Taking From Peter to Give to Paul Is Not America

Commentary

A newspaper story from several years ago recounted an incident at an elementary school where a teacher organized elections in his class.

The students selected their candidates, with one little boy running against a little girl.

The boy presented his ideas for making positive changes in their lives, while the girl promised ice cream to everyone who voted for her.

In the end, the little girl won by a landslide.

While this may seem like a charming story involving 10-year-olds, it sheds light on the political landscape of our country today.

Two-thirds of federal spending, which currently accounts for almost one-fourth of our GDP, consists of transfer payments.

Unlike direct payments to individuals or firms, such as salaries or Department of Defense purchases, transfer payments are funds automatically transferred to a specific group of citizens from the federal budget, as well as funds transferred to states by the federal government.

These programs include Social Security, Medicare, food stamps, refundable tax credits, Medicaid, housing assistance, welfare, and public transportation.

These are automatic, mandatory transfers that have grown significantly as a percentage of federal spending since 1950.

According to the House Budget Committee, the percentage of the U.S. population enrolled in Medicaid has risen from 9.3 percent in 1975 to 24.3 percent in 2022, those receiving food stamps from 7.9 percent in 1975 to 12.4 percent in 2022, and recipients of the earned income tax credit from 2.9 percent in 1975 to 9.3 percent in 2021.

One of the oldest and largest programs in this category is Social Security. While individuals receiving Social Security benefits may argue that they earned them, the broader issue is that most Americans have no choice but to participate in the program, and the benefits they receive come from taxes paid by others.

It is worth noting that these types of transfers were once considered unconstitutional. However, the constitutionality of Social Security was established in the case of Helvering v. Davis, which expanded the interpretation of the “general welfare” clause of the U.S. Constitution.

This ruling gave Congress broad authority to tax and finance programs, paving the way for the growth of the modern American welfare state.

This system of transfer payments has been a significant driver of federal spending and borrowing.

While change is possible, it requires a concerted effort. Welfare reform initiatives, such as AFDC and TANF, have successfully reduced the percentage of the population on welfare over the years.

The founders of our nation envisioned a government that protects life and property in a free society under God.

Our challenge now is to realign with this original mission and vision, which will ultimately benefit us all.

Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.