Kevin Price
The US is taxing wealth as it subsidized poverty
FacebookTwitter
By Kevin Price
November 22, 2010

The party and President "for the poor" seems committed to make sure there are more people in poverty. The Census Bureau is about to release its figures for 2009 and demographers and other policy experts are expecting some very grim numbers. In fact, the poverty levels are expected to hit levels we have not seen since the 1960s. The 1960s brought on the "War on Poverty" — the government's effort to help the poor through government subsidies (AFDC, food stamps, etc.).

According to the Census Bureau, in 1964, when the Office of Economic Opportunity was created, the number of people below poverty level was approximately 27 million. After decades of subsidizing poverty, levels reached around 40 million by the early 1990s or 15 percent of the population, which were the highest levels since the government programs on poverty began. This led to then President Bill Clinton to announce in 1995 that he intended to "end welfare as we know it." With the help of a Republican Congress, Clinton passed sweeping legislation that reduced the amount of time people could be on many government programs. Within five years poverty plummeted from the recent high of 40 million below poverty level to slightly above 30 million.

After the elections of 2008, the Obama Administration made it clear that it was committed to returning to an approach to poverty that we had not seen since before the welfare reform of the 1990s. The massive bailouts of 2009 required the states to increase welfare levels in both dollars and length of time individuals would be allowed to be on such programs, if they were to receive federal dollars. Now, many Americans have been on unemployment benefits for 99 weeks. As a result, the subsidy of poverty (therefore its encouragement) is at an all time high, while the US is about to face the largest tax increase in US history on January 1, 2011. This is creating a perfect storm of massive subsidies on poverty and huge tax increases on job creation.

The Associated Press reports that the new Census Bureau study will show "the number of people in the U.S. who are in poverty is on track for a record increase on President Barack Obama's watch, with the ranks of working-age poor approaching 1960s levels." It goes on to note that "It's unfortunate timing for Obama and his party just seven weeks before important elections when control of Congress is at stake. The anticipated poverty rate increase — from 13.2 percent to about 15 percent — would be another blow to Democrats struggling to persuade voters to keep them in power." These numbers join the highest unemployment numbers in three decades.

The 1994 elections became a referendum on Bill Clinton's economic policies and led to sweeping welfare reform. It will be interesting to see what kind of impact the 2010 elections will have on Barack Obama's approach to governing.

© Kevin Price

 

The views expressed by RenewAmerica columnists are their own and do not necessarily reflect the position of RenewAmerica or its affiliates.
(See RenewAmerica's publishing standards.)

Click to enlarge

Kevin Price

Kevin Price is Publisher and Editor in Chief of www.USDailyReview.com

His background is eclectic and includes years of experience in both business and public policy, as well as two decades of experience in broadcast journalism. He was an aide to U.S. Senator Gordon Humphrey (R-NH) and later went on to work in policy areas with some of the nation's leading think tanks including the National Center for Public Policy Research and was part of the Heritage Foundation's Annual Guide to Public Policy Experts... (more)

Subscribe

Receive future articles by Kevin Price: Click here

More by this author

 

Stephen Stone
HAPPY EASTER: A message to all who love our country and want to help save it

Stephen Stone
The most egregious lies Evan McMullin and the media have told about Sen. Mike Lee

Siena Hoefling
Protect the Children: Update with VIDEO

Stephen Stone
FLASHBACK to 2020: Dems' fake claim that Trump and Utah congressional hopeful Burgess Owens want 'renewed nuclear testing' blows up when examined

Cliff Kincaid
The CIA loses faith in Kamala

Desmond McGrath
Are you ready for Guy Fawkes night Nov. 5th?

Michael Bresciani
Too Late for "he said, she said" – Kamala and her liberal cadre must now drag their horrific record across the finish

Madeline Crabb
Important spiritual warning about Election 2024

Frank Louis
Okay, I get it. There’s a lot going on, a lot that’s gone on…None-the-less

Cherie Zaslawsky
The tide has turned: Kamala sinking like a lead balloon; Trump taking off like a rocket!

Curtis Dahlgren
What's really at stake: freedom of the individual versus Collectivism

Frank Louis
Leaked passwords, burning ballot boxes, added apostrophes: What next? Oh yeah… that too.

Madeline Crabb
Election consequences – What if this one is the last?

Jerry Newcombe
What’s at stake in the current election?

Linda Goudsmit
CHAPTER 45: Every Conspiracy Begins with a Theory

Pete Riehm
This is why Alabama can't have nice things
  More columns

Cartoons


Click for full cartoon
More cartoons

Columnists

Matt C. Abbott
Chris Adamo
Russ J. Alan
Bonnie Alba
Chuck Baldwin
Kevin J. Banet
J. Matt Barber
Fr. Tom Bartolomeo
. . .
[See more]

Sister sites