Thursday, July 12, 2012

WELFARE SPENDING FROM 1900 - 2015


US Welfare Spending History from 1900



In 1902 governments in the United States spent very little on relief of the poor, including less than 0.2 percent on relief and 0.25 percent on health care services. In the early 21st century, governments spend over 8 percent of GDP on welfare programs, including health care for the poor.

A Century of Welfare Spending

Welfare spending began its ascent during the Great Depression.
Chart 2.61: Welfare Spending in 20th Century
Welfare spending started out at the beginning of the 20th century at 0.2 percent of Gross Domestic Product (GDP). It was not until crisis of the Great Depression that welfare expenditures began their rise, reaching 2 percent of GDP by 1940.
During World War II, welfare expenditures declined to about one percent of GDP per year, and fluctuated between one and two percent per year, depending on the business cycle. Health care expenditure amounted to about one percent of GDP. By the early 1960s, welfare cost about two percent of GDP, and health cost about one percent of GDP.
Chart Key:
 - Transfer to state and local
 - Federal direct spending
 - State direct spending
 - Local direct spending
The Great Society programs started welfare on an upward path, so that after 1980 welfare spending fluctuated between 3 and 4 percent of GDP. The joint federal-state Medicaid program, health care for the poor that began in the 1960s grew steadily, reaching one percent of GDP in the recession year of 1991. By 2005 Medicaid exceeded 2 percent and is expected to reach 3 percent of GDP by 2015. Other state and local health care expenditures cost about one percent of GDP, so that in the recession year of 2010 total expenditures on welfare, including all health care expenditures, reached over 8 percent of GDP.

Government Health Spending on the Poor

Governments spent up to one percent of GDP on health care for the poor until the 1960s. Now the total is reaching 4 percent of GDP. (This excludes Medicare, the federal health program for senior citizens.)
Chart 2.62: Medicaid and Government Health Care
Health care expenditures by governments, mainly state and local, began the 20th century at about 0.25 percent of GDP. By 1960, after a temporary decline in World War II, expenditures had reached about one percent of GDP. The joint federal-state Medicaid program began in the 1960s and increased steadily, year after year, and is expected to reach 3 percent of GDP by 2015. Other health care expenditures (mainly state and local) reached 1.25 percent of GDP in the early 1980s and have remained at that level ever since.

Governments Sharing the Cost of the Poor

When government spending on welfare began to expand in the Great Depression, it was mainly a state and local affair. But in the 1960s the federal government got into welfare in a big way.
Chart 2.63: Welfare Cost by Government Share
Prior to the Great Depression, non-health care expenditures on the poor were minimal, less than 0.2 percent of GDP. But in the Great Depression state and local governments sharply increased spending on welfare, with an initial boost from the federal government, and expenditures reached 2 percent of GDP in 1940. Between 1940 and 1960 welfare was mainly borne by state governments, with total cost fluctuating between 1 and 2 percent of GDP including a 0.5 percent contribution from the federal government.
In the 1960s the federal government started to dominate welfare spending, contributing about half of the 4 percent of GDP cost by the early 1980s and about two-thirds of the 5 percent of GDP cost in the Great Recession in 2010.

Saturday, October 22, 2011

Funny item on AGW

James Delingpole

James Delingpole is a writer, journalist and broadcaster who is right about everything. He is the author of numerous fantastically entertaining books including 365 Ways to Drive a Liberal Crazy, Welcome To Obamaland: I've Seen Your Future And It Doesn't Work, How To Be Right, and the Coward series of WWII adventure novels. His website iswww.jamesdelingpole.com.

Global warming is real

We know it's getting warmer. That's not the point

We know it's getting warmer. That's not the point

"The planet has been warming," says a new study of temperature records, conducted by Berkeley professor Richard Muller. I wonder what he'll be telling us next: that night follows day? That water is wet? That great white sharks have nasty pointy teeth? That sheep go "baaaa"?

No, the only surprising part of the results of the Berkeley Earth Surface Temperature Project is the good professor's chutzpah in trying to present them as new or surprising – let alone any kind of blow to the people he calls "skeptics" (or, when speaking to his friends at the Guardian, "deniers").

Here's the money quote from a ramblingly disingenuous piece he wrote in The Wall Street Journal, (which frankly should have known better than to fall for this guff):

Without good answers to all these complaints, global-warming skepticism seems sensible. But now let me explain why you should not be a skeptic, at least not any longer.

Let me explain what is going on here. And you can trust me: I'm not a climate scientist. What I am is someone eminently more qualified to deconstruct the semantic skullduggery going on here: a student of language, rhetoric and grade one bullshit.

In the first half of his piece, Professor Muller sets up his straw man. He does so by ascribing to "skeptics" views that they don't actually hold. Their case, he pretends for the sake of his wafer-thin argument, rests on the idea that the last century's land-based temperature data sets are so hopelessly corrupt that they have created the illusion of global warming where none actually exists.

No it doesn't. It has been a truth long acknowledged by climate sceptics, deniers and realists of every conceivable hue that since the mid-19th century, the planet has been on a warming trend – emerging, as it has been, from a widely known phenomenon known as the Little Ice Age. A period which in turn was preceded by the even better known Medieval Warming Period.

This is why the standard rebuttal to the term "climate change denier" is: "But I don't deny that climate changes. I recognise that it has done so since the dawn of time. What I question is not the process of climate change, but what causes is it, whether it represents a problem and whether there's anything we can do about it other than sensible mitigation."

But obviously, "Berkeley professor tells us nothing new under the sun" doesn't make such a good story. What's required in cases like this is a bit of judicious spin. So that's just what Professor Muller does: having first set up his straw man he then sets out to knock it down by revealing – ta da! – that whatever those pesky sceptics say the world definitely did get warmer in the Twentieth Century.

Except, duh! We know that. That's why sceptics are forever saying stuff like: "Yes, the planet did warm in the Twentieth Century. But only by about 0.7 degrees C, which is hardly a major threat". And: "Yes, the planet did warm in the Twentieth Century but what's your point? That there's some ideal, earlier colder average temperature that we should all strive to recreate by bombing our economy back to the dark ages?"

So why are notionally respectable journals like The Economist and New Scientist trying to make out that is a story is a seismic event which shatters forever the case of global warming sceptics?

Well, I suppose the polite possibility – perhaps my colleague Tom Chivers can help out here – is that they've simply never bothered to find out what climate change sceptics actually think.

My personal suspicion, though, is that springs from desperation.

The case for AGW theory has been getting weaker by the minute, as Marc Morano notes in this characteristically feisty summary of the current state of play:

The Antarctic sea ice extent has been at or near record extent in the past few summers, the Arctic has rebounded in recent years since the low point in 2007, polarbearsare thriving, sea level is not showing acceleration and isactuallydropping, Cholera and Malaria are failing to follow global warming predictions, Mount Kilimanjaro melt fears are being made a mockery by gains in snow cover, globaltemperatures have been holding steady for a decade or more, deaths due to extreme weather are radically declining,global tropical cyclone activity is near historic lows, thefrequency of major U.S. hurricanes has declined, the oceans are missing their predicted heat content, bigtornados have dramatically declined since the 1970s,droughts are not historically unusual nor caused by mankind, there is no evidence we are currently having unusual weather, scandals continue to rock the climate fear movement, the UN IPCC has been exposed as being a hotbed of environmental activists and scientists continue to dissent at a rapid pace."

Morano also, incidentally, has links to all those scientists – Pielke Snr, Lubos Motl, et al – pouring cold water on Muller's ludicrous claims. I don't think I've heard Morano sound quite so angry or contemptuous: "Muller's WSJ OPED is designed to confuse the public with perhaps some of the most banal and straw man arguments yet put forth by a global warming activist."

And I don't blame him.

What is going on is exactly the kind of utterly reprehensible dishonesty and trickery I anatomise more thoroughly in Watermelons. The Warmists lost the battle over "the science" long ago; that's why the best they can do now is resort to the kind of risible semantic ruse like this deliberate conflation of "global warming" with "man made global warming".

The two concepts are entirely separate: all sceptics believe in "global warming" (depending on what time scale you use); what they doubt to various degrees is the "man made" element. Richard Muller has crassly fudged this distinction to make a point which has nothing to do with science and everything to do with gutter politics.

And even more disgracefully, rather than pause to question this semantic skullduggery – as any half-way decent, responsible journalist should have done, on whatever side of the debate – ma

Friday, October 21, 2011

Five Problems with Wind Power

Five Problems with Wind Power

problems with wind power

There are many problems with wind power. It won't work for our country.

Five Problems with Wind Power

There are a few major problems with wind power, which proponents of this technology don’t want you to know about.

Problem with wind power #1. It isn’t that environmentally safe, at least according to environmentalists

This first major problem with wind power is exemplified by recent news.

We posted a story on our web site today on 35 windmills that have been shut down at night in western Pennsylvania because an “endangered species” bat was found dead at the base of one of the wind turbines. The wind farm can’t operate at night now until the bats go into hibernation later this year.

This is madness. If wind farms are one of only two sanctioned sources of energy by eco-freaks – the other is solar – then our nation is going to be in serious trouble in the future. But, even wind farms aren’t popular among the animal rights zealots because the turbines routinely kill birds and bats. In addition, those turbines require those “unsightly” power lines to transmit the electricity to homes, businesses, etc.

Problem with wind power #2. The technology contradicts itself

Brian Sussman, author of Climategate: A Veteran Meteorologist Exposes The Global Warming Scam, points out that wind farms are fragile and must be shut down when there are high winds. Why? Because the turbines will bend inward and snap. When there is no wind, there’s no power generated. So when production could be highest, the technology can’t work.

How’s that going to work in the long run?

Problem with wind power #3. Wind Power takes up excessive amounts of land

If these problems with wind power weren’t enough, the turbines take up vast amounts of land compared to regular power plants. Brian Sussman notes, for example, that the Comanche Peak nuclear power plant outside of Dallas produces 2,300 megawatts of power – more than needed to service 1.3 million homes. It fits into 8,000 acres of land. In contrast, the failed Pampa Wind Project promoted by T. Boone Pickens, was going to require 400,000 acres of land to produce the same amount of power. The Pampa Wind Project would also have required the construction of massive power lines and service roads. Pickens eventually dumped the project.

Problem with wind power #4. Wind Power isn’t cheap and never will be

Oh, but there’s more problems with wind power. James Delingpole, author of Watermelons: The Green Movement’s True Colors, describes the madness in Denmark. In that climate-alarmist paradise, there are 5,200 wind towers – one for every 1,000 residents. Is their electricity cheaper? No, Danes pay one of the highest electricity bills in Europe. Why? Because the government subsidizes it through a 50% tax on every kilowatt hour. The Danes don’t even fully benefit from these wind farms because Denmark exports 50% of its wind power to Sweden and Norway.

Why does this happen? Is it because Danish power companies hate Danes? No, this happens because wind power is unreliable. Denmark either has too much power or too little so these other nations must absorb their power surges. When wind isn’t blowing, the Danes pay for hydroelectric power from these other nations. They get taxed at outrageous rates for an unreliable power source and then have to get electricity from other nations as well.

Problem with wind power #5. Wind Power pollutes more than a coal plant.

Find that hard to believe? Watch this video by the American Traditions Institute about how wind power actually ends up causing greater pollution than a coal plant all alone.

The problem is that wind power doesn’t retain a steady rate of energy production, and relies on coal plants to fill in the gaps. But just like a car on the freeway gets better gas mileage and pollutes less than a car in the city, coal plants when running intermittently pollute much more. All because of wind power.

The madness must stop

The problems with wind power are many. Yet, the eco-freaks within the EPA and environmentalist activists continue to push for wind power as the solution to our nation’s energy problems. If this isn’t madness, what is? This craziness must stop.

Fossil fuels and nuclear power are reliable sources of energy – but not if the misguided eco-zealots at the EPA are successful in shutting down every energy source but wind or solar. Our civilization is doomed if they succeed.

Please comment below to start the discussion about wind power and what we can do to stop the EPA.

TAX REFORM THAT BITES YOU LATER

IRS Watch

IRS Watch

TAX PRACTICE & PROCEDURE

TAXES
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10/21/2011 @ 1:30PM |253 views

1986 Simplification Gives Birth To The Monster AMT We Have Today

The quest for simplification, lower rates and fairness in 1986 was a worthy undertaking, even if short lived. Included as a mechanism to achieve those lower rates was a reformulation of the minimum tax scheme in effect at that time in an effort to “broaden the base” of those subject to the tax. The tax rate increased from 20% to 21%, the basic exemption amount was changed and a revamped alternative minimum tax credit was introduced. It also brought a phase-out of the AMT amount for taxpayers whose alternative minimum taxable income (AMTI) exceeded certain limits.

Some would suggest the most significant change affecting the AMT at that time was modifications in the tax treatment of capital gains income under the regular income tax. The 1986 Act repealed the exclusion for long-term capital gains income and capital gains income was taxed in full under the regular income tax; it was no longer taxed as a tax preference item under the AMT. This change substantially reduced the number of taxpayers subject to the AMT initially. However, I believe the most significant change was the inclusion of family-related adjustments in the base of computing income subject to alternative minimum tax.

The mechanism to accomplish this treatment was to begin the calculation of AMTI after itemized deductions, but before personal exemptions. Schedule A itemized deductions for state and local taxes, miscellaneous deductions such as employee business expenses, a portion of deductible medical expenses and some residence interest deductions were added back to the AMT taxable base. Personal exemptions were eliminated, and in their place was an AMT exemption amount based on filing status, but subject to a high-income phase out.

Special Report: 25 Years After Tax Reform, What Comes Next?

AMT did not create a significant source of added revenue in the early years because the exemption amount was adequate to keep most middle-income taxpayers out of the system. Unfortunately that exemption amount was not indexed for inflation, and has only been increased permanently one time in the last 25 years, with the Revenue Reconciliation Act of 1990.

As the years passed and inflation-induced increases to taxpayer incomes occurred, more lower and middle income taxpayers became subject to the snare, even to the extent that Congress passed a permanent provision that allows Earned Income Credits to be applied to one’s AMT!

Alternative Minimum Tax became a Mandatory Maximum Tax.

Our Congress deems making a permanent change to the exemption amount “too costly,” so for the last decade temporary fixes have been made to increase the exemption amount a few years at a time. The current fix is set to expire at the end of 2011. Unless Congress acts again to place a band aid on the fistula, 34 million taxpayers will incur this tax in 2012.

Taxpayers are frustrated by now-you-see-them, now-you-don’t approaches to remedying the problems our tax system faces. They are tired of the uncertainty presented each time a short-term solution is placed to resolve a long-term problem. They are frustrated by a system that inappropriately targets young families struggling to buy their first home and care for their children.

Is there a lesson in this? Constant tinkering with one aspect of our tax system without a thorough analysis of overall interactions generates unexpected and unintended consequences. Simplification is complex.

Special Report: 25 Years After Tax Reform, What Comes Next?