US Government Transfers & The Permanent Underclass

US Government Transfers & The Permanent Underclass

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Photo from John Partipllo/ americanpoverty.org

Red Pill Views received a very fine comment from Antonius Block on August 20th in which he stated; “government subsidies are one of the instruments that currently keep blacks in a modern form of bondage”.

In my reply I more or less ignored Antonius’s point and spoke of government transfer programs as a necessary medicine, (with all of their terrible side effects) of an economic system, whose legal regulatory infrastructure rewards those who have and severely punishes both, most of the middle class and the poor.

While the points I raised may have been cogent, the points Antonius raised and I didn’t respond to were cogent ones as well.

He is correct in saying that the government structural transfers in the US are designed to keep people on it and out of the labor force.

This Wall Street Journal article entitled, “Work or Welfare What Pays More”,  (that Antonius linked to) is essentially a proof of that.

http://blogs.wsj.com/economics/2013/08/19/work-or-welfare-what-pays-more/

Which truly pays more in the US, varies from State to State and maybe from county to country. But the thrust of the article is clear and sadly spot on.

It is that it’s very hard to get on many government transfer programs. There is frequently egregious levels of paper work to complete, as well as possible inspections of your living arrangements, physicians’ statements, likely long ques for section 8 housing assistance, etc., as you have to PROVE for each program that you are indeed a worthy recipient and then take your place in line.

A hard won government benefit is not going to be surrendered easily. And the total potential transfers that a poor person may be entitled to can be considerable.

As the WSJ article points out; ““In 11 States welfare pays more than the average pretax first-year wage for a teacher [in those states]. In 39 states, it pays more than the starting wage for a secretary. And, in the three most generous states a person on welfare can take home more money than an entry-level computer programmer.”

And these are pretax figures. After taxes and the expenses one incurs by getting a job, like transportation and acceptable business clothing, it is hardly worth the effort for all but the most motivated.

And if such a person were to actually put in the effort and cost to find and secure a job, if they were to be laid off afterwards, (depending on how quickly afterwards) they would frequently have to go through the whole arduous and costly process of getting their old social programs back again.

And what would they and their families live on while they fought to get their old programs back?

So social welfare in America is a recipe that creates a disincentive to work and by doing so creates a permanent dependent underclass.

And as Antonius pointed out, given the very real racism in America and the institutional attempts at breaking the back of Black America, once Afro American people are thrown into the heap of the dependent poor, it is very hard for them to escape.

Antonius gave these examples of “why Blacks in the USA are at a disadvantage”. But there are endlessly more.

1- CIA intentionally distributing crack into black neighborhoods.
2- Nixons 100:1 ratio between crack and powder cocaine – Basically, having 100 grams of a white man’s drug like cocaine would trigger the same sentence as having 1 gram of crack cocaine, a black man’s drug.
3- Bank loan discrimination http://thinkprogress.org/economy/2011/12/01/379332/former-banker-subprime-pushed/
4- Sentensing disparity between blacks and whites, leaving many young black kids fatherless. We all know nothing could possibly go wrong with that…
5- Music ideolizing violence being pushed on black communities through monopolies like the RIAA

When a country wants to offer transfers for those of its citizens who are temporarily in need, but also TRULY wants to get them back into the labor force they will do what Denmark does. That is unemployed workers are given generous amounts of help, but after a certain amount of time they MUST look for work.

The government then works as a helper- intermediary to link potential workers to businesses that need help.

If they do not have sufficient skills to get a job based on real jobs that truly exist and where employers cannot find skilled help, then an able bodied welfare recipient MUST show up to classes to get trained.

For example if you own a business and can’t find needed help the government will train an unemployed person to do the job you need done. Then for the period of on the job training, the government will pay you to train your new temporary employee and keep making transfers to the new employee as well, as he or she is learning and not yet productive.

Once the temporary period is over, you are asked whether you want to hire your new employee? When you say yes that person gets a permanent job.

The government then benefits as this person goes from being a net receiver of public funds to a tax paying worker, contributing money to maybe help a new person in the same situation he or she was in when he or she was unemployed.

And the businessperson ostensibly expands his or her business, makes more money and then pays more taxes as well.

So the money paid by the state to help both a businessman and an unemployed person acts as an investment, expanding national productivity and adding skilled labor to the country’s work force.

What the US Elites have done has been completely different. In that country today more than 50% of the people get some sort of government transfer payment. And based on a Crony Capitalist economic system Elites have created great wealth for 1% of the population and good wealth for an additional 29% who effectively serve them.

These 30% of Americans today have the best standard of living ever in the history of their country.

So 50% of Americans are dependent on their government to live, while 30% are very happy campers at least financially. They are highly unlikely to bite the hand that feeds them. This is the constituency that will ALWAYS support Democrats or Republicans, because BOTH groups have a vested interest in the system.

But even though welfare benefits when successfully stacked together can be significant, they still for the most part leave people in poverty, which unlike someone else’s starting salary has no hope for advancement attached to it.

And poor frequently, ignorant people don’t always know that they can stack benefits, nor know how to go about doing it.

Hopelessness leads to things like drug and/ or alcohol abuse, which in turn leads to weak, broken violence ridden families, which in turn leads to a culture of more hopelessness. Add racism to the mix and we have an explosive cocktail that can and will lead to social violence as well.

There really isn’t any reason not to get Americas permanent underclass back into productive labor and I might add into jobs that will give people a living wage, other than the fact that the American Elites don’t find it in their interest to do so.

Robert

As my readers will quickly see I tend to interpret the world, thanks to the late Bill Gaines in the “jugular vein”.

I don’t waste time debating or debunking propaganda. I assume my readers are smart enough to see through it, on their own. And propaganda, especially the stupid and transparent kind doesn’t need to be dignified by debate.

OK. OK sometimes I will use propaganda for a comic routine. We all have to laugh occasionally.

And finally like the Bill Gates dictum that he quoted from Wayne Gretzky, I try not to skate to the puck, but to where the puck is coming. That means I care less about news headlines than what they signify and where the underlying theme of them is likely to go.

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