Milwaukee Biz Blog: Protect federal social programs

Most have a proven cost-benefit to society

“A billion here, a billion there, pretty soon, you’re talking about real money.”

This quote was misattributed to Senator Everett Dirksen. He claimed a newspaperman created it. But he liked the quote so he did not deny it.

Today an inflator is needed to a “trillion here, a trillion there” since Republicans have created (in my opinion) an additional $2.1 trillion in debt to our staggering current debt of $17.3 trillion (2015).

These opportunists have convinced themselves that their tax cuts plus a trade war will stimulate an economy currently at full employment. Corporations have stockpiled cash for years. They don’t see opportunities to invest in the U.S. since an aging population has reduced demand for goods.

But be patient. They have a more nefarious goal. They plan is to reduce support to widows, orphans and the disabled.

There was a political ad years go where someone like Paul Ryan shoved a wheel-chaired old lady off a cliff. People thought it was exaggerated, but Paul Ryan and others like him have long wished an end to social security, Medicare, Medicaid, and other programs that support people.

Ironical the cost benefit of most of these programs have proven their social and economic value.

But many Republicans have an attitude that those “just getting by” should fend for themselves. They say “Let ‘Em Eat Cake!”

They have created expensive increases in programs like Medicare Part D for drugs to eliminate social programs. The trickle down tax reform plan they just passed is a good example of this tactic, with its added $2.1 Trillion 10-year deficit. Were “loopholes” like carried interest closed or abuses like syndicated “conservation easements” banished? No way.

Florida’s Senator Rubio opined that we have “to generate economic growth, while reducing spending. That will mean instituting structural changes to social security and Medicare for the future.” Praise him for being candid. Curse him for layering on the long term deficit to people.

Most social programs have a proven cost-benefit to our social wellbeing and the economy. Spend a little on pre-natal and post-natal care now and save massive medical and social costs in the future. For every $1 spent in SNAP (food stamps) $1.84 goes into the GNP, according to the U.S. Department of Agriculture. Public health outreach for the poor directly benefits the middle class and wealthy. Often the health problems the poor have are passed to the rest of society.

On the other hand, only 30 cents comes back into the GNP for every $1 given to wealthy folks (like me). This should not be hard to figure out. The wealthy have most of their needs met. Many choose to live modestly, but most will not immediately spend more money.

Our social supports have helped many overcome family tragedy and lift themselves from poverty.

Education spending does increase a person’s ability to work and be productive. Could tax money be better spent? Of course. For minorities and the poor, the use of computers as teaching “aides” has proven itself. For foster kids, mentoring has proven to be the difference between success and failure. Letting teachers teach more and do less paperwork is a formula that should be pursued.

Many in our society have benefited from programs. Congresswoman Gwen Moore worked herself through school to obtain a college degree. She was a single mother on welfare. Senator Linsey Graham’s parents died. He used social security to keep his sister out of an orphanage. Congressman Jim Sensenbrenner’s advocacy for the disabled and disability rights probably stems from his wife’s disability.

I served in Vietnam and chaired the Milwaukee Stand Down for Homeless Vets. Then as now many of the homeless served in the military. The estimates are about 30 percent. Some of the homeless use drugs or alcohol and others have mental illness. You see these folks on the streets, but most flit from home to home. A few cities have created housing with care to help these folks. They find that it is cheaper to do this and, more importantly, more effective. This is an example of better spending.

As a businessman, I have found it ironic that a part of our society truly resents social services. Perhaps they believe that only minorities make up those on welfare (although whites are the majority). Many also are wedded to the belief that everyone should work forgetting the barriers of transportation and education, as well as race. Many of these same people avoided the draft in wartime; let the others do it!

Those who have been touched by adversity in their own lives understand these struggles.

What are the reasons behind the refusal to help others? Is it the raging deficit? If so, why the massive deficit that Republicans have created? Is it a perception that everyone can pull themselves up by the bootstraps? It is a puzzle.

Yet here we are. The attitude among many Republicans and conservatives is “let ‘em eat cake.” That approach is bad for our society.

Bob Chernow is a Milwaukee businessman.

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