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SGM Metals: Govt. Welfare Program Expense Jumps Almost 400% Over 3 Decades!

As more people are praising Obama for endless govt. assistance in these trying times, the burden for helping everyone is becoming glaringly obvious. Over 3 decades the burden of govt. handouts has elevated almost 400% in the past 3 decades alone.

 
 
If 50% of the people are collecting govt. assistance, the rest are paying for it
If 50% of the people are collecting govt. assistance, the rest are paying for it
Oct. 22, 2012 - PRLog -- Dailycaller.com reports: [ The government spent approximately $1,030,000,000,000.00 ($1.03 trillion) on 83 means-tested federal welfare programs in fiscal year 2011 alone — a price tag that makes welfare that year the government’s largest expenditure, according to new data released by the Republican side of the Senate Budget Committee.

The total sum taxpayers spent on federal welfare programs was derived from a new Congressional Research Service (CRS) report on federal welfare spending — which topped out at $745.84 billion for fiscal year 2011 — combined with an analysis from the Republican Senate Budget Committee staff of state spending on federal welfare programs (based on “The Oxford Handbook of State and Local Government Finance”), which reached $282.7 billion in fiscal year 2011.

The data excludes spending on Social Security, Medicare, means-tested health care for veterans without service-connected disabilities, & the means-tested veterans pension program.

According to the CRS report, which focused solely on federal spending for federal welfare programs, spending on federal welfare programs increased $563.413 billion in fiscal year 2008 to $745.84 billion in fiscal year 2011 — a 32% increase.

Further, spending on the 10 largest federal welfare programs has doubled as a share of the federal budget in the last 30 years: In inflation-adjusted dollars the amount spent on these programs has increased 378 percent (378%)in that 30 year time frame.

CRS reports that food assistance programs — the 3rd largest welfare category behind health & cash assistance — experienced the greatest increase in spending, with 71% more spending in 2011 than in 2008. The agency explained that this spending increase was largely due to the growth in SNAP, or food stamps.

CRS further noted that the largest expenditure category, health, was 37% higher in fiscal year 2011 than fiscal year 2008. In that same period, cash aid increased 12%, education assistance increased 57%, housing & development assistance increased 2%, social services increased 3%, employment & training remained the same (though fluctuated in intervening years), & energy assistance was 67% higher in fiscal year 2011 than fiscal year 2008.

The total federal spending on federal welfare programs vastly outpaced fiscal year 2011 spending on such federal expenditures as non-war defense ($540 billion), Social Security ($725 billion), Medicare ($480 billion), & departments such as Justice ($30.5 billion), Transportation ($77.3 billion) & Education ($65.486 billion) — a fact that alarmed the ranking member of the Senate Budget Committee, Alabama Sen. Jeff Sessions, who requested the report from CRS. ]

***Spending on the 10 largest federal welfare programs has DOUBLED as a share of the federal budget in the past 3 decades! The amount spent on these programs has increased 378% over those 30 years!***

How on earth can we economically continue down this path when during this same time period the federal govt. has been working feverishly to de-industrialize America by permitting & encouraging the outsourcing of US manufacturing jobs (by offering tax breaks) which only restricts the amount of federal taxes that can be collected? If you are collecting less income as a charitable individual would you be able to expand your donations to more organizations all while increasing the amounts you have given to the usual charities? So how is there a different set of economic rules that apply to govt than to every other person on the planet? There isn’t! Well there kind of is, in that the US govt. can call on the FED to simply print more funny money as long as they promise the next administration will come up with a solution. So we have proof the govt. is throwing us down the rabbit hole faster than we thought but the real question is what can we do to fix it?

Unfortunately we are in an impossible scenario here where the federal govt. is all too willing to offer a handout to anyone & everyone that has run into trouble (that is what it is there for, short term assistance, not long term dependency) & it seems with the current economic trajectory there will be far more people looking to the govt. for assistance, if only for a short period of transition while they look for other employment. Couple that with the background story that has been painted by the Obama administration that the rich are dodging their tax responsibilities & short changing the pool of handouts the rest of the country is entitled to & you have a class warfare distraction tool that is being applied with devastating effect. This serves as a very effective tool to divert attention from the fact that the nation is in such bad shape that it is breaking the bank with an unprecedented level of govt. dependency. It is also a brilliant distraction from looking at the core problem which is the fact that almost 2/3 of the United States manufacturing base that made us the superpower we were in the middle of the last century has been given a free pass to move to Asia in order to exploit slave labor, leaving Americans scratching their heads as to why they can no longer find employment at home.

So the course of action chosen was not to design enticements to attract those jobs back home to America, but instead to get the nation hooked on free govt. goodies & mislead them into thinking they would get more of those goodies if the rich just did their part. So we have a class war being instigated to distract everyone’s attention from the fact that govt. created this situation to begin with while we as a nation go bankrupt trying to keep it going. The worrisome part of this is that when those checks stop coming, or the more likely scenario they keep coming but wont buy but a fraction of what they did a year ago thanks to inflation, the angry masses will be looking to lynch the rich guy who owns a car dealership or dry cleaning franchise in their neighborhoods rather than the problems daddy, the federal govt. As with everything the govt. does, this serves the short term agenda just fine but offers no real long term solution nor admits the expansion of the crisis by the short term solutions they pursued.

One would think that if the ‘political elite’ know what you & I have discovered in a mainstream news article they would look at cutting expenses in other areas in order to cover this few hundred percent jump in costs for handouts right? You would think that ending the longest war in American history that has no end in sight may be a good place to start? Or maybe not starting new wars in Syria or Iran could save us some loot to redistribute? Or maybe look at US mega corporations like Google, General Electric, Exxon & others who pay practically no taxes with a 2% total tax bracket. You now know that the FED will print the USD indefinitely moving forward & shuffle the monopoly money into their buddies banks until it magically makes the unemployment problem go away . . . how that will complete the circle I have no idea nor do I have an economic theory to justify it but that is what they are doing. Now that we know the cost of govt. welfare has jumped almost 400% & is growing by the day its safe to assume the govt. will target the middle class to fill the gap. Now would be a good time to hedge yourself against the dollar devaluation that will result from the current currency war that just shifted in to high gear & will have to be pushed into higher gears in order to cover this growing expense. Establish your “Weak Dollar Insurance Policy” in physical gold & silver bullion to offset the currency destruction & participate in the sound money debate that is going on as we speak. Inflation can morph into hyperinflation, recessions can fall into depressions, currency wars can morph into trade wars than can degrade in real wars in the right environment. Remember that it is a far better strategy to PREPARE your portfolio than to attempt to REPAIR it once the damage begins. Tick, tock.

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