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When the Welfare Checks Stop Coming

Written by Gary North on February 6, 2012

When poor people are one check away from a crisis, what will happen when the checks stop coming.

Make no mistake about it. They will stop coming. The welfare state  is going to go belly-up. There is going to be a Great Default.

The super-rich can get out. Some of them are doing this. But what about you?

It’s not just people on welfare who are at risk. It is close to half of all Americans. They are two missed paychecks from disaster. Maybe only one.

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What does it mean to be poor?

If it means living at or below the poverty line, then 15 percent of Americans — some 46 million people — qualify. But if it means living with a decent income and hardly any savings — so that one piece of bad luck, one major financial blow, could land you in serious, lasting trouble — then it’s a much larger number. In fact, it’s almost half the country.

“The resources that people have — they are using up those resources,” said Jennifer Brooks, director of state and local policy at the Corporation for Enterprise Development, a Washington, D.C., advocacy group. “They’re living off their savings. They’re at the end of their rope.”

The group issued a report today examining so-called liquid asset poverty households — the people who aren’t living below the poverty line, but don’t have enough money saved to weather a significant emergency.

According to the report, 43 percent of households in America — some 127.5 million people — are liquid-asset poor. If one of these households experiences a sudden loss of income, caused, for example, by a layoff or a medical emergency, it will fall below the poverty line within three months. People in these households simply don’t have enough cash to make it for very long in a crisis.

The findings underscore the struggles of many Americans during what has often seemed like an economic recovery in name only. While the Great Recession officially ended more than two years ago, unemployment remains high and wages have barely budged for most workers. For more people, whether they draw a paycheck or not, a life free of deprivation and financial anxiety seems perpetually out of reach.

That’s not to say that everyone who is liquid-asset poor spends all their time fretting. On the contrary, because many have regular paychecks coming in, they may not grasp the precariousness of their situation.

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Maybe you have not considered this. It’s time.

The situation is bad today. It’s going to get a lot worse.

To see how bad it already is, click the link.

Continue Reading on www.huffingtonpost.com

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12 thoughts on “When the Welfare Checks Stop Coming

  1. Lock and load, because they WILL be at your doors and we'd better be able to protect ourselves; our children and grandchildren!

  2. Working in the inner city, four decades now has shown me how well off the'poor' actually are. Half century of entitlement populations get subsidised or free housing, utilities medical care and assorted freebies in return for their votes. The liberals would be shocked at the fraud and abuse, but certainly don't want you to see any statistics.
    Before the checks stop, requirements to be eligible would be tightened, and the fingerprint/photo id the apologists scream against will be mandatory. THEN the riots will start at the welfare offices first, then 'uptown' with their representatives, then downtown with the mugging mobs.

  3. Thank You– Lyndon B Johnson and your Great Society. Between you and the democratic party and the liberal leeches of the congress this is the real problem. We have a leech in the white house and other key positions in our government. These people need to be exterminated by voting them out of office. The only one that can do anything is Newt Gingridge. He did it in the ninties when he check mated Clinton and his ignorance. Both sides are against him because they know the party is over for these thieves on both sides of the isle if he is elected. A vote for Romney is a vote for Obama the biggest thief I have ever seen.

  4. Revolution is on the way. I have predicted for years that it was coming, but never it would be this soon. The greatest country on this earth will become a third world dictatorship. The very wealthy have already started to move. The latest being Movie director James Cameron, who will be going to New Zealand. Never has our country been so close to collapse, yet people in general, seem to be OK with it.

  5. It's stunning how people who profess to be democrats are so ignorant of what's happening to our country. The parasites who are on welfare/food stamps will revolt when the money runs out, and all citizens will be affected. The dictator will be overthrown, hopefully in the next election, and democrats will whine and cry, even as their lives and the economy improve. Ignorance is the bane of conservative reform….we are constantly amazed how certain high-profile democrats display their lack of knowledge, just opening their mouths. I suppose they are prepared to protect themselves as part of the elite, and the rest of us be damned!

  6. I worked for the poverty program back in the Johnson era, during which time my politics went from "bleeding heart liberal" to somewhat right of Attila the Hun. Almost every recipient of the program that I observed was strictly out for him/herself, and cared not one whit about helping "the neighborhood", although some of their titles bordered on "neighborhood organizer." I became so thoroughly disillusioned that I moved my family out of the city to a small ranch in the country and started preparing for the coming disaster, which my late husband expected to occur much sooner than it has. We've been on the fatal road for much longer than most people realize, and I see no hope of reversing the course before it comes to outfight civil war.

  7. Way back in the late 1970's and early 80's the survivalist crowd started to blossom and become prominent . Many people thought them kooks but in hind site it seems that they weren't to far off base . Now I am not saying we should all dig into a hole in the ground bomb shelter , but perhaps we should have paid a bit more attention and gotten prepared for economic collapse . Of course this would have drive sales of firearms through the roof and Liberals and Democrats would have gone in to a state of Ballistic with more gun control regulation attempts . We can all thank Lyndon Johnson for this state of affairs , 55 years of welfare hasn't given anyone a leg up , only created a class of citizen who thinks it proper and their God given right to live off of others and the Government . And the Communist leading us now is determined to destroy America anyway he can !

  8. Bill Shakespeare says:

    You're absolutely right. It's not unusual to find flat screen TV's (plural) in these "underpriviliged" homes, the latest high-cost sneakers, and the "unemployed" holding down cash-only job/s (so they don't lose dey ben'fits). Oh yes, never mind the Lexus, Acura or BMW they be drivin'. It's all part of a culture of learning to scam the system. Word spreads quickly, as to how to get SSI, aid for a child who is autistic/retarded/slow learner/disadvantaged or whatever name your claim requires. And they then have enough money to buy some drugs and then sell them on the streets. It's as if the government puts seed money to start an illegal business. Take their EBC card and buy from a store which lets them get things other than food (namely cigarettes/booze) and then sell them outside the store. Oh, and there's plenty of money to play scratch-offs.

  9. Mayflower Decendant says:

    You need to also get with like minded people within your neighborhood and work on a plan together. No one family can protect themselves alone. It's hard because not everyone is awake yet. We've met and had good discussions with one neighbor in our area but we aren't sure if anyone else realizes the seriousness of what is coming down.

  10. SoloPocono says:

    I'm going to post this-despite knowing the replies I'll get. ("this would NEVER happen to us", "well, you probably missed a premium, etc. Things WE used to say). 15 years ago, I was in my 1st year of Med School-a "returning student" at 37. My husband made over $250K/year, I went to working part-time as we had custody of our 6 children between the two of us. We owned a beautiful 4 bedroom, 1 office home, two nice cars, took nice vacations, had over $60K in the bank, health insurance from a company I'd had mine through for over 20years. We bought two beautiful horses. Two years later, I was on Summer Break when a tornado hit our home. No one was there at the time, Thank God. After stressing out for two weeks as my hubby was on an out of town contract at the time in MD., (we lived in Al), friends talked me into going for a ride-horseback ride. I'll TRY & shorten this: Spinal Injury->Spinal Rehab->Insurance dropped me, "pre-existing condition", (and completely legal in Al at the time-NOW outlawed-UNLESS the ACA is repealed of course) Docs wanted me to stay for 9-12 months, 5 months= $450,000. We Lost EVERYTHING, I went to work in a body cast-part-time. Knew absolutely NOTHING about "Entitlements" until 4 years later. In the meantime, we lost our main home, the second home *I* purchased to be near the spinal center., lost our marriage, residence of my children, car, savings, EVERYTHING, and didn't heal correctly because we couldn't afford my final surgery. 4 years later I was homeless, and VERY "disabled" because I also was born with a genetic disorder which was triggered with the spinal injury. I learned about the Fed help I could get about then-but didn't want to go on it-kept convincing myself I'd pull out of it. But after several trips to the ER with broken bones, then kidney failure, (didn't know until then I was born with just one kidney), I had no more choices. I've been on disability & Medicaid now for about five years. $694/month. No housing or other benefits besides Medicaid. I'm 98% bedridden, but am unable to qualify to get anyone to help me. I stopped going to church because I was unable to walk more than about 50ft, am now mostly blind from glaucoma. No family or friends around here anymore to help out. AND, I have to pack up a 1500sq ft apt all by myself in the next two weeks because they are tearing my building down. I began working at 15, founded 2 volunteer, non profit organizations, worked 2-3 jobs most of my life-NOW? I'm treated like DIRT because I'm on "entitlements". NEVER say " well THAT will NEVER happen to ME"!! It does, and HAS-to tens of thousands of Americans. And believe me, I do NOT enjoy "living off the Govt teat"!!!

  11. SoloPocono says:

    PS I don't smoke, drink, nor do drugs. I DO have pain pills I can take after my 2-3 fractures/month. (from severe osteoporosis). I keep hearing about these "freebies" that us "entitlement whores" get-however, when I call Social Services, they laugh at me, say most of that is a ruse. My family got me this iPad for my 50th B-Day and brother & parents give me my Internet access as a yearly Christmas present. I have NO "cell phone", just a land line for $16/mo-no long distance, caller ID or voicemail. I have a 20yr old 13 inch TV/broken VCR, no cable. No washer/dryer-had them, but they were stolen when I was in the hospital-I was trying to help my neighbors by letting them use them. No car. BUT, YES!! I DO have a refrigerator!! It's just 4th tall, but after not having one for 4 months-it's HEAVEN!!! Heat is included in my $590 rent, no AC. Wanna switch places??!!

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