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Stimulus: *additional* welfare cost of $523 billion?

From Robert Rector of the Heritage Foundation (link):
The recently passed U.S. House of Representatives stimulus bill contains $816 billion in new spending and tax cuts. Of this sum, $264 billion (32 percent) is new means-tested welfare spending. This represents about $6,700 in new welfare spending for every poor person in the U.S.

But this welfare spending is only the tip of the iceberg. The bill sets in motion another $523 billion in new welfare spending that is hidden by budgetary gimmicks. If the bill is enacted, the total 10-year extra welfare cost is likely to be $787 billion.

The claim that Congress is temporarily increasing welfare spending for Keynesian purposes (to spark the economy by boosting consumer spending) is a red herring. The real goal is to get "the camel's nose under the tent" for a massive permanent expansion of the welfare state.
I'm hardly an expert on this field, and I don't know how to evaluate the details at the link or the ones outlined here.
Other tags: mickey kaus · stimulus plan

Sun, 02/08/2009 - 13:30 · Importance: 6

Sun, 02/08/2009 - 23:31

Where did I see a video of Obama promising to increase the Earned Income Tax Credit...which is welfare on steroids!