But It's Not Really Pork

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According to the National Review Online, the major welfare reform of the Clinton administration (thanks to Newt Gingrich) will be undone in the stimulus bill currently making its way through Congress.  Before the welfare reform on the 1990's, the amount of welfare money a state received from the federal government was based on the number of welfare cases in that state.  Therefore, the states had no incentive to decrease their welfare rolls--it wasn't their money!   The reforms of the 1990's gave the states a fixed amount of money based on the population of the state--so that if a state reduced its welfare rolls, it still got the money, and had more money to spend on other things.  The system worked well--both the number of families on welfare and the poverty rate decreased.

According to the article, under the new stimulus bill:

"states will once again be paid a bounty for expanding their welfare rolls. As reported by Robert Rector of the Heritage Foundation, the federal government will now pay states 80 percent of the cost for each new family they sign up for welfare. That means that states will get $4 for every $1 they spend. This will leave the main welfare program, Temporary Assistance to Needy Families (TANF), with a funding mechanism similar to the one that supports Medicaid. As Brian Blase argues here, Medicaid's funding ratio, which gives states $1 to $3 for every dollar they spend, has caused state Medicaid spending to skyrocket. If Medicaid's dollar-for-dollar model has proved ruinous, Obama's new $4-to-$1 ratio for welfare will prove, in all likelihood, four times so."

There is also talk of eventually removing the work requirements that were also put in the welfare system in the 1990's.  Remember, when the government subsidizes something, you get more of it.  If you are a working American, prepare to have your wallet (and your children's and grandchildren's wallets) raided.

The stimulus bill is legislative blight.  Unless the three Republicans who have decided to support it vote against it, there is no way to stop it.  What it will do, if the Republicans can put together a conservative coalition, is give us a Republican Congress in 2010 (assuming the census figures are not rigged--see prior stories).  The fact that the phone calls on Capital Hill are running strongly against this bill does not seem to matter--many of our current representatives are not representing us!

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This page contains a single entry by Granny G published on February 12, 2009 5:29 AM.

Louisiana Governor Bobby Jindal Will Address America After Presdent Obama's Speech On February 24 was the previous entry in this blog.

Fiscal Irresponsibility As A Worldwide Problem is the next entry in this blog.

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