How Much Does It Cost?

The following chart was posted at The Washington Examiner today:

Although I object to the word ‘native’ being used in this context, the chart shows that a large portion of our tax money is going to people who are not American citizens. The real problem with this is that veterans and other Americans are not getting the services they need because money is limited and our national debt is skyrocketing. Supporting people who are here illegally is simply a luxury we can no longer afford.

The article further states:

  • In 2014, 63 percent of households headed by a non-citizen reported that they used at least one welfare program, compared to 35 percent of native-headed households.
  • Welfare use drops to 58 percent for non-citizen households and 30 percent for native households if cash payments from the Earned Income Tax Credit are not counted as welfare. EITC recipients pay no federal income tax. Like other welfare, the EITC is a means-tested, anti-poverty program, but unlike other programs one has to work to receive it.
  • Compared to native households, non-citizen households have much higher use of food programs (45 percent vs. 21 percent for natives) and Medicaid (50 percent vs. 23 percent for natives).
  • Including the EITC, 31 percent of non-citizen-headed households receive cash welfare, compared to 19 percent of native households. If the EITC is not included, then cash receipt by non-citizen households is slightly lower than natives (6 percent vs. 8 percent).
  • While most new legal immigrants (green card holders) are barred from most welfare programs, as are illegal immigrants and temporary visitors, these provisions have only a modest impact on non-citizen household use rates because: 1) most legal immigrants have been in the country long enough to qualify; 2) the bar does not apply to all programs, nor does it always apply to non-citizen children; 3) some states provide welfare to new immigrants on their own; and, most importantly, 4) non-citizens (including illegal immigrants) can receive benefits on behalf of their U.S.-born children who are awarded U.S. citizenship and full welfare eligibility at birth.

I am reminded of the line from the movie “Men In Black,” “We’re not hosting an intergalactic kegger down here.” We can do everything we can to help people in poor countries, but we need to understand that until those countries have some form of economic freedom, our aid simply goes to the corrupt officials at the top. The answer to the number of illegals coming to America is for those illegals to gather together to fight the corrupt governments in their own countries. Based on the fact that the large majority of the people currently trying to break into America are military-age men, we need to ask them to go back home and work to fix things. We simply cannot afford to taken in everyone in the world who is looking for a better life. At some point you simply cannot put any more people on the bus.

The Consequences Of Not Understanding Economics

I am not an authority on economics. I am, however, a person who watches what goes on around me and sometimes learns lessons from what I see. Some economic principles are obvious enough to be learned that way.

In 2013, Forbes Magazine posted an article quoting a statement by then-President Obama on the subject of economic freedom. Economic freedom was not something President Obama believed in. President Obama acted on his belief that economic freedom was not a good thing, and the American economy suffered during his presidency.

The article quotes a speech President Obama gave in Kansas:

there is a certain crowd in Washington who, for the last few decades, have said, let’s respond to this economic challenge with the same old tune. “The market will take care of everything,” they tell us. If we just cut more regulations and cut more taxes–especially for the wealthy–our economy will grow stronger. Sure, they say, there will be winners and losers. But if the winners do really well, then jobs and prosperity will eventually trickle down to everybody else. And, they argue, even if prosperity doesn’t trickle down, well, that’s the price of liberty.

Now, it’s a simple theory. And we have to admit, it’s one that speaks to our rugged individualism and our healthy skepticism of too much government. That’s in America’s DNA. And that theory fits well on a bumper sticker. (Laughter.) But here’s the problem: It doesn’t work. It has never worked. (Applause.) It didn’t work when it was tried in the decade before the Great Depression. It’s not what led to the incredible postwar booms of the ’50s and ’60s. And it didn’t work when we tried it during the last decade. (Applause.) I mean, understand, it’s not as if we haven’t tried this theory.

Well, have we tried this theory? A little history is in order here.

The article reminds us:

I pick 100 years deliberately, because it was exactly 100 years ago that a gigantic anti-capitalist measure was put into effect: the Federal Reserve System. For 100 years, government, not the free market, has controlled money and banking. How’s that worked out? How’s the value of the dollar held up since 1913? Is it worth one-fiftieth of its value then or only one one-hundredth? You be the judge. How did the dollar hold up over the 100 years before this government take-over of money and banking? It actually gained slightly in value.

Laissez-faire hasn’t existed since the Sherman Antitrust Act of 1890. That was the first of a plethora of government crimes against the free market.

…Obama absurdly suggests that timid, half-hearted, compromisers, like George W. Bush, installed laissez-faire capitalism–on the grounds that they tinkered with one or two regulations (Glass-Steagall) and marginal tax rates–while blanking out the fact that under the Bush administration, government spending ballooned, growing much faster than under Clinton, and 50,000 new regulations were added to the Federal Register.

The philosophy of individualism and the politics of laissez-faire would mean government spending of about one-tenth its present level. It would also mean an end to all regulatory agencies: no SEC, FDA, NLRB, FAA, OSHA, EPA, FTC, ATF, CFTC, FHA, FCC–to name just some of the better known of the 430 agencies listed in the federal register.

Even you, dear reader, are probably wondering how on earth anyone could challenge things like Social Security, government schools, and the FDA. But that’s not the point. The point is: these statist, anti-capitalist programs exist and have existed for about a century. The point is: Obama is pretending that the Progressive Era, the New Deal, and the Great Society were repealed, so that he can blame the financial crisis on capitalism. He’s pretending that George Bush was George Washington.

Please follow the link to read the entire article. It accidentally explains the reasons the economy has prospered under President Trump. I also strongly recommend reading The Creature From Jekyll Island by G. Edward Griffin for the story behind the creation of the Federal Reserve System.

 

 

Proof That Economic Policies Matter

The Cato Institute posts a report on freedom in each of the fifty states. The link posted here will send you to the North Carolina report, but you can get to information on any state from that link. I am focusing on North Carolina because it so beautifully illustrates the idea that economic policies matter.

This is the write up on North Carolina:

North Carolina is a rapidly growing southern state with a reasonably good economic freedom profile and an even better record on personal freedom, especially when compared with its neighbors.

North Carolina gradually improved its fiscal policies from 2011 to 2016. State taxes fell from 6.2 percent of adjusted personal income to a projected 5.7 percent, right around the national average. Local taxes have held steady over that period at 3.3 percent of income, seven-tenths of a percentage point below the national average. Debt and government consumption and employment fell, but so did financial assets.

Despite large inmigration, North Carolina has disdained excessive controls on the housing supply. Eminent domain was never effectively reformed. Labor law is good, with no minimum wage, a right-to-work law, and relatively relaxed workers’ compensation rules, but an E-Verify mandate was enacted in 2011. Regulation has killed off the managed care model for non-large-group health insurance. Cable and telecommunications have been liberalized. Occupational freedom is a weak spot, especially for the health professions. A sunrise review requirement for occupational licensing proposals was scrapped in 2011. North Carolina is one of the worst states for insurance freedom. It has a large residual market for personal automobile and homeowner’s insurance because of strict price controls and rate classification prohibitions. It also has a price-gouging law and a minimum-markup law for gasoline. Entry is restricted for medical facilities and moving companies. North Carolina’s civil liability system has improved over time and is now about average.

North Carolina has one of the best criminal justice regimes in the South. Incarceration and victimless crime arrest rates are all below average. There is no state-level civil asset forfeiture, but local law enforcement frequently does an end-run around the law through the Department of Justice’s equitable sharing program. Gun rights are more restricted than in many other southern states, with carry licenses somewhat costly to obtain and hedged with limitations. Plus, buying a pistol requires a permit, there is local dealer licensing, background checks are required for private sales, and most Class III weapons are difficult to obtain (sound suppressors were legalized in 2014). Alcohol freedom is mediocre because of state liquor stores and somewhat high markups and taxes. Marijuana has not been liberalized apart from a 1970s-era decriminalization law. Gambling freedom is quite low. School choice was introduced in 2014, but only for students with disabilities. Tobacco freedom is about average because of reasonable taxes and workplace freedom (but not freedom in bars or restaurants).

The information also includes:

Note that the article says that North Carolina gradually improved its fiscal policies between 2011 and 2016. So what happened in 2011–the Republican party took over the legislature after 140 years of North Carolina being a one-party state (Democrat). The Republicans in the legislature have continued to cut taxes and cut spending. Those economic policies have brought people to the state and improved the economic position of the state. Economic policies matter.

Elections Have Consequences

One of the things to keep in mind as you prepare to vote in your state’s primary election is that elections have consequences. The Daily Signal posted an article today about the decline in economic freedom during the Obama Administration. The Heritage Foundation posted a more complete article.

The Heritage Foundation reports:

According to the 2016 Index of Economic Freedom, an annual publication by The Heritage Foundation, America’s economic freedom has tumbled. With losses of economic freedom in eight of the past nine years, the U.S. has tied its worst score ever, wiping out a decade of progress.

The U.S. has fallen from the 6th freest economy in the world, when President Barack Obama took office, to 11th place in 2016. America’s declining score in the index is closely related to rapidly rising government spending, subsidies, and bailouts.

Economic freedom creates prosperity across the board. Without economic freedom there is no incentive to achieve. When there are no rewards for achievement, there is less achievement.

The Heritage Foundation reports:

Since early 2009:

  • Government spending has exploded, amounting to $29,867 per household in 2015.
  • The national debt has risen to $125,000 for every tax-filing household in America—a total over $18 trillion.
  • The government takeover of health care is raising prices and disrupting markets.
  • Bailouts and new government regulations have increased uncertainty, stifling investment and job creation.

This is not something to take lightly. Economic freedom is the foundation of U.S. economic strength, and economic strength is the foundation of America’s high living standards, military power, and status as a world leader. The perils of losing economic freedom are not fictional.

This is something to consider as you cast your primary ballot, regardless of which political party you belong to. Economic freedom matters–to you, to your children, and to your grandchildren.

Why Leadership Matters

Yesterday Hot Air posted an article about the loss of economic freedom in America.

The article reports:

For going on 20 years now, the Heritage Foundation and the Wall Street Journal have been putting together an annual Index of Economic Freedom by evaluating countries the world over based on ten criteria along the lines of property rights, government spending, freedom from corruption, trade freedom, and the like. They released the 2014 edition of their annaul Index today, and here’s the good news: Worldwide economic freedom has reached record levels, huzzah! The various governments of 114 countries took steps in 2013 that increased their citizens’ economic freedom, and 43 countries all over the world have now reached their highest ranking in the Index’s history. Awesome, right?

But, here’s the bad news: The United States is no longer among the relative elite of these economically free nations. Oof.

What happened? The article points out that a tax rate exceeding 43% cannot even keep pace with the government’s runaway spending. The article also cites the problem of over-regulation by the government which impacts economic and personal freedom.

The article concludes:

As I mentioned earlier today, the Obama administration is currently prepping for the president’s fifth State of the Union address by touting all the sweet executive actions they’ve freshly come up with to spur along the economy should Congress fail to act on their legislative proposals. Yet again, however, the Obama administration’s ideas all seem to center around ways to spend more taxpayer money, increase top-down federal intervention, and layer the regulations on even more thickly — i.e., take our economic freedom even further down the drain — and their only regret seems to be that this spitefully obstructionist ‘Republican’ Congress of ours hasn’t permitted them to do even more of the same.

Leadership matters.

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The Index Of Economic Freedom

John Hinderaker at Power Line reported on Saturday that the Heritage Foundation has released its annual Index of Economic Freedom. This is the chart of Economic Freedom in the United States in recent years:

This is not a good thing. The United States has slipped to tenth place in the world ranking of economic freedom. We can probably stop the decline by electing different people to Congress and the White House. Please keep this chart in mind when you decide how you are going to vote.

 

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