{"id":548589,"date":"2021-06-01T16:36:11","date_gmt":"2021-06-01T20:36:11","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=548589"},"modified":"2021-06-01T16:36:13","modified_gmt":"2021-06-01T20:36:13","slug":"4-welfare-policies-that-hurt-the-people-they-claim-to-help","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/4-welfare-policies-that-hurt-the-people-they-claim-to-help\/","title":{"rendered":"4 Welfare Policies That Hurt The People They Claim To Help"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2F4-welfare-policies-that-hurt-the-people-they-claim-to-help%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=548589&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/06\/GettyImages-3252562.jpg?w=1200&#038;h=800&#038;ixlib=react-9.0.3\" class=\"ff-og-image-inserted\"  style=\"display:none\"><\/div>\n<p><span>President Biden\u2019s economic philosophy calls for a much larger federal government, with <\/span><span>the Biden administration <\/span><a href=\"https:\/\/joebiden.com\/build-back-better\/\"><span>intending<\/span><\/a><span>\u00a0to implement an \u201cupdated social contract that treats American workers and working families as essential at all times, not just times of crisis.\u201d This intention has manifested itself in Biden\u2019s massive proposed spending programs, including the <\/span><a href=\"https:\/\/www.dailywire.com\/news\/comparing-trump-and-bidens-covid-relief-bills\"><span>American Rescue Plan<\/span><\/a><span>, the <\/span><a href=\"https:\/\/www.dailywire.com\/news\/nonpartisan-economists-say-bidens-infrastructure-plan-will-decrease-economic-growth\"><span>American Jobs Plan<\/span><\/a><span>, the American Families Plan, and a $6 trillion federal budget.<\/span><\/p>\n<p><span>Past Democratic administrations \u2014 namely, those of Franklin Delano Roosevelt and Lyndon Johnson \u2014 likewise believed that the federal government ought to occupy itself with tackling poverty through massive increases in government spending.\u00a0<\/span><\/p>\n<p><span>History rejects the premise that federal social programs can meaningfully disrupt generational poverty over time. In fact, they often do the opposite.<\/span><\/p>\n<p><span>Here are four welfare policies that destroyed American families.<\/span><\/p>\n<h4><strong>Social Security<\/strong><\/h4>\n<p><span>The Social Security Act of 1935 enacted the distribution of retirement benefits to older Americans. However, it is funded by hefty taxes on employers and employees \u2014 a reality that tightens labor markets.\u00a0<\/span><\/p>\n<p><span>Presently, workers and their employers each <\/span><a href=\"https:\/\/www.ssa.gov\/news\/press\/factsheets\/HowAreSocialSecurity.htm\"><span>pay<\/span><\/a><span> 6.2% of wages in order to fund Social Security. As a 2010 Congressional Budget Office <\/span><a href=\"https:\/\/www.cbo.gov\/publication\/25028\"><span>report<\/span><\/a><span> described, a cut in payroll taxes would lead to a boost in employment.<\/span><\/p>\n<p><span>\u201cSome firms would hire more people because hiring would be less expensive; others would lower prices to increase sales, thus spurring production and increasing the demand for labor; still others would increase compensation for employees, which would encourage more spending,\u201d noted the report.<\/span><\/p>\n<p><span>The effects of payroll taxes are highly regressive. In other words, they tend to disproportionately harm lower-income workers.<\/span><\/p>\n<p><span>In an essay claiming that Social Security impoverishes working people, Berkshire Hathaway CEO Warren Buffett famously <\/span><a href=\"https:\/\/fee.org\/articles\/the-numbers-are-in-social-security-robs-the-working-poor\/\"><span>noted<\/span><\/a><span> that his secretaries pay more federal payroll taxes than he does: \u201cOur leaders have asked for \u2018shared sacrifice.\u2019 But when they did the asking, they spared me\u2026 what I paid was only 17.4 percent of my taxable income \u2014 and that\u2019s actually a lower percentage than was paid by any of the other 20 people in our office.\u201d<\/span><\/p>\n<h4><strong>Minimum Wage<\/strong><\/h4>\n<p><span>The Fair Labor Standards Act of 1938 implemented the first federal minimum wage \u2014 another policy that has distorted labor markets for generations.<\/span><\/p>\n<p><span>As Ben Shapiro <\/span><a href=\"https:\/\/www.dailywire.com\/news\/shapiro-debunking-the-15-minimum-wage\"><span>describes<\/span><\/a><span>, the federal minimum wage \u201cdoes not accomplish what it seeks to accomplish.\u201d Currently, the market price for labor is above the minimum wage for most workers. However, younger employees \u2014 especially teenagers \u2014 rely upon minimum wage jobs as a means to enter the job market and gain entry-level experience.<\/span><\/p>\n<p><span>Economist and philosopher Thomas Sowell notes that federal minimum wages are especially harmful toward African-Americans: \u201cIf you go back to say 1950\u2026 you find that at that time, the unemployment rate among black teenagers was a fraction of what it is today. And there certainly wasn\u2019t any less racism than there is today. What was different was that at that time the minimum wage law was a decade old. It was a decade of inflation, and the law hadn\u2019t been changed. So for all practical purposes, it didn\u2019t exist.<\/span><\/p>\n<p><span>In a paper for Cato Institute, Joseph Sabia \u2014 an economist at San Diego State University \u2014 <\/span><a href=\"https:\/\/www.cato.org\/sites\/cato.org\/files\/pubs\/pdf\/tbb_70.pdf\"><span>concurs<\/span><\/a><span> that \u201cminimum wage increases almost always fail to meet proponents\u2019 policy objectives and often hurt precisely the vulnerable populations that advocates wish to help.\u201d He concluded that \u201cit is more likely to result in making many low-skilled workers worse off,\u201d as it \u201cfails to reduce net poverty because of its adverse effects on employment and poor ability to target workers living in households below the poverty threshold.\u201d<\/span><\/p>\n<h4><strong>Food Stamps<\/strong><\/h4>\n<p><span>The Food Stamp Act of 1964 \u2014 which <\/span><a href=\"https:\/\/fns-prod.azureedge.net\/sites\/default\/files\/resource-files\/SNAPsummary-5.pdf\"><span>ballooned<\/span><\/a><span> from 2 million participants in 1965 to 40 million in 2020 \u2014 is meant to provide \u201cnutrition benefits to supplement the food budget of needy families so they can purchase healthy food and move towards self-sufficiency.\u201d<\/span><\/p>\n<p><span>One year after the legislation\u2019s passage, Daniel Patrick Moynihan \u2014 a Labor Department sociologist \u2014 released an influential report concluding that urban poverty leads to the breakdown of African-American families. President Johnson cited his report in a speech delivered at Howard University, claiming that government spending was the ultimate solution to the crisis. At the time, 25% of black children were born to parents who were not married.<\/span><\/p>\n<p><span>As former White House Office of Public Liaison deputy director Timothy Goeglein <\/span><a href=\"https:\/\/hbu.edu\/news-and-events\/2017\/02\/28\/great-society-wrought-fifty-years-later-marriage-family-poverty\/\"><span>explains<\/span><\/a><span>, the Johnson administration instead subsidized \u201csingle mothers who did not marry the fathers of their children.\u201d<\/span><\/p>\n<p><span>\u201cBy expanding the panoply of welfare state programs to Americans who were already experiencing serious stress and hardship, a series of significant problems became an unstoppable conflagration often referred to as a tangle of pathologies,\u201d wrote Goeglein. \u201cMillions of Americans were soon engulfed in permanent chaos and dysfunction. Major metropolitan areas were comprised of block upon block of victimized children, broken families, and shattered lives.\u201d<\/span><\/p>\n<h4><strong>Medicaid<\/strong><\/h4>\n<p><span>The Social Security Amendments of 1965 instituted Medicaid \u2014 a federal and state program by which disadvantaged Americans can acquire healthcare. As with food stamps, enrollment <\/span><a href=\"https:\/\/www.statista.com\/statistics\/245347\/total-medicaid-enrollment-since-1966\/\"><span>rocketed<\/span><\/a><span> in the decades after its introduction: from 4 million in 1966 to 75 million in 2019.<\/span><\/p>\n<p><span>However, an analysis from the Buckeye Institute \u2014 a free-market think tank in Ohio \u2014 revealed that \u201cfree\u201d Medicaid programs effectively <\/span><a href=\"https:\/\/www.heritage.org\/medicaid\/commentary\/medicaid-work-requirements-could-help-the-poor\"><span>cost<\/span><\/a><span> a recipient hundreds of thousands of dollars in lost wages due to nonexistent work requirements. Men lose $323,000 over their lifetimes, while women lose $212,000.\u00a0<\/span><\/p>\n<p><span>\u201cMore hours on the job translates to more wages,\u201d remarked Heritage Foundation senior fellow Doug Badger. \u201cOver the course of a lifetime, the differences in income accumulate to levels that significantly improve living standards.\u201d<\/span><\/p>\n<p><span>Indeed, the Buckeye Institute found that \u201cmost people who remain in the work force will work their way off Medicaid and experience earnings gains more similar to those who were never eligible for benefits.\u201d Nevertheless, \u201cpeople who receive income-related benefits have powerful disincentives to work.\u201d<\/span><\/p>\n<p><span>\u201cA job provides income. Too much income results in loss of benefits. These perverse incentives discourage people from pursuing the surest way to escape poverty: a job.\u201d<\/span><\/p>\n<p><i>The views expressed in this piece are the author\u2019s own and do not necessarily represent those of The Daily Wire.<\/i><\/p>\n<p><i>The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a<\/i>\u00a0<a href=\"https:\/\/www.dailywire.com\/subscribe\"><i>member<\/i><\/a><i>.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>President Biden\u2019s economic philosophy calls for a much larger federal government, with the Biden administration intending\u00a0to implement an \u201cupdated social contract that treats American workers and working families as essential &#8230;<\/p>\n","protected":false},"author":1,"featured_media":2278821,"comment_status":"close","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/06\/GettyImages-3252562.jpg?w=1200&h=800&ixlib=react-9.0.3","fifu_image_alt":"4 Welfare Policies That Hurt The People They Claim To Help","footnotes":""},"categories":[],"tags":[],"class_list":["post-548589","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/06\/GettyImages-3252562.jpg?w=1200&h=800&ixlib=react-9.0.3","fifu_image_alt":"4 Welfare Policies That Hurt The People They Claim To Help","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/548589","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=548589"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/548589\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2278821"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=548589"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=548589"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=548589"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}