K.S. Rajan (28
Jan 2012)
"Is
President Obama Creating A Nation Of Dependents?"
Is President Obama Creating A Nation Of Dependents?
By JOHN MERLINE, INVESTOR'S BUSINESS DAILY Posted 01/26/2012
08:05 AM ET
Is President Obama Creating A Nation Of Dependents?
If the Republican primaries are any indication, one big debate
in the upcoming election will be whether President Obama is
pushing the country toward a European-style welfare culture.
Mitt Romney, for example, argues that "over the past three
years, Barack Obama has been replacing our merit-based society
with an entitlement society."
Newt Gingrich has taken to calling Obama "the best food-stamp
president in American history."
Obama, in contrast, says the government must play an increasing
role — what he likes to call "shared responsibility" — to ensure
a society that is fairer. So is Obama turning the country into a
welfare society and away from one focused on opportunity?
While it's true that the country has been headed in this
direction for many years — with the explosion in entitlements
since the 1960s and the aging of the population — Obama has, in
fact, greatly accelerated the trend. Examples:
Direct payments. The amount of money the federal government
hands out in direct payments to individuals steadily increased
over the past four decades, but shot up under Obama, climbing by
almost $600 billion — a 32% increase — in his first three years.
And Obama's last budget called for these payments to climb
another $500 billion by 2016, at which point they would account
for fully two-thirds of all federal spending.
People getting benefits. According to the Census Bureau 49% now
live in homes where at least one person gets a federal benefit —
Social Security, workers comp, unemployment, subsidized housing,
and the like. That's up from 44% the year before Obama took
office, and way up from 1983, when fewer than a third were
government beneficiaries.
Food stamps. This year, more than 46 million (15% of all
Americans) will get food stamps. That's 45% higher than when
Obama took office, and twice as high as the average for the
previous 40 years. This surge was driven in part by the
recession, but also because Obama boosted the benefit amount as
part of his stimulus plan.
Disability. The number of people on Social Security disability
has steadily climbed since the 1970s, thanks mainly to easier
eligibility rules. But their numbers jumped 10% in Obama's first
two years in office, according to the Social Security
Administration. That sharp rise was due largely to meager job
prospects since the recession ended in 2009. When employment
opportunities are scarce, experts note, many who could otherwise
work sign up for disability benefits instead. source - Investors