The Complete Moderate’s Guide to Welfare
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The Complete Moderate’s Guide to Welfare


Monopoly is a classic board game where families
sit around to argue and play out their own little simulation of free market capitalism. There is no better system to teach kids about
the joys of paying taxes and rent, really. But in Monopoly, unless you bend the rules
to keep the game going, when someone loses and goes bankrupt they just… vanish. It doesn’t work like that in real life. If enough people go bankrupt and aren’t
allowed back into the game, eventually, they get out their torches and pitchforks. So let’s examine how America has bent the
rules in order to keep as many people as possible playing the game. This video is brought to you by Skillshare. The problem with wanting to discuss welfare
in America is defining welfare. There is no official government definition
of welfare and in fact, there is no program with the word welfare in its name. If you were to get seven different people
into a room, you would have seven different interpretations of what counts as welfare. I know this… because I tried on Twitter. So for the purposes of this video, we’re
going to go with the programs that most everyone agrees are welfare… Where the government is giving you monetary
assistance based on your income or inability to work. This can either be direct, or through a subsidy,
or through free or discounted services. So does using public roads and relying on
the police for protection count? Not really, while it is a “free” government
service, you’re not getting monetary assistance for that and you get it regardless of your
income. Does having a federally-backed mortgage or
student loan count? Well, that’s a little foggy, the government
is financially insuring your loan, but not to you directly, it’s mostly just insurance
for the banks. But when we start talking about tax credits,
the fog starts to lift. A tax credit reduces the amount of taxes you
owe after taking your deductions and brackets into account. Taxes in the United States are incredibly
complex, and someone should definitely make a video explaining them. Would you like to know more? And there are two refundable tax credits you
can claim based solely on your income level and family situation. Meaning that if you owe a negative amount
of federal income tax at the end of the year, the government will give you extra money on
top of getting back everything that was withheld. The Earned Income Tax Credit, or just EIC,
was designed to encourage working because you can only get it by… earning income. Many analysts in both political parties believe
that it helps lift people out of poverty. The credit increases with the more you make
and eventually decreases with the even more you make, you only get it up to a certain
income level. I wish I could tell you what that level is
or what the average person gets, but it changes for literally everyone. What I can tell you is that this credit is
claimed on 27 million tax returns and cost the government 65 billion dollars in 2017. Both in lost tax revenue and in having to
pay out extra. The Earned Income Credit also increases with
your family size, which likewise entitles you to claim the Child Tax Credit. One thousand dollars for every child you have,
I guess the government thinks that’s enough to pay for childcare for a year. The Child Tax Credit is claimed by 35 million
families and cost the government 52 billion dollars in lost revenue and payouts. These two tax credits combined are why almost
half of Americans pay no federal income tax… Romney was actually right when he said that. But almost nobody who claims these credits
would classify it as welfare – even though it fits our definition of direct monetary
assistance based on income. Probably because there’s a weird stigma
about having received welfare and nobody wants to admit that they might have. Take education for example, up through high
school it’s free for everyone, regardless of income, so that’s not welfare. But higher education is a different story. We’ve already ruled out student loans, but
if you filled out a FAFSA, you very likely received a Pell Grant. This is monetary assistance based on income. It’s not direct since it goes to the school
rather than to you, but it is free education assistance that you never have to pay back. You can receive up to $5920 per academic year
for up to six years. Seven million Americans received the Pell
Grant last academic year, costing the federal government 28.2 billion dollars. But these are still gray forms of welfare
that not everyone would agree counts as welfare. So let’s switch gears and talk about the
more black and white forms of welfare… like the Obamaphone from the 2012 election, do
you remember that? You got Obamaphone? Yes, everybody in Cleveland if you a minority
got an Obamaphone, keep Obama in president, you know? He gave us a phone, he gonna do more. The program is actually called Lifeline, it’s
administered by the FCC and provides discounted telephone service to low-income households. And it was actually started in 1985 by Ronald
Reagan. It used to only provide landline phones but
has since moved on to cell phones and recently started to offer internet service. Because c’mon, it’s 2019 and nobody uses
a landline anymore – not even your grandma. It’s not a free phone though, it’s a discounted
service where the FCC only pays $9.25 a month on your bill, you cover the rest. You actually help pay for it with that Universal
Service Fund tax on your bill. 10.7 million households are part of the program
and it costs the government 1.3 billion dollars a year… this is by far the smallest program
I’m going to talk about today. She actually explains how you qualify in that
clip… How’d he give you a phone? You sign up, if you on food stamps, you on
social security, you got low income, you disability. Your income must be at or below 135% of the
Federal Poverty Line or you have to participate in another federal financial assistance program. And most of those other federal financial
assistance programs are what we would call “welfare.” Temporary Assistance for Needy Families, or
TANF, is a cash assistance program that fits almost everyone’s definition of welfare. It’s also sometimes referred to as state-sponsored
child support. Its main purpose is to serve as a financial
safety net, provide job opportunities, promote family stability, and prevent out of wedlock
pregnancies… that’s a weird one. It falls under the Department of Health and
Human Services and distributes 17.3 billion dollars to 3.4 million families. Though, like many of these programs, it’s
actually run by the individual states and each state sets their own requirements and
payout levels. Under the program, you are supposed to accept
a job within 24 months and be working or training for 30 hours a week, and you can only be on
the program for a maximum of 60 months… the heck is that? That’s uh, that’s an asterisk. Yes, I know what an asterisk is thank you,
I mean why is it there? Well, like you said, a lot of these programs
are run by the several states, so eligibility, time limit, and benefit amounts are all over
the place, you know, not to mention all of the exceptions. Ah, so every time that shows up it’s because
there’s some fine print that I’m skipping over in order to keep this video from being
an hour long? Yeah. Like how Georgia limits TANF to only 48 months. Georgia actually has some of the strictest
TANF requirements. You must have a child under 18 years old – which
makes sense, it’s called assistance for needy families, not individual people. You must be in a single parent home. Which doesn’t make sense since the program
is supposed to promote two-parent family stability. And, again, you must be part of or applying
for another federal financial assistance program. Perhaps the fact that many of these programs
require you to be on other programs is why they call it a safety net… You can’t just be on one, you have to be
on several. For a family of three, that is a single parent
with two children, they must have an income under $784 a month and have less than $1000
in total assets. Once you’re on the program for ten months,
your payout cannot be increased because of having more children. So the myth that some people intentionally
have more kids in order to increase their welfare payments is… just that a myth…
at least for TANF in Georgia. If you meet all of these requirements, the
maximum payout regardless of how many children you have is $280 a month. Georgia hasn’t increased their TANF payout
in 22 years, so taking inflation into account its value has dropped by 37%. New Hampshire is the highest at $1039, California
is at $714, and Texas is at $290. You get these payments on an Electronic Benefit
Transfer, or EBT card. EBT itself is not a welfare program, it’s
just how welfare is received instead of on paper checks because it’s 2019. But TANF isn’t the only program that uses
EBT, by far the most popular is the Supplemental Nutrition Assistance Program, otherwise known
as SNAP or more commonly, Food Stamps. It’s federally run by the USDA, serves 44.2
million people at a cost of 70.9 billion dollars. You can only use SNAP for fruits and vegetables,
bread and cereals, dairy, meats, and consumable plants and seeds. Basically the food pyramid, but, without the
top, no candy. Yes, I know they don’t use the food pyramid
anymore, I’m old. But you literally can’t use food stamps
for booze and cigarettes, that’s another myth that needs to end. In fact, alcohol and tobacco are at the top
of the list of things you can’t buy with SNAP, along with hygiene products, pet food,
or hot and prepared food. Which means, no fast food either. A good rule of thumb is that if there is no
sales tax on an item, you can probably buy it with SNAP. In order to receive SNAP, you must be at or
below 130% of the Federal Poverty Line. For a family of three that’s $2252 a month,
and for a single person it’s $1245 a month. If you work full-time for federal minimum
wage, you qualify for SNAP, just let that sink in for a second. The maximum benefit for a family of three
is $505 a month, while a single person will get $192 a month. Just for reference, I spend way more than
that on groceries and you probably do too… that’s why it’s just called an assistance
program. But I’m a single guy, I basically eat a
trash-tier diet and I don’t have any special nutritional needs. It’s not like I’m pregnant… or an infant. Which is why we have the Special Supplemental
Nutrition Program for Women, Infants, and Children, more commonly known as WIC, specifically
for pregnant, post-partem, and breastfeeding women, infants under one, and children under
five. It’s also run by the USDA and serves 7.3
million people, at a cost of $6.58 billion dollars. The financial requirement for WIC is quite
a bit looser than SNAP at 185% of the Poverty Line, so 53% of all newborns in the country
are part of the program. Which is good, because one of its primary
goals is to increase the vaccination rate. Much like TANF, WIC exists to provide assistance
to the country’s poor, while promoting some other background goal like family stability
or preventing epidemics. In many states, over half of all newborns
are also born under Medicaid. We don’t have universal healthcare here
in the United States, for reasons that are not in the scope of this video, but we do
provide varying degrees of socialized healthcare for certain groups. The first group is Medicaid, which is the
single largest source of healthcare in the United States, for people living at or below
133% of the Federal Poverty Line. It’s administered by the Department of Health
and Human Services along with a similar program known as the Children’s Health Insurance
Program, or CHIP, for children of people who make slightly more than the Medicaid limit. For the purposes of this video, we’re going
to combine them together since they’re basically the same program just for different age groups. Together, they cover 73.9 million Americans
at a cost of 576.6 billion dollars (2017), though slightly under half of that comes from
the states rather than the federal government. Because like many of these programs, it’s
run through the individual states. You might even be on Medicaid and not realize
it because your state calls it something else, like MediCal or BadgerCare or PeachCare. In fact, you might even be under ObamaCare
and not realize it for the exact same reason. Although it’s actually called the Affordable
Care Act and it didn’t really provide socialized healthcare for anyone. What it did do, among other things, was require
health insurance companies to cover pre-existing conditions, increase the time you can be on
your parents’ insurance, and require everyone to have insurance… at least for now. You’re still buying private insurance, there
is no ObamaCare card. But the ACA did provide subsidies to help
people get insurance that might not otherwise be able to afford it, which cost the taxpayers
42.6 billion dollars. It also expanded the eligibility for Medicaid. Remember when I said Medicaid covers people
at or below 133% of the Federal Poverty Line? For people living at or below 133% of the
Federal Poverty Line. That’s because of the ACA Medicaid Expansion…
which was optional. So if you live in any of these states, which
did not accept federal funding to expand medical coverage to poor people, the requirement is
likely lower than 133%. Meaning you have to be in super-poverty to
be eligible for Medicaid. Or super old if you want to be eligible for
Medicare. Medicare is the second largest source of healthcare
in the United States, serving 58 million people who are at least 65 years old at a cost of
591 billion dollars. And it’s also not a form of welfare. Medicare is not a free healthcare from the
government like Medicaid, most people on Medicare pay premiums, copays, and out of pocket expenses
just like everyone on private insurance. The only difference is that this run not-for-profit
by the government. It’s partially funded through those premiums
and partially from that 1.45% that comes out of every paycheck… and the matching payroll
tax from your employer. Medicare is only free if you are dual-eligible
for Medicare and Medicaid at the same time. 9 million people fall into this category,
costing 200 billion dollars, meaning that this small fraction of people on Medicare
account for almost a third of Medicare’s entire budget (2017). The VA, or Veteran’s Affairs, is also not
a form of welfare. If we go by the definition we established
earlier, you don’t get VA healthcare or disability benefits based on your income,
it’s more akin to Worker’s Compensation… but for the military. Not every veteran gets VA benefits, you have
to have a service-connected disability. That’s a physical or mental health injury
that was directly caused by your military service. Depending on the level of injury, you might
only receive care for that specific injury. Like a hearing aid if you have service-connected
hearing loss. You might also receive disability payments,
which is compensation for your decreased ability to find a job elsewhere as a result of your
injury. It isn’t free money or welfare, it’s military
worker’s compensation. Worker’s Compensation, or Workman’s Comp
depending on your state, is an insurance program paid for by employers and run through the
state. You only qualify for it if you have a workplace
injury and even then… The idea is to pay for any healthcare costs
related to that injury and maybe help cover the bills while you recover. So that you can get back to work. Unemployment, on the other hand, does fit
our definition since it’s monetary assistance based on your inability to work. Or at least inability to find work, hopefully
only temporarily. Unemployment Insurance is paid for by employers
and again administered by the individual states, with some help from the federal government. It cost the government 31.5 billion dollars
in 2016, which is the lowest it’s been in decades. You have to be unemployed through no fault
of your own, so laid off or your employer goes out of business or something. Not if you quit or were fired for misconduct. Currently, you’re allowed to claim unemployment
for 26 weeks – in most states – which is just over six months. During the Recession it was extended to 99
weeks, which is just shy of two years. The roughly 7 million people who relied on
that extension are referred to as the 99ers. It’s nearly impossible to track how many
people rely on unemployment, because some people are only on it for a few weeks, some
people are on it for months, and some people can be on it multiple times per year. The payout amount depends on your previous
income. It varies widely by state, with the highest
maximum payout being $783 a week in Minnesota and the lowest being $235 a week in Mississippi. Meaning regardless of your prior income, that’s
the most you can get. Some states require that you prove you’re
looking for a job while claiming unemployment and a few require you to take any job that
is offered to you. Even if it’s part-time, minimum wage, or
way outside of your skillset. Studies have shown that in general, people
who are on unemployment don’t spend any more time unemployed than people who live
off of their savings. It’s just a way to help you pay the bills
and keep a roof over your head while you look for a job. Speaking of keeping a roof over your head,
I’m actually kind of surprised we haven’t talked about housing assistance yet. It’s actually kind of complicated and I’m
going to need some visuals… actually, hold on, I have something for this. It’s a good thing I brought up Monopoly… F*** Alright so, this is a rich person’s
house and this is a … wait. Okay, alright so, this is a rich person’s
house and this is a… Hold on a second I got this one. So housing assistance today comes in a couple
forms. We’ll start with traditional public housing
projects. So a “project” was usually a certain number
of towers or low-rise housing blocks clustered in an area, all built at once. The most important thing to remember is the
vast majority of public housing “projects” were built under the 1937 Wagner-Steagall
Housing Act and its 1949 amendments. The legislation was drafted to “improve” the
housing supply, rather than to add to it — New public housing had to replace private housing
“one-for-one.” This was so as to not “distort the housing
market” with an excess of affordable public housing units. So whole neighborhoods were levelled to build
public housing. Now, the low-rise blocks usually did quite
well as they were cheap and easy to maintain, but the towers usually didn’t fare as well. Once occupancy dropped below 100% there wasn’t
enough rent to keep all the complicated systems that make a housing tower work in a state
of good repair, and stuff started to fall apart. Now, “HOPE VI” in the early 1990s was a program
originally designed to demolish and replace the most “blighted” public housing towers
with new, “mixed income” housing to reduce “concentrated poverty.” The idea being that if poor people live next
to rich people they’ll stop being poor, because, I dunno, money travels through walls by osmosis
or something. Right. Originally this program worked as designed
but in the late 1990s under the leadership of some guy named “Andrew Cuomo” the definition
of “blighted” expanded to include “any project on valuable land we can make a buck off of
by selling or leasing it to private developers.” There is also a thing called “scattered sites.” where a public housing authority buys ordinary
houses and rents them out to those who qualify for public housing. You might live next to one and not even know
it. So you qualify for public housing if you are
“low-income”, defined by the department of housing and urban development as making 80%
of median area income. Your rent is capped at 30% of your income,
with a lower boundary of $25 a month. Now if you think this sounds appealing, you’ll
find that a lot of other folks also think so! My local housing authority, the Philadelphia
Housing Authority, has a waitlist for its public housing projects which is 104,000 names
long. The average wait time for a unit is ten years. This is of course compounded by the fact that
demolition of housing projects are still underway under HOPE VI even as the waitlist expands. Now, luckily there’s an alternative to government
run public housing called Section 8. So a Section 8, or “housing choice voucher”
works like this: You can rent a private residential unit in any building with a Section 8-friendly
landlord. You are expected to pay 30% of your income
in rent, with the remainder made up by the local housing authority. Section 8 landlords are required to charge
no more than what the government calls “fair market rent” — usually well below actual
market rent. Since there are a lot of section 8 tenants
to choose from and HUD is fairly prompt with the checks, it’s easy and steady money for
landlords. We spent about $32 billion on the Section
8 program in 2017 — as compared to $6.3 billion on public housing in the same year. However, much like public housing units, the
demand for Section 8 vouchers far outstrips the supply. In 2011, for instance, the Oakland California
PHA received 100,000 Section 8 applications in its 5-day application period. Through a lottery, 10,000 of them actually
made it on the waiting list, which was 6 years long at that point. Most Section 8 waiting lists are outright
closed. And there are a dozen or so smaller programs
like the low-income heating assistance program or LIHEAP, which helps folks pay for gas and
electric in the winter, and some programs that subsidize private low-income housing
developments, often in the form of tax credits. A lot of these are administered by municipalities
so it’s hard to track how much they cost us on a national level. So there is housing assistance for the poor,
but it’s not easy to get. Do you get anything if you’re middle-class
or rich? Yes it’s called a 30-year mortgage and is
one of the most durable facets of the New Deal which has had the largest impact on American
life. But you’ll have to go to my channel to learn
more. I’m donoteat, but my channel is called “donoteat01”
because someone already took “donoteat.” I have an hour on this subject of public housing
over there, soon to be 2 hours, and that second hour is where you’ll learn about mortgages,
so go over there and watch that if you wanna know more about public housing and housing
assistance in America. Ok, the commercial’s over, back to the studio. Wait, sorry, hold on! Alright, so there’s one last program that
we need to talk about here – Social Security – and before you freak out and say it’s
a benefit you’ve earned. You’re right, Social Security itself isn’t
welfare by our definition. But there are three parts to Social Security
and two of them definitely are. Social Security Disability Insurance, or SSDI,
is a cash assistance program for people who have a physical or mental condition that prevents
them from engaging in a “substantial gainful activity.” It’s not Worker’s Comp, you don’t get
it because of a workplace accident. It has to be a disability that prevents you
from getting a job for at least twelve months, or less than twelve months but will eventually
result in death, and be under 65 years old. You also have to have contributed to Social
Security for at least half of your working life. 10.7 million people are on the program, costing
the government 142.9 billion dollars, with the average person receiving 1166 dollars
a month. SSDI comes from the Social Security Trust
Fund, which is separate from general taxes. Supplemental Security Income, on the other
hand, does come from general taxes and the regular federal budget. SSI is a supplement to Social Security or
SSDI for people with low incomes. You have to be drawing from Social Security
or SSDI already, but that amount is low enough that you’re still not able to make ends
meet. The maximum payout is 733 dollars for a single
person and 1100 for a couple. It’s still run by the Social Security Administration,
8.3 million people are part of this program and it costs the government 63.4 billion dollars. So alright, the elephant in the room. Social Security is a mandatory socialized
retirement program in the United States, and like Medicare, is subsidized through that
6.2% FICA Tax on your paycheck and is not run for profit. Unlike the retirement program that you may
or may not have through your employer. It’s not a Ponzi scheme, it’s not going
to run out, that’s just something politicians used to say because they wanted to lower taxes
and privatize it. Isn’t weird that they stopped talking about
that when the Baby Boomers started retiring? That fear came from the idea that each generation
would be bigger than the last, which isn’t the case, Social Security isn’t going anywhere. It probably won’t be enough for you to retire
on, but it will be there. You can retire early at 62 for a reduced amount,
but for most of the people watching this video, the full benefit doesn’t start until you’re
67. You also have to contribute to it for at least
10 years. This is why undocumented immigrants aren’t
a drain on Social Security, because they probably didn’t contribute to it at all. Can we stop with that stupid myth please? Once you’ve contributed enough, you’ll
start getting a statement in the mail detailing how many credits you’ve earned and how much
you would get if you retired or were injured today. Or, you can also check it online. 49.5 million people are part of the general
Social Security program, which costs the Social Security Trust Fund 762.1 billion dollars. The average person receives 1345 a month,
but it varies widely depending on how much you contributed. Social Security is not welfare under the definition
that we established, it’s a general retirement fund that you contribute to during your working
life and draw from later in life. You’re not getting it because of your income
or inability to work, aside from SSI and SSDI. I only bring it up because it was one of the
most mentioned programs when I asked on Twitter – but also because it could serve as a decent
scaffold for what we could turn welfare into. Many people in both major parties want to
reform our welfare system. Our system is extremely complicated, we only
talked about fifteen programs in this video and that barely scratches the surface. And many of them overlap and require you to
be in multiple programs. We could simplify this system by introducing
a Universal Basic Income, that is a flat check to everyone in the country, regardless of
income, age, disability, or anything else. It’s also known by other names like “Mincome”
and the Negative Income Tax, which was first proposed by Nixon of all people. You’ve probably already heard about UBI
from politicians or… a certain German Youtube channel whose name I would butcher if I even
tried… For this video, we’ll talk mostly about
the Minimum Basic Income, enough money to be above the poverty line. In the US, this means about 1000 dollars a
month, or 12,000 dollars a year. Before you go thinking that that is an excessively
large amount, if we were to combine every program we talked about in this video and
disperse it evenly among every man, woman, and child in the United States, each person
would get 635 dollars a month. So without making any other changes whatsoever,
we’re already about two-thirds of the way there. We could combine all of these programs and
eliminate all of the bureaucracy that we already have in the budget and shift it to one program
that covers everyone. And we already have an agency that collects
from and tracks everyone – Social Security. One of the common arguments against a universal
basic income is that people would get lazy, stop working, and just live off of the government. As if $12,000 a year is enough to live on,
there’s a reason they call it the Poverty Line. But while studies are currently starting in
the United States and wrapping up in Finland, they were done 40 years ago in Canada. And almost nobody quit working. Really, the only people to work less were
women who took a longer maternity leaves and teenage boys who chose not to drop out of
school because the family wasn’t desperate for another source of income. Oh man, what a socialist dystopia. Imagine that, not having to drop out of school
to go slave away in the mines so your family has enough to eat. But there are other benefits to a Universal
Basic Income. Since automation is likely going to reduce
the amount of jobs available, people will be laid off through no fault of their own. UBI could keep them afloat, rather than unemployment. Likewise, if work becomes optional, employers
will have to improve conditions or offer extra incentives in order to keep people working
there. We could also accomplish that Libertarian
dream of abolishing the minimum wage. If all of your basic needs are already met
and you don’t need your job in order to keep your apartment or go to the doctor, you
wouldn’t need to be paid a livable wage. Because you already have a “livable” wage. Work just becomes extra money, they could
pay you whatever the market decides is fair, because no one needs it to survive. And what would you do with all of that extra
time on your hands? Learn a new hobby from Skillshare by going
to skl.sh/knowingbetter4. Skillshare is an online learning community
where you can learn new life skills from experts in their field. If all of your basic needs are met, you can
finally learn how to basket weave, it’s not underwater but you have to start somewhere
right? Or, like me, you can try to up your video
editing skills by taking this course in Adobe Premiere. You may have noticed a few style changes here
and there on my channel recently and learning Premiere is part of that transition. I would be completely lost without this series. So head on over to skl.sh/knowingbetter4 and
get 2 months of unlimited access to all of Skillshare’s courses for free, you’ll
also be supporting the channel when you do. A Universal Basic Income would require us
to fundamentally change the way we think about money. Which is actually a lot harder than you might
think, people get very set in their ways, especially when it comes to money. If we introduced UBI and got rid of minimum
wage, many people would have a hard time adjusting taking a job that only pays 2 dollars an hour. We’d also probably have to restructure the
way we do taxes. But not changing because – ugh, it’s just
too hard – isn’t a good enough reason. This is America, I thought we took pride in
accomplishing difficult things. It would also stop people from complaining
about how certain people are takers and should work just as hard as them. If everyone is getting the same amount, everything
is fair. As the world changes, technology gets better,
and jobs disappear we’re going to have to adapt with the times, just like we have in
the past. Remember when we got off the Gold Standard
in the US or when Europe adopted the Euro? So now that you have a better understanding
of the systems we already have in place, you can start thinking about how we can change
them in the future, because now you… know better. I’ll be streaming the State of the Union
much like I did last year, so be on the lookout for that announcement. Big thanks to DoNotEat for helping me with
the housing segment, be sure to check out his channel in the links below. If you’d like to help support the channel,
head on over to patreon.com/knowingbetter, don’t forget to subsidize that subscribe
button, follow me on twitter and facebook, and join us on the subreddit.

About Bill McCormick

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100 thoughts on “The Complete Moderate’s Guide to Welfare

  1. Be sure to check out donoteat01's video(s) on Public Housing – https://www.youtube.com/watch?v=xqJbE1bvdgo

    Slight correction: The $591B Medicare cost is what taxpayers pay, not what those on Medicare paying premiums pay.

  2. If everyone made 12k more per year, wouldnt they be more likely to be willing to pay more for goods and services? How would it help if the poverty line just increased with it. Why is the poverty line where it is now? How do we calculate it? How do companies set the price of goods and how are property values assessed?

  3. I read the title: The Complete Moderates Guide To Welfare. Completely different video ensued. I enjoy your historical videos. When it comes to politics you are not a moderate my dude.

  4. Automation won't effect jobs that much. Automated lines often require human input. For production, and repair. Most jobs also can't be automated efficiently.

  5. UBI would cause an increase in living expenses that would make the UBI obsolete. Then we’d increase it, and it would start all over. Bad idea.

  6. Small correction: at least in Illinois, you CAN purchase ice cream, candy, soda, and other snack foods with SNAP. I know this as a former cashier and with friends on SNAP, including my former roommate who was also on disability payments.

  7. Very much dislike the current state of welfare. I work 80 to 100 hours a week in my neighborhood is several welfare people. They don’t work have a better car than I do and eat better pisses me off

  8. As a single guy if I never ate out I can easily eat well for less than $200/month. I eat out as a time saver so I have more time to work on other projects and to help support local businesses.

  9. Should have spent more time comparing the cost vs actual citizen benefits received of all these programs. Couple other things; our tax systems are completely(not the worst, but still) overly complex, to the point that only the richest with accountants/financial advisors can understand them enough to even know whos political proposals even make sense(for them, then they can lobby, advertise,vote for, and profit from that). Next, any 'welfare' system that benefits the benefactor more by being lazy than by trying to contribute to society is a failure. I like this channel a lot, but I also see alot of (slightly) misplaced generalizations. Our biggest problem in the US is the bureaucracies that are charged with implementing these programs. Look at all major cities and their major problems; poverty, crime and corruption, revolving prison door, poor education, lack of motivation/general citizenry. Compare that to the money spent on public employees that are paid (tax money) to run it all. Also, Knowing Better, while your circle chart for governmental systems is closer to reality than most generalizations, its still a vague diagram at best. My idea would be to start at the term democratic-republic and the differences between both sides of this spectrum. And also, while you spent a lot of time trying to explain the different types of government for what would be a welfare explanation video, you didn't touch the laws that were designed to prevent a lot of the problems America faces today, namely monopoly laws and the major corporations that can afford the lawyers to ignore them. Otherwise, good breakdown of the programs being used and abused.

  10. They're referred to as "welfare" programs because they're ostensibly (and rightly, IMO) authorized under the General Welfare Clause of the Constitution. Not sure if anyone else commented this but here it is…

  11. Im sure this is full of grammatical errors I typed this on my lunch break but heres my thoughts. I don't believe in people choosing not to work because they have enough money through welfare programs so they can choose to learn fun skills they will never make money doing I'm sure you were being sarcastic. You talk about how people are only getting a few hundred dollars but then you say that people are typically enrolled in many different programs chances are when you add it all up they're getting way more than a few hundred bucks as the saying goes a million here a million there pretty soon you're talking real money point is someone has to pay for all that and seeing as we are already running a huge deficit I don't think more social programs costing more money will help it's going to inevitably end in a number of bad ways so how about we get the USA to run a surplus then we can talk about social programs. If our country doesn't do something about our debt life here is probably going to change catistofically and we will all be missing how good we have it now.

  12. In the UK we have many benefits that are paid to people. It was noted that some people claimed so many benefits and go so much money it was unlikely that would find a job that pay enough to replace the money received in benefits.

    So we are moving to a single scheme called universal credit (UC). UC has a cap on the amount someone can receive, and so it motivates people to work. Trouble is it is currently slow at reacting to people’s changing circumstances.

    These are the welfare benefits available in the UK:
    Jobseeker's Allowance (JSA)
    Welfare benefits for low or no income:
    Employment and Support Allowance (ESA) …
    Income Support. …
    Housing Benefit. …
    Council Tax Support/Reduction. …
    Support with Mortgage Interest (SMI) …

    Welfare benefits for people with health issues:
    Personal Independence Payment (PIP) …
    Disability Living Allowance (DLA)
    Attendance Allowance
    Carer's Allowance
    Cold weather payment

  13. Great video. I would be interested if you did a video regarding corporate welfare. How the government gives money to certain industries.

    The UBI could do a great deal of good for most people but I don't think it should or can replace a minimum wage or some of our welfare services.

    $1000/month may keep you from being considered poor and may be enough to live. But not to thrive.

    If no other large programs like a universal AFFORDABLE home program, Medicare for all or student loan debt cancellation come to fruition, you will still have people going bankrupt and/or losing their homes.

    UBI is only a bandaid on a bullet wound if no other large changes take place.

  14. Here is something to think about that no one hardly talk about. Regardless what the climate of economic or all the smoke blown to complex things for the last hundred years or so, the federal govt takes their share of the pie at roughly 17 % of the total net tax collected. Anther words regardless the tax rate the fed govt will take their 17%.

  15. Ubi or not won't make much different. Robots will not take our jobs, capitalism is a system of adaptation. Let's ask ourselves how many flavor of coffee prior to automation as regard to coffee production. What happens to the coffee production when automation took over? Did we lose or gain more jobs regarding coffee making despite automation. This dismal belief that automation will take our human jobs are dumb n silly. Every 25 yrs or so this happens either on small or grand scale. Jobs are created if there r no more jobs to be created that means either all resources are limitless or totally "no more". Human beings are actually pretty predicable, like young kids we either destroy things justified or not or we creat things justified or not. One may say there are spectrums to destroying to creating or interchange the meanings. Better yet talk about some eco equilibrium. Humans will live one way or another n as long as we want to live there will be economics. Until we decided that we r so fatigued of being human n leg another species take over or a catastrophic cosmic event wiped us off this plane. I said let it ripped n vote for ubi just because it sounds good. 👌

  16. 8:25 When my mom used to work at Dominic's (an out of business grocery store) she told me many people would try to use their vouchers to purchase alcohol and tobacco but she had to deny them or she could be fired.

  17. Earned income tax credit is nothing like welfare.
    How can you compare government assistance that gives people money it takes from tax payers when they don't work or earn enough to pay taxes themselves, to a tax credit for people who pay more in taxes than the average income families because they earn more money?

    On one side you have welfare or government assistance, which is money taken in taxation from people's income earnings they receive from working, then given to people with no job or families not earning enough money themselves from the work they do to even be able to contribute into the tax system, let alone provide for their family.

    On the other side you have tax credits, which is money that people earned from their hard work to try and create a good life for themselves and provide for their families, and depending on the circumstances for each tax payer and his family the government may give some tax brakes that's basically like helping the taxpayer cover a portion of his owed taxes.
    The tax payer is still taxed for the entire taxable earned income, then given a tax credit to help pay a small portion of it.
    It's not like a tax wright off or tax exemption, where tax payers have different categories for non taxable income earned that excludes some of their income from taxation allowing them to keep a portion of that money tax free.
    I don't know if it's better or not but it not the same.

  18. Social security is the biggest RIP off ever perpetrated on the American citizen because it doesn't keep up with inflation rates. The money you put in loses its value over time. Even if it put into municipal bond funds it would be way better.

  19. Woot I and three buddies could get a three-bedroom home in a low rent area each making 12,000 a year equaling 48,000 a year and work as day labor to make more… The price of housing would SKYROCKET within a generation. A universal income, are you kidding me?

  20. Knowing Better should know better… anything you cannot do means there will be a black market for it. Yes I have had many clients who funded their smoking and alcohol habits with SNAP.

  21. 8:20 yet candy/all sweet foods are allowed to be bought by food stamps. I think ~$35 million of taxpayer money was spent on on chewing gum. That’s not even a food!

  22. Fence Sitter!! Also little does he know many convenience stores in shady neighbourhoods will make illegal deals with consumers where the consumer will by a pack of cigarettes worth of food with their ebt card, then trade the food bought for a pack of cigarettes.

  23. I find it difficult to find the fake church of salt lake city shill and if we leave out juan mcKerry-Kennedy-algore, the worst presidential candidate ever saying anything that's true.

  24. Golly Gee – trusting the government to run much of any program? Someone hasta be smokin some really good stuff.

  25. Did he say you cant buy candy with food stamps? That's not true. You can buy anything in the grocery store that's edible.

  26. dude there is one problem with The UBI. Americans have a higher standard of living than most other countries and 1,000 dollars in an area wouldn't go as fare. This is why our system is mostly ran by the states and not federally. You should know this being prior service unless you didn't collect BAH. Witch is a nice test run of the system and as you know and E-1 living on base only realy gets 600 a month without BAS or BAH. Also the system took the choice away from Single E-4 and below to live within the meens the millitary provides. Also this would standerdized slums do to no insentives to keep repairs due to getting a check anyway each month.

  27. So.. he's talking about Medicare and VA benefits which are NOT welfare. These are entitlements. You paid for them or they were a benefit of your employment (military).

  28. Medicare is not welfare we pay for it both when we were working and every month after we retire or become disabled(also not welfare we pay 15% of our earnings to social security) it is insurance that not everyone qualifies to BUY

  29. I’m really grateful for the pell grant. I study my bachelor’s in P.R. and is good here. The prices here are ridiculous. I’m lucky I did it there.

  30. I’m sorry. But unfortunately I need this assistance in New York. They have the cash portion and that’s what I used to buy detergent. Soap and things like that. Some people sell the food stamps too. This means they offer $200 food stamp for $100 cash. Is not a myth some people use for cigarettes and buzz. But there’s honest people too that use this assistance while they need and cancel them. Just how I did.

  31. The system is specifically designed to keep you down. If you have just a little bit… you get NOTHING! Once its gone, they'll give you what you need. The MINUTE you make a little more than allowed they take everything away. It incentivizes you to stay down cause the last thing the system wants is an educated, self sufficient electorate capable of critical thinking.

  32. 7:10 "So the myth that some people intentionally have more kids to increase their welfare payments is just that, a myth (at least when it comes to TANF)"

    9:36 Women who are pregnant or have young kids get money. paraphrased that because it would be a much longer quote

  33. Here's how you stop generational welfare. 1) Stop thinking in 5-year increments start thinking in 20 to 50-year increments. Start thinking about passing financial/economical values and strategies to your children, and your children's children; build an empire. Good luck, because most people don't give a fuck and rather be on social media, buy bullshit and will be perpetually poor.

  34. Gotta say, trying to buy food when you have food stamps and Celiac disease is a mighty challenge…I’m really glad I can afford food now (just barely, but I can!).

  35. all walfare are ideas from Socialism, as its based on taking at gunpoint from some and giving to other – I don't think economiy listens to excuses and only calculates resaults

  36. 26:00 and the resaults of such experiment should be measured in at least 3 generations of people (like efects of desacularization of country)

  37. UBI sounds great in theory and I would definitely vote for it if it replaced all other welfare, but I’m just not sure it would work in practice. Just because everyone would get a monthly check, it doesn’t mean they will spend it wisely. There would also need to be stipulations to force people to buy insurance for instance

  38. but UBI doesn't take into account need that slides based on things like disability-where need is much greater than average and may need extra help regardless

  39. Ok now you are just telling flat out LIES!! Its is a fact you can buy candy,soda and even energy drinks with foodstamps!!! And I honestly do know a couple liquor stores in poor neighborhoods that will illegally sell beer and cigarettes with ebt so that's not a myth, not leagal,but more common than you think

  40. * Food Stamps can be used on candy as well as sodas and other "junk foods". Many of those items add sales tax UNLESS you pay with EBT cards (at least in Texas)

  41. Social security is absolutely a Ponzi scheme and in current circumstances, obligations for boomers may be funded by their grandchildren. While you make many great points and provide considerable information, background and insight, sometimes you make statements which simply are not true.

  42. Minimum wage was created to keep adult workers who supply for their families, but a common argument against minimum wage at all is teenagers working part time won’t need the extra money, so, why not have minimum wage different for different types of work?

  43. The child tax credit is NOT supposed to pay for your kids for a year. Other taxpayers are not responsible for your decision to have kids when you can't afford them.

  44. A lot of what you said is wrong in the sense that to the laymen it may be technically true, but to the people who actually use these systems, there are plenty of cases where they operate somewhat differently in practice, or can be manipulated.

  45. Correction, the Obama phone is FREE if ur on welfare or disability or similar. They actually give u a free phone with a certain amount of mins and texts and now internet, but the companies who provide them have different amounts for each company.

  46. 11:56 – "any of these states" (shows a map with states in red or green)

    uh…which color are "these"? (I'll assume it's red.)

  47. I lost my job and my home. I had family and friends to fall back on. Family is extremely important and provide much better benefits than welfare. What if someone has no family? Well we have had private organizations that provide welfare for its members that fall on bad times. Welfare is about buying votes by replacing family and friends with government.

  48. "Food stamps are like the food pyramid without the top."
    At my place of work, people frequently use EBT to purchase soda and candy, so…

  49. 8:27 true but there are ways around using it directly. Back when they were checks people would go to grocery stores and by a single item like a single tomato or can of beans. They would then receive change in cash and keep doing this until they had enough money for a pack of cigarettes or beer.
    I also know some gas stations exploit welfare. A gas station on my reservation offered EBT to cover soda and slushies.

  50. Kurzgesagt translates to: In a nutshell. Which, they conveniently place below their name at the beginning of every video, so, I'm sure just calling them In a Nutshell, would be perfectly okay.

  51. Undocumented immigrants are the 2nd largest group who commit Social Security Fraud according to FBI statistics. So yes, they are a drain on social security.

  52. We live on 1200 a month since my husband's stroke in 2016. He finally got disability after two years. He was an electrician for over 30 years and I was a housewife and we raised three children. After the stroke I would have gone to work but he cant be alone for more than a couple hours. He also has no health coverage because our state doesnt have Medicaid for adults who havent been on disability for two years. He has one more year to go. Thank God our doctor has a sliding scale. Except now he needs a medicine that's 800 a month.

  53. Minute 8:00 is so false. I work in a 7eleven at a downtown area where all the homeless shop. They buy candy all the time at 3dollars per king size snickers bar.

    They used ebt to buy cigarrettes all the time. They just buy a soda then use their ebt card to get cashback, then right after use that cash to buy cigarrettes.

  54. Sorry mate, not a myth. Undocumented immigrants are definitely doing jobs that Americans could be doing, and Americans not having work = Americans on welfare.

  55. But if we make a UBI and people do decide to quit their jobs and live right at the poverty level.. what about all the loss of tax money that helps fund UBI that they were paying the feds? I have a 3rd grade economics level of understanding but where does the money come from for a UBI?

  56. Using snap for booze and cigs is not a myth

    When someone buys their bread on the government dime and then buys their booze with their own money what are we really paying for?

    Unless that person was not going to buy food with their money the government may as well have just bought their booze for them

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