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Obama Restores “Welfare as We Knew It.”

Written by Gary North on October 19, 2012

President Clinton promised to end “welfare as we have known it.” He did succeed in transferring a lot of federal welfare programs to state governments. This earned him the undying hostility of the Old Left. Chris Hedges, a representative of the Old Left, calls Clinton the worst modern Democrat President. The welfare issue is why.

Obama’s Administration is trying to restore the pre-Clinton system. It has increased federal welfare payments by over 30% since 2008. In 2008, it was about $560 billion. Today, it’s almost $750 billion. That’s an increase of one-third.

The money goes to over 80 income assistance (dole) programs for poor people. But the biggie is Medicaid: almost $300 billion. It accounts for 40% of low-income aid. It was $80 billion in 2008.

Medicaid is Medicare for poor people. It is politically untouchable, because the voters on Medicare do not want to oppose subsidized medical care on principle. That is too large a can or worms.

Let us not fool ourselves. Medicaid is fiscal cancer. It will eventually kill the host if Medicare does not kill it first.

Then there are food stamps, re-named SNAP. “Food stamps” sounded degrading. SNAP is snappy. It now absorbs $75 billion a year, and is rising. It has doubled since 2008. About 46 million people are being fed by SNAP.

Large-scale agribusiness loves this program. It’s forever . . . until the host dies.

The Heritage Foundation estimates that 100 million Americans get monthly benefits from at least one low-income assistance program. That is a lot of voters. Best of all from the position of federal politicians, these people become addicted to the subsidies. Their numbers grow. This means more votes.

Until the host dies.

What the addicts will do after the subsidies end is never discussed publicly by politicians. The politicians assume that the lenders who bankroll these programs will continue to lend at 2% per annum forever. The welfare addicts just line up for free medical care and free food. They don’t think about who is paying, or why, or for how much longer.

Since the voters don’t care, the politicians don’t care, and the administrators prosper, what will stop this?

The death of the host.

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10 thoughts on “Obama Restores “Welfare as We Knew It.”

  1. Why didn't the Senate overturn this EO? The house did. Was that good ole Harry Reid? We HAVE to vote this criminals out of office. Get term limits. And most of all get rid of the fascist president who hates America. For all of you that swooned over his faux speeches and voted for him, for heaven sakes, wake up and look up the facts. There are so many things about him…. omg. If only a couple of those things had come out about a Republican, that guy would have been gone, gone, gone.

  2. MontanaMEL says:

    Between this "buying & pandering" of votes by Odumbo's side…and, his/their attack on our MILITARY voters, the thieft of this election is happening right in front of our eyes! Not to mention his union thugs saying: vote early – vote often, and meaning it!

    We are on the very edge of a very deep hole…morally and economically. Do we jump "off" or do we "step back"?

    Only we, the people can answer that question – as our fathers' intended!!


  4. Go to grants.gov look thruwhere your tax dollars are being siphoned off to. Is there a grant there for you? NO, but there is for the African elephant, hamas, Egypt and on and on. This is just one very small site where you can find waste. Dig deeper, these career pols., have been in office for over 40 years, just around the time America started to sink. Remember ( some of you) when only your father had to go to work to support a family of 5? Where is code pinko or Cindy Sheehan these days ? You got to ask yourself, who shut them up and shoved them in their closet? Womens lib, code pinko, the one percenters ( one desenters) and many MORE, ALL Sponcered just for you. The gov., and media know how to invent slogans and use name calling to get you to THINK the way they want you to. Why you never want to be thought of as a homaphobe, or a war monger, or prejudice, ect. Think about it. They have you dumbed down and God has given you up to a base mind. See Romans 1:18-24

  5. Ignoring the 2 million plus annual net (legal and illegal) immigration rate will end any control the people have left very soon and welfare as we knew it will look like the starving masses in third world nations trampling over each for little food. http://www.numbersusa.com / http://www.goooh.com

  6. Rabelrouser says:

    The comments here show a lack of understanding about the financial system as a whole. These created governmental programs are designed to do but one thing and that is increase the debt/ spending, period. The govt finances these programs not through taxes, although that is the lame story, but rather by borrowing debt from the Fraudlent Federal Reserve.
    These programs and who they benifit are not the root problem, but rather a symptom of a constant financial burden structured to create more debt. This gives the politicians the excuse to need more money and where do they publically go for the money, to the tax payers. Then when there is a greater need because of increasing these programs and the recipents, they ask for more.But they keep asking the Fed Res. for more credit, which comes with a high interest, compounded.

  7. Rabelrouser says:

    By being focused on the symptoms (the debt / programs) the root cause still grows, and grows, and can not sustain; the host will financially die when the bill comes due and can not be met; which is soon at hand.
    But this is not an attractive subject, and therefore the collapse will happen, all because no one wanted to understand the truth of it. So its real cause will be the ignorance of the American citizen, nothing more; they will cause it.
    But their screams will reach a fever pitch when the collapse happens, when the money is worthless because they can no longer borrow, but continue to owe for the debt.
    Yes, they (the American citizens) personally owe this debt for the borrowing of the politicians, you are a co-debtor with the government. They set it up like that by making you responsible through a papering over of the Constitution by contractual law. This is known as the Uniform Commerical Code.
    But hey, thats too deep; not sexy enough to discuss. The truth usually is.

  8. If these benefits were only given to the truely needy, there wouldn't be such a problem! If you are not sick, crippled,etc, NO BENEFITS SHOULD BE AVAILABLE!!!! It is too easy to be put on the dole! No one that is NOT a citizen should get aid! If they have kids, tell them you will take their kid and put it in a foster home and they can pick it up when they are 18, I bet this would end the anchor baby crap!!

  9. "The Heritage Foundation estimates that 100 million Americans get monthly benefits from at least one low-income assistance program."

    As an aside, there are around a hundred million non-Americans included in the Census Bureau's oft quoted figure of 300 million 'Americans'. The 100 million +/- either weren't born here or are culturally alien to European civilization and determined to stay that way. The nation's laws have been re-jiggered over the past 50 years to enable them to do so.

    Therefore give them and their enablers all a firm, unyielding boot to the backside by sending them back to where they came from.

  10. Amen, Texan, You are totally correct. But as they say, most evil begins from good intentions.