Monday, December 10, 2012

Welfare spending versus typical family budget.

A while back I mentioned that if you added up the money spent on by welfare programs and divided it by the number of household classified as living in poverty it would come to over $60,000 per household.

Another way of looking at is the amount spent per day on households in poverty is $168 versus $137 spent by the median income family.  And of course the $168 amount isn't taxed.

Most poor families don't receive $168 a day.  A significant amount of that is eaten up by government bureaucracy which shows what happens when the government attempts to take over an activity outside it's area of competency.
The amount of money spent on welfare programs equals, when converted to cash payments, about "$168 per day for every household in poverty," the minority side of the Senate Budget Committee finds. Here's a chart detailing the committee's findings:

According to the Republican side of the Senate Budget Committee, welfare spending per day per household in poverty is $168, which is higher than the $137 median income per day. When broken down per hour, welfare spending per hour per household in poverty is $30.60, which is higher than the $25.03 median income per hour.
"Based on data from the Congressional Research Service, cumulative spending on means-tested federal welfare programs, if converted into cash, would equal $167.65 per day per household living below the poverty level," writes the minority side of the Senate Budget Committee. "By comparison, the median household income in 2011 of $50,054 equals $137.13 per day. Additionally, spending on federal welfare benefits, if converted into cash payments, equals enough to provide $30.60 per hour, 40 hours per week, to each household living below poverty. The median household hourly wage is $25.03. After accounting for federal taxes, the median hourly wage drops to between $21.50 and $23.45, depending on a household’s deductions and filing status. State and local taxes further reduce the median household’s hourly earnings. By contrast, welfare benefits are not taxed."
The problem with the whole welfare, poverty debate is suggesting that welfare spending needs to be cut, results in immediate bludgeoning for being insensitive and not caring about the poor.  However, if this area of spending is not tackled, the cutbacks later maybe even more significant.  The above information is important because it points out the current spending levels suggest a socialism (equalization of incomes) versus truly helping the destitute and vulnerable goal.

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