists from undermining marriage with the welfare programs which incentivize single motherhood.

Does government dependency make people happier and more moral?

Here’s a funny story in the UK Daily Mail. (H/T The Blog Prof)

Excerpt:

A jobless couple rake in £95,000 in state benefits a year – and even have breakfast delivered to the door each morning, courtesy of the taxpayer.

The money – five times the starting salary of a teacher – goes to unemployed Pete and Sam Smith and their ten children, who live in a rentfree four-bedroom house.

[…]The Smiths were moved last month by the local authority from a house in Bath, which the landlord accused them of wrecking, to the large house in the Bristol suburb of Kingswood.

But Mrs Smith, 36, complained that the house was too small, the breakfast portions too stingy and said she could afford to buy her brood only one Nintendo Wii games console between them.

She claims she is also forced to pay £100 a week to keep her five cats in a cattery.

‘It’s very cramped here,’ she told the News of the World. ‘We’ve been told we might not be given a new house for another nine months, which is ridiculous.

‘The breakfast supplied by the council isn’t like proper hot food. It’s usually eggs, beans, tinned tomatoes and cereal, which isn’t really enough for us all and we have to heat it up ourselves.’

[…]Mrs Smith receives up to £140-a-week child benefits for her children aged from four months to 14 years.

The family also get disability living allowance, carer’s allowance, tax credits and income support.

The total with child benefits is £44,954. They then receive a £950-aweek bed-and-breakfast deal where the council pays for breakfasts delivered to their home, which comes to £49,400 – a total of £94,354 a year.

You may want to read this Arthur Brooks column that argues that it isn’t money that makes people happy – it’s the freedom to work, save and spend how you please. Arthur Brooks is the same guy who previously wrote a book showing that those who oppose redistribution of wealth give far more in charity than than those who support it. You can read about that in this article.

What does universal health care really mean?

I think the point of universal health care (at least the government-run variety) is pretty clear. The goal is to equalize life outcomes so that people who work the hardest pay the most into the system, and people who live in risky/immoral lifestyles withdraw the most. The biggest losers in such a system are the productive people who make responsible, moral decisions about their lifestyle – they pay the most and withdraw the least. The biggest winners are people who don’t work at all but who withdraw a lot.

I think that universal health care makes people irresponsible. The driving force behind universal health care is the idea that people should be able to do anything they want to pursue happiness any way they please, and that the natural limits of reality should be circumvented by spending other people’s money to “equalize life outcomes”.

Socialized medicine proponents are funny people. They think that no one should have to deal with the costs of their own decisions as long as they are sincere in their pursuit of happiness – it’s just not possible to predict what decisions will lead to good outcomes and what decisions will lead to bad outcomes. I once had two Canadian women bragging to me in an airport about how great socialized medicine was until I explained to them that at my salary level I would be paying 50% of my salary to the government and I had not been to the doctor for anything other than a check-up in my entire life. They could not see why I might like to opt out of such a system even after I explained it to them. They apparently thought that at any moment I might develop the urge for an abortion or two and then who would pay for it? Life is so unpredictable for a Canadian woman – it’s better not to have to worry about it and just let someone else pay.

So, let’s see what passes for health care in various universal health care systems around the world.

  • Here’s my previous post on taxpayer-funded in vitro fertilization in Ontario, Canada. It’s a human right! And that means it’s FREEEEEE!
  • But there’s more. Sex-changes are also a human right in Ontario, Canada. It’s FREEEEEE! The taxpayer has loads of money for that.
  • Do you know what else is FREEEEEE! in socialist countries like the UK? Breast enlargements. Yeah, because it’s a human right!

And of course it goes without saying that abortion is a human right everywhere, and should be taxpayer-funded. It really is about playing on people’s fears, and buying votes with other people’s money. The reason that the socialists don’t want health care to be left to private companies instead of government is because private companies would insist that people pay based on their likelihood of filing a claim – as with car insurance. But that is too “judgmental” for the universal health care proponents – they think that no one should feel obligated to behave responsibly just because of petty things like money.

I wonder what my readers think about this.

Is it OK for some citizens to make decisions that are costly and risky as they pursue happiness in non-standard ways, and then assign blame and costs for the inevitable failures and expenses to their neighbors? Is there a right to pursue happiness at the expense of others? Is life predictable enough that people should be able to rationally assess the costs and risks of their own decisions? Would private insurers do a better job of holding people accountable to make good decisions about their own lifestyles? Should people choose how much health care they want based on the coverages they want and the risks they want to incur? Should a person be able to say that they don’t want to be covered for sex changes and have the amount they pay into the system reduced? Should a person be able to opt out of government health care entirely and just buy a medical insurance policy privately, based on their own needs?