Welfare worth more than $15 per hour job in 12 states

According to a report released in August by the libertarian Cato Institute, when the full package of benefits is taken into account, welfare pays more than a minimum wage job in 33 states. In 12 states, welfare pays more than an equivalent job that paid $15 per hour. In these states, the report notes that an individual who left the welfare rolls for a job paying the same amount would see a decline in take-home pay.

The report, the “Welfare vs. Work Trade Off,” notes that because welfare benefits are not taxable, their value is greater than the equivalent value of pay and benefits from an entry level job. This difference is partially offset by tax credits such as the Earned Income Tax Credit (EITC), the Child Tax Credit (CTC) and various state tax credits. In some states, Cato notes, the combined value of the tax credits can be more than the value of taxes paid so the worker would receive a tax refund larger than their actual tax bill. In twelve states, however, the worker would have to earn more than the value of welfare benefits to bring home an equivalent income. These states include Hawaii, Massachusetts, Connecticut, New York, New Jersey, Rhode Island, Vermont, New Hampshire, Maryland, California, Oregon, and Wyoming, as well as the District of Columbia. In Georgia, a salary of $14,060 would replace welfare benefits.

The report also estimates the value of welfare benefits in terms of an hourly wage equivalent. In 33 states, welfare benefits are worth more than a minimum wage job. In the same 12 states and the District of Columbia, welfare is worth more than a job that pays $15 per hour. In Georgia, welfare is equivalent to an hourly wage of $6.76.

In other terms this means that in 42 states and the District of Columbia, welfare recipients live above the federal poverty level. In Hawaii, Massachusetts, and the District of Columbia, welfare recipients make more than twice the federal poverty level. In Georgia, welfare benefits are at 101 percent of the federal poverty level.

There are 126 federal programs targeted toward low-income Americans. Of these, 72 provide either cash or individual benefits. Such programs include Temporary Assistance for Needy Families (TANF), Medicaid, Supplemental Nutrition Assistance Program (SNAP) food stamps, WIC vouchers, public housing, utility assistance and cell phones. Fraud is rampant in many programs.

The Cato study comes as the Bureau of Labor Statistics reports that the Civilian Labor Participation rate fell to 63.2 percent. According to CNN Money, this is the lowest percentage of Americans “over 16 who either have a job or are actively searching for one” since August 1978.

Michael Tanner, senior fellow at the Cato Institute, notes that work imposes other costs aside from taxes and lost benefits. People who choose to work will have to pay for clothing, transportation, child care, and will have less leisure time.

“To be clear: There is no evidence that people on welfare are lazy,” Tanner said. “Indeed, surveys of them consistently show their desire for a job. But they’re also not stupid. If you pay them more not to work than they can earn by working, many will choose not to work.”

Tanner notes that even though this may make financial sense in the short term, low wages for entry-level jobs eventually lead to better paying professional positions.

Find out where your state stands on welfare benefits HERE.

Originally published on Atlanta Conservative Examiner

July jobs report not rosy in spite of unemployment decline

The July Jobs report from the Bureau of Labor Statistics unveiled a headline unemployment number that edged down slightly to 7.4 percent as the economy added 162,000 jobs. In spite of the decrease in the overall unemployment estimate, the report does not paint a bright picture for the jobs market. A forecast of economists by Bloomberg had predicted an increase of 185,000 new jobs.

Buried in the report, the Civilian Labor Force Participation Rate actually fell from 63.5 to 63.4 percent as job creation did not keep pace with population growth. According to BLS historical statistics, the rate reached a recent high in January 2007 at 66.4 percent before the onset of the recession. The rate has continued to decline during Barack Obama’s presidency from 65.7 percent in January 2009.

It might seem inconsistent that the labor participate rate declined at the same time that the unemployment rate fell. The answer can be found in the report’s measure of discouraged workers, people who are “not currently looking for work because they believe no jobs are available for them.” The number of discouraged workers rose sharply to a total of 416,000. The 136,000 increase in discouraged workers who dropped out of the workforce is almost equal to the number of workers who found jobs. The U-4 unemployment rate which adds discouraged workers to the headline unemployment rate is at 8.0 percent.

More bad news is that the number of workers who hold part-time jobs increased as well. This includes workers who work part-time for economic reasons such as the inability to find full-time work or declines in demand as well as those who work part-time because of noneconomic commitments such as family or school. These workers are considered “marginally attached” to the workforce. The U-6 unemployment rate which includes both discouraged and marginally attached workers is 14 percent.

As more part-time workers entered the work force, the average work week shortened to 34.4 hours, 0.1 hours shorter than June. The average work week for production employees was even shorter at 33.6 hours. Similarly, earnings for all employees fell by $3.09 and for production employees by $2.02.

Overall, the Yahoo News noted that 65 percent of the new jobs were part time. The industries with the largest numbers of new jobs were in low-paying sectors such as retail (47,000) and restaurants and bars (38,000). Professional and business services also added 36,000 new jobs.

One reason for the increase in the rate of part-time jobs created is the Affordable Care Act. New employment taxes in Obamacare encourage companies to avoid hiring full-time workers that will be subject to the provisions of the health care law that is scheduled to go into full effect in 2014.

Fifty-two percent of the unemployed have been out of work for more than 15 weeks. Thirty-seven percent have been unemployed for more than 27 weeks.

A final item in the report notes that employment figures for May and June were lower than previously estimated. These numbers were revised down by a total of 26,000 jobs.

Originally published on Atlanta Conservative Examiner.

Obama’s imperial presidency

During the Bush presidency, the president was often accused by the left of acting unilaterally as an “imperial president.” It was charged that President Bush often ignored the will of the people and flouted the law with signing statements, acting more like a king than a president.

While the term has rarely been applied to President Obama, the current president’s actions have often been deserving of it. One of the most egregious examples of President Obama’s disregard for the rule of law and the Constitution was his decision to appoint three new members to the National Labor Relations Board and a head to the new Consumer Financial Protection Bureau last week. Obama styled the appointments as recess appointments although neither the House nor the Senate was in recess.

Article II section 2 clause 3 of the Constitution gives the president the power to fill vacancies that occur while the Senate is in recess. These recess appointments escape the immediate need to be confirmed by the Senate, but expire at the end of the next session of Congress.

Article I section 5 clause 4 states that neither house of Congress can adjourn for more than three days without the consent of the other. This is done by passing a resolution in both the House and the Senate. In this case, there is no disagreement that Congress was not formally recessed since neither the House nor the Senate had passed a resolution to end the session.

President Obama’s claim is that since Congress was not conducting business, he met the constitutional requirement. In the New York Times, White House counsel Kathryn Ruemmler said that “the Senate is functionally in recess,” even though neither house had passed a resolution to end the session as required by the Constitution. In fact, Congress acted on the president’s payroll tax bill only a few days before Christmas and had considered other legislation as well.

The recess appointments were a reaction to the failure of the Senate to confirm a number of Mr. Obama’s nominees including Richard Cordray, the nominee to lead the new consumer protection bureau. Republicans had filibustered Cordray’s nomination last month over opposition to the lack of oversight of the new agency. It is worth noting that President Bush declined to make recess appointments while Congress was in session even though Democrats had filibustered a large number of his nominees as well.

President Bush also took criticism for launching the wars in Afghanistan and Iraq, but he did so with congressional approval in both cases. In contrast, President Obama not only launched his Libyan war without consulting Congress, but he also claimed that the War Powers Act, which requires authorization from Congress when U.S. troops are in combat for more than 60 days, did not apply.

In the past, President Obama has also ignored Congress and the legislative process on other issues as well. A year ago the Atlanta Conservative Examiner detailed how two of President Obama’s agency heads bypassed Congress. The FCC enacted net neutrality rules as administrative law after a federal court ruled that the FCC did not have the authority to regulate the internet. At about the same time, the EPA began regulating carbon emissions in the same manner after Congress failed to pass a cap-and-trade law.

There have been other legislative power grabs by President Obama and his regulatory heads as well. In a well-known case, the National Labor Relations Board filed a complaint against Boeing because the aircraft manufacturer, which is unionized at its Washington State plants, planned to build a new factory in South Carolina, which is a right-to-work state. The complaint alleged that Boeing was illegally retaliating for strikes by workers in the Washington factories. There is no law preventing unionized companies from opening new locations in right-to-work states. The NLRB and the union withdrew the complaint last month after Boeing’s union workers approved a new contract.

In one case, the Obama administration’s disregard for the law played into the hands of its opponents. After the passage of the Affordable Care Act, better known as Obamacare, the Department of Health and Human Services began issuing waivers that allowed favored companies and unions to keep their current health care plans until 2014. According to The Hill, over 1,200 organizations received the waivers. The large numbers of groups requesting waivers allowed Republicans to claim that the health care law was expensive and unworkable.

The problem is the ACA did not authorize the government to grant waivers or deviations from the new health insurance requirements. According to the Daily Caller, the Department of Health and Human Services granted itself the waiver authority in an apparent violation of the law. The article cites Heritage Foundation health policy expert Edmund Haisimaier who noted, “I count twenty-one other sections of PPACA [Patient Protection and Affordable Care Act] in which Congress did grant HHS explicit, new waiver authority with respect to specific provisions. Thus, it is reasonable to presume that if Congress had intended the department to institute a waiver process as part of its implementation of this particular provision, Congress would have said so in the statute.”

Another recent revelation from the Obama White House is reminiscent of Marie Antoinette’s “let them eat cake” moment from the French Revolution. According to a new book, “The Obamas” by New York Times correspondent Jodi Kantor, during the height of the Great Recession in 2009, the Obamas threw a star studded Halloween party. The N.Y. Post reports that the party, put on by Johnny Depp and Tim Burton, coincided with the release of Burton’s film adaptation of “Alice in Wonderland.” In addition to Depp’s Mad Hatter, the party also featured George Lucas’s emissary, the original Chewbacca, mingling with guests. The party was apparently covered up by the White House amid concerns about how it would look amid a time of recession and high unemployment.

President Obama’s tenure has resulted in unprecedented expansion of the powers of the executive branch. His overreach should alarm liberals as well as conservatives because it is likely that his practices will be continued by future presidents of both parties. Americans have a right to expect better of a former professor of constitutional law.

Read this article on Examiner.com:

http://www.examiner.com/conservative-in-atlanta/obama-s-imperial-presidency

Reflections on Ethan's Birth Day

It is July 27, 2008. Tomorrow morning is when my daughter, Sarah Elizabeth, is going to be born. I’m currently sitting in the terminal at Baltimore-Washington International and my flight is delayed to thunderstorms here and at home in Atlanta. My experience today reminded me of when my first child, Ethan, was born.

The time was February of 2004 and we were living in Florence, Kentucky where I was a First Officer with Atlantic Coast Airlines/ Delta Connection flying from the Cincinnati-Northern Kentucky International Airport (CVG). Debi and I had been going to frequent ultrasounds, and a couple of days after one of them, we received a call from the doctor’s office telling us that they thought that the most recent ultrasound showed a birth defect on the baby. We were instructed to come in for another ultrasound with a specialist at a neighboring hospital two days later and about a month prior to the due date.

I was off work when for the ultrasound, but was scheduled to work the following day. At the time, I was a reserve pilot at the airline, which meant that, even though I was on duty, I might fly and I might not. As it turned out, the company called and assigned me a trip for the day after the ultrasound. I was to leave CVG and fly through Boston to an overnight in Fredericton, New Brunswick, Canada.

We reported for the ultrasound together with our pastor, Steve, who came for moral and spiritual support. The technician started looking at the baby, making notes, and not saying a whole lot. Finally, the medical gurus told us that they were concerned because Debi’s amniotic fluid was low. For some reason, this reminded me of Lewis Grizzard’s book, If Love Were Oil I’d Be a Quart Low. Unfortunately, their solution was not to add a quart, they wanted to keep Debi in the hospital overnight and give her an IV to bring up her fluid level.

This caused a problem. I had a limited number of sick days. I had applied for FMLA for when the baby was born, but I was a regional airline FO. Regional First Officers are poor and FMLA is unpaid leave if you run out of sick time. I could not afford to be out of work long and I might have to miss more work days after the baby was born.

We talked it over and finally decided that since Debi would be going home in the morning, I should go on to work. I felt uneasy at the prospect of leaving my pregnant wife in the hospital, alone and eight hours away from both of our families. As I was about to leave to go home and pack my bag for Canada, a nurse nonchalantly told me, “You might want to wait. I think you are going to have a baby in the morning.”

My reaction was basically, “huh?” This was quickly followed by the slightly more verbose, “are you serious?” She was.

I’m not sure who was more shocked: Steve or me.

I still really have no idea when or exactly why the doctor decided to induce labor. At the time, it really didn’t occur to me to ask. The next few hours are a blur of calling our parents and telling them that their grandson would be born the next morning, not a month from now, and, no, I wasn’t kidding. My parents had non-revenue/standby travel benefits from my company so I booked them on a flight to CVG. Debi’s parents set out on the eight-hour drive as quickly as they could pack.

The new plan was to have Debi spend the night in the hospital where they would monitor her and the baby throughout the night. They would induce labor with Poticin in the morning, then we would go home with a happy, if slightly smaller than expected, baby boy.

That afternoon, I went to pick my parents up at the airport and pick up Debi’s suitcase, which, she had already packed, thank goodness! Our carefully laid plans were all falling apart. We were having the baby a month early and in a completely different hospital than what we had planned. We had recently completed the nursery, but Debi had a baby shower scheduled at our church the following weekend. She had actually joked about not being able to go if the baby came early. Only now it didn’t seem very funny!

I spend that night at the hospital with Debi while my parent stayed in our apartment. Debi’s parents spent the night on the road between north Georgia and northern Kentucky. Ironically, Debi’s sister was also pregnant. She had set up a c-section for February 17, so Debi’s parents thought that they would have plenty of time between births. Now they were dealing with having two grandchildren within days of each other.

I remember the night of February 11, 2004 as being one of the longest nights of my life. On top of the anxiety of becoming a parent the next morning, Debi was trying to sleep with a fetal monitor across her stomach. She would get comfortable, then Ethan would move. The nurses would immediately realize that they were no longer monitoring the baby and come in to readjust the monitor, which would wake us up. I don’t know exactly how many times this happened throughout the night, but I’m sure it was at least a million.

Finally, morning came. With it came the nurses with Debi’s dose of Potocin at around seven o’clock. Not long after, Debi’s parents arrived just in time. About the same time, the medicine kicked in and Debi started having contractions. We were going to have a baby!

It wasn’t long after that that the doctors and nurses started looking worried again. Ethan’s vital signs were erratic whenever Debi had a contraction. He was going into fetal distress. The doctor thought that the umbilical cord was probably wrapped around his neck, which could cause major problems as the birth proceeded. Someone mentioned the possibility of sending Debi to Cincinnati Children’s Hospital, but my sweet, southern wife put her foot down: “I don’t want no yankee baby!”

The next thing that I knew, they were suiting me up in scrubs for an emergency c-section. It is probably a good thing that I had no idea this was coming; otherwise I would have been more nervous than I actually was. As it is, I was more numb than nervous.

In much less time than you would think, they had Debi in an operating room. When they had her settled, they brought me in and gave me a seat by her head. As I sat down, alarms started going off and the nurses and doctors looked up in alarm! They quickly determined that everything was all right; I had just sat on a cord going to the monitoring equipment. They told me to move. Stat!

The actual c-section was uneventful. It was a little bit surreal looking my wife’s organs being moved about by doctors. In no time at all, they pulled forth from her a baby boy.

The nurse asked if I would like to see my baby. I felt torn between staying beside Debi and going to Ethan, but she indicated that I should go. I don’t remember holding him then, but I went to the table where the nurses were examining him.

I remember hearing that babies often looked pasty at birth. Not Ethan. He was born looking as if he had a tan. I remember his head full of black hair and his blue eyes, as well as his really pronounced lips. I put my finger in his tiny hand and he grabbed it.

The nurses said that he was perfectly healthy. There was no sign of a birth defect.

Shortly after that, we were back into Debi’s hospital room with a new baby in her arms. Our parents said that we left so suddenly that they didn’t know where we went. You can imagine their shock when we showed up with Ethan in hand.

We did take the opportunity to play a practical joke on the grandparents. We (I) had toyed with several potential names, as all parents do. We considered Andrew Taylor, a nod to Debi’s maiden name and the Andy Griffith Show. I kept saying that we should name him Ezekiel and call him “Zeke.” Since his birthday, February 12, was Abraham Lincoln’s birthday, we told the assembled crowd in the hospital room that we had decided to name him “Abraham Ezekiel.” There were more than a few forced smiles in the room at that point.

An additional item that will be good blackmail material when Ethan starts dating came before we left the hospital. The name card on his basinet read in big blue letters: “I’M A BREASTFED BOY.” We definitely got a picture of that.

The story after that is routine. Ethan went home with us three days later. He was healthy in spite of being born a month early. At five pounds one point four ounces, he had virtually no body fat, so he ended up spending a night in the incubator after a checkup the following week.

A memorable moment was the first time I changed a diaper… ever. There in the hospital nursery, in front of doctors, nurses, and everyone, my newborn son peed on me. After that I learned to treat a little boy like a loaded weapon. Don’t point it at anything you don’t want to get shot and keep it holstered as much as possible.

And, oh yeah, the baby shower that Debi missed? The church people brought it to her after she and Ethan had returned home. It's a rare thing for a baby to be the guest of honor at his own shower!

So here I am four years later. Ethan is about to be a big brother. Debi is again wondering if I’ll be there for the big moment. The family is assembled and I’m just waiting on Air Tran to let me know when I’ll get there. All I can say is that if the eve of Sarah’s birthday is any indication, it will be an interesting experience.