More Government Payouts – The President Looks to Buy Votes

The government payouts just keep on coming.  Yesterday President Obama announced that he will ask Congress to provide $250 payments in 2010 to 57 million Americans including seniors, veterans and people with disabilities.  These latest payouts will cost us a mere $13 billion.

Why is the President suggesting the additional payout?  Because with the low inflation rate there will be no cost-of-living increase for Social Security recipients in 2010.  But, that’s exactly the way it’s supposed to work.  There is no need for an increase in 2010 because there is no inflation to lower the buying power of Social Security’s monthly payments.  That’s not good for President Obama.  Change the rules in midstream and never pass up an excuse to throw taxpayer money around.  According to the President:

“These payments will provide aid to more than 50 million people in the coming year, relief that will not only make a difference for them, but for our economy as a whole, complementing the tax cuts we’ve provided working families and small businesses through the Recovery Act When the administration was asked in a briefing how they would pay for the latest handout, they did not have an answer.”

There are so many problems with this latest (and ongoing) government payout to list in a short Blog.  A few of key problems should suffice:

• The government is making one payout after another, yet the unemployment rate continues to increase.  Isn’t it time for a new strategy?
• Social Security recipients get the benefit of a cost-of-living increase when inflation hurts their buying power.  Why should they get an increase when there is no inflation?  Why do these recipients deserve a government kickback over other Americans?
• The country is running $1 trillion plus deficits.  We are no longer spending our own money on the handouts and entitlement programs.  What gives us this right to spend future generations’ assets?
• By going from one handout to the next the government is creating an atmosphere where people, companies and organizations wait for a government bailout rather than seeking long-term solutions to their individual challenges.  This will only perpetuate the economic downturn.

It is easy for politicians to spend other people’s money.  While some may have good intentions, there are more insidious plans at work.  Politicians realize that handouts buy them votes.  It is not coincidence that President Obama makes this latest handout offer to mainly older citizens.  He needs their support for to pass his expensive healthcare reform program.

There is no such thing as a free lunch.  Sooner or later the massive deficits we are running will challenge our country’s economy even more than the current downturn.  And then we will have no funds for that rainy day.