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The Tipping Point

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America is reaching the point where too many people are receiving government benefits and not enough people are paying for those benefits, warns Rep. Paul Ryan in a recent WSJ article.

In 1970, the number of individuals receiving food stamps was below 10 million. In 2003 it had climbed to 20+ million. Last year, the number of individuals receiving food stamps was approaching 50 million.

As Ed Feulner points out in The Washington Times, “Today, the federal government operates more than 80 means-tested welfare programs that provide cash, food, housing and medical care to poor and low-income Americans.”

Because government produces nothing, it earns nothing. The only money government has is what it takes from taxpayers or borrows against the payments of future taxpayers. “Every dollar that government redistributes to someone, it must first take from someone else,” writes Mr. Feulner. Read here about the consequences of our escalating government largesse.

Everything government “gives” to one person or organization must be taken from another person or organization. Every dollar that government redistributes to someone, it must first take from someone else, and then deduct carrying costs before passing it on.

We can see some of the results of this in the 2014 Index of Culture and Opportunity, published recently by the Heritage Foundation. The index reports how food-stamp participation has soared over the past decade. From 2003 to 2013, it grew by more than 26 million people.

To show how much of a jump this is, consider that in 1970 the number of individuals receiving food stamps was well below 10 million. By 2003, it was just above 20 million. By 2013, it was fast approaching 50 million.

Meanwhile, the index also charts how total welfare spending has climbed, rising by $246 billion between 2003 and 2013. Today the federal government operates more than 80 means-tested welfare programs that provide cash, food, housing and medical care to poor and low-income Americans.

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Debbie Young

Debbie, editor-in-chief of Richardcyoung.com, has been associate editor of Dick Young’s investment strategy reports for over three decades. When not in Key West, Debbie spends her free time researching and writing in and about Paris and Burgundy, France, cooking on her AGA Cooker, and practicing yoga.