The Broken Welfare System…Can It Be Fixed?

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welfarefraud

We’ve all seen it. The “poor” in line at our local shopping market paying for lobsters, or filet mignon with their EBT card. We hear reports of people using their welfare cards at strip clubs and buying liquor at liquor stores.

The list of welfare fraud goes on and on.

Welfare payments issued to recipients long after they were listed as dead. Multiple recipients using one Social Security number — and multiple Social Security numbers being used by one person. Electronic benefit cards from Massachusetts being used in places like Hawaii, Las Vegas, and the Virgin Islands. Tens of thousands of blank EBT cards missing from state welfare offices. Repeated requests for “lost” benefit cards to be replaced.

In a report that covered only a two-year period, Bump’s investigators identified at least $18 million in illegal or suspicious welfare payments. “It pains all of us,” Bump told reporters, “to think that the program’s integrity is not being maintained.”

If this sounds familiar, it should. Blistering exposés of welfare fraud and abuse, in Massachusetts and elsewhere, have become almost routine.

Over a 22-month period in New Jersey, that state’s comptroller disclosed last week, prison inmates collected almost $24 million in unlawful welfare benefits — including $10.6 million in unemployment checks and $4.2 million in food stamps. TV reporters in Florida documented the use of electronic benefit cards in strip clubs, liquor stores, bowling alleys, and bingo parlors. A 65-year-old cashier in New Hampshire was fired last year for refusing to let a young man use a benefit card to buy cigarettes.

The new Massachusetts audit, meanwhile, followed an earlier report by the state’s inspector general, who estimated that the state is squandering $25 million a year on improper welfare payments. And before that was a national investigation by the US Department of Agriculture, which administers the food stamp program. It uncovered fraud in every state it reviewed.

Is welfare corrupt? Is it ever.

Every attempt to reform this fraud is shot down by Democrats. Hell, even attempts to stop the card from being used at strip clubs was shot down.

This problem could be solved easily and pretty quickly but the problem is that politicians really don’t want to do anything about it. Dependency on government is what they want and if that means millions of our dollars get wasted…so be it.

An audit last year by the US Department of Agriculture’s ­inspector general found problems with food benefits in all 10 states it reviewed, including more than 27,000 recipients who appeared to be dead, used a deceased individual’s Social Security number, had erroneous Social Security numbers, received benefits in multiple states, or were otherwise disqualified from receiving the benefits.

and

the federal government disburses $6.3 billion every month — $76.1 billion a year — in welfare payments for just the SNAP program. Adding in TANF (Temporary Assistance for Needy Families) brings the totals to $7.6 billion per month and $92 billion per year….these numbers don’t include the cost of unemployment or disability benefits, which are equally subject to abuse and deception. This also does not include the cost of the government employees who work to distribute these funds. A few quick calls and some Google searches and we discovered the cost of distributions is nearly 40%. This means that the total cost to the taxpayers is 40% higher than the actual cash distributions.

…Sources say the incidence of fraud is as high as one in four beneficiaries. Unbelievable — but all too possible.

This means $23 billion per year — nearly $2 billion a month— is going into the hands of criminals and scam artists.

The writer above, Tomthy Imholt and David Forsmark, come up with a simple solution. Use technology. If the NSA can use today’s technology to capture everyone’s phone habits than I would think our government could use it to stop welfare fraud:

The Massachusetts legislature recently discussed one possible solution: Putting picture IDs on EBT cards. This would allow checkout-line clerks to immediately see if the person presenting the card is the rightful owner….This seemed like a fantastic solution until lawmakers realized that self-checkout lines have become common in modern America. A scammer seeking to use an EBT card illegally could escape detection by using a lane unstaffed by a human clerk.

There is, however, a better way to fight fraud. Today’s technology can put fingerprint scanners on something the size of a credit card; the chips and memory needed to operate the device easily could fit where the hologram is on most of your credit cards. Credit and debit-card swipe machines already can handle this, so there would be no cost to the store or extra hassle to the user to put this system into place.

This plan, if enacted, would solve a number of issues.

First, the system could be set up so no one gets two cards. If two cards have the same fingerprint, one — or both— could be deactivated.

Second, no one could sell his or her card for cash to buy drugs or alcohol. Only the person to whom it was issued could use the card. (In the case of shut-ins, the card holders could designate an authorized user to buy groceries on their behalf.)

Third, no one could use the identity of a dead person to defraud the system for years without challenge.

Our benefit system must be saved to continue to serve the truly needy. Our leaders must use technology — our most effective and efficient resource — to stop those defrauding the U.S. taxpayer. Fingerprint technology is here, can easily be implemented, and shouldn’t cost more than $10 per EBT card.

Stack up the one-time cost of $230 million for our proposed system against potential monthly fraud of nearly $2 billion. If you know of any other investment that will pay a 1,000 percent return on a monthly basis, please call us.

Before a politician challenges this idea because the numbers might be a little off, look at it this way: Even if the cost of implementation is 10 times higher than our estimate, the fingerprint card would pay for itself in one month. All subsequent savings would go to the taxpayers while assuring that the proper resources would go only to the truly needy. Keep in mind, too, that like all technological advances, this one will also get cheaper with time.

I get fingerprinted 4-5 times a week…and that’s just to use my gym.

Getting handouts from taxpayers should be just as difficult, meaning not difficult at all. It’s a simple solution.

Will our elected leaders back it tho?

I’m doubting it. They want to get re-elected and the more people they get on the government dole the better. It’s just like voter ID. Why clean up a system so obviously broken when in the end it benefits them.

Hell, it wouldn’t even stop millions of illegals from getting benefits.

We’re on a downward spiral here. We used to look down on government dependence….how far we have come:

Is this any way to help the poor? FDR didn’t think so. In his annual message to Congress in 1935, President Roosevelt warned that “continued dependence upon relief induces a spiritual disintegration fundamentally destructive to the national fiber.” The father of the New Deal knew that “to dole out relief in this way is to administer a narcotic, a subtle destroyer of the human spirit. It is inimical to the dictates of a sound policy. It is in violation of the traditions of America.”

It is a mark of how far we have declined that a political figure who dared to say such a thing today would be denounced as heartless, a hater of the poor, even a racist — as Newt Gingrich found out when he tried to make an issue of soaring food stamp rates during the presidential campaign.

Exit video:

[youtube]http://youtu.be/a780LGWG7to[/youtube]

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Gee, if you go to Disney or Universal Studios, you need to tie your entry card to your finger print. There is also a means for using the purchasing data of grocery stores to id purchases of people using the cards. I actually say a clerk in Publics going over every item in the cart to make sure they were acceptable items. It only takes a few visits to the grocery store in your neighborhood and a citation or two and every store will be implementing the program properly. Now, there is no need if no one cares.

Ebt cards need a PIN to be used. It can only be used with the correct PIN. If an EBT card is lost or stolen it can not be used without its PIN, and the real owner can change that PIN easily. 50% of all SNAP benefits go to children. About 10% go to the elderly. 40% go to working poor. About 1% are sold for cash. I have never seen lobsters bought with an EBT card. I am sure it HAS happened but I do not consider it a big problem. But with last summer’s wholesale lobster price in Maine below $1.70 bucks a pound (check the Wall Street Journal article if you wish) it may happen more frequently than I imagine.
One of the biggest new groups applying for SANP cards are recently discharged vets. With 50% of those who deployed to either Iraq or Afghanistan currently applying for some permanent disability, they are amongst the groups most increasing in size. And also having an unemployment rate double that of non vets, makes their use more frequent. Google SNAP frequently asked questions for more info.

Happens mostly in “edge” neighborhoods, John. Where there is a lot of poor and then it feathers into median or upper income. I have seen it a lot in Houston, you just need to slum a little more. You would be surprised at the number of new Esclades with 24″ wheels that roll up to the Mom & Pop and pull out the Texas Card to buy snacks.

The Fair Tax takes care of the poor. This is from their web site at http://www.fairtax.org/site/PageServer?pagename=FAQs

and under:

PERSONAL RELATED
How does the FairTax protect low-income families and individuals and retirees on fixed incomes?

Under the FairTax Plan, poor people pay no net FairTax at all up to the poverty level! Every household receives a rebate that is equal to the FairTax paid on essential goods and services, and wage earners are no longer subject to the most regressive and burdensome tax of all, the payroll tax. Those spending at twice the poverty level pay a tax of only 11.5 percent — a rate much lower than the income and payroll tax burden they bear today.
Under the federal income tax, slow economic growth and recessions have a disproportionately adverse impact on lower-income families. Breadwinners in these families are more likely to lose their jobs, are less likely to have the resources to weather bad economic times, and are more in need of the initial employment opportunities that a dynamic, growing economy provides. Retaining the present tax system makes economic progress needlessly slow, thus harming low-income people the most.
In contrast, the FairTax dramatically improves economic growth and wage rates for all, but especially for lower-income families and individuals. In addition to receiving the monthly FairTax prebate, these taxpayers are freed from regressive payroll taxes, the federal income tax, and the compliance burdens associated with each. They pay no more business taxes hidden in the price of goods and services, and used goods are tax free.

Those states ALLOW this to Happen!! In MY state.. EBT cards can ONLY buy FOOD… and NOT PREPARED food at that!! Meaning, a FROZEN chicken, but NOT Deli Fried chicken from the same store. No Liquor, smokes, or any NON FOOD items… why do THOSE states allow it???

I think they should begin working on a new system. Once that new system is made, they should completely abolish the old one and start brand new. If you want services, you need to apply again. They should drug test and make new rules, such as only 2 children will be covered. If you choose to have more, you need to support them yourself. Old people, I don’t mind. They can’t work much. It’s the people leeching off the system. I live in a low income neighborhood. I have seen people use their EBT card in exchange for cash, buy cigarettes and alcohol.

@Mercedes: They need to make ALL STATES, have IDENTICAL regulations on it. In Missouri for example, it’s FOOD ONLY on the EBT, nothing else. Why other states ALLOW Cigarettes etc is beyond me! ALSO.. Birth Control, should be MANDATORY if you are on Public Assistance, If the TAXPAYER has to FUND YOU, you have NO RIGHT, to bring ADDITIONAL DEPENDENTS into the world!! Also, if UNMARRIED, the name(s) of the FATHER (S) of your kids, has to be given, so THEY can be gone after. If they are “bums” they can work off the debt, on the State/County WORK FARM for 18 years! enough.

@Mercedes: #6
I forget where it was, but many years ago, a community started a policy that if someone applied for welfare, they had to pick from a list of available jobs and pick one. The welfare recipients figured that if they have to WORK for their welfare check, they might as well work at a better job, and they got off of welfare.

So many of them did this that the workers at the welfare agency saw that their jobs were in danger, so they sued, saying the welfare recipients can’t be made to WORK for their welfare checks, and they won. I would rather pay the welfare works who got ALL of the welfare recipients off of welfare to stay home and get their paycheck, than to keep paying more and more to people who DON’T want to work.

Politicians (democrats and republican) use the welfare system to get votes. If you are on welfare, and a politician will promise you more money NOT to work, the more you are likely to vote for them. This is another way politicians spend YOUR money to get votes. The politicians are using YOUR Social Security retirement money to buy illegals to vote for them. You don’t need YOUR SS money as much as the politicians do. YOUR TAX DOLLARS AT WORK FOR THE POLITICIANS.

@Hankster58: #7

Birth Control, should be MANDATORY if you are on Public Assistance….

If that is enacted, where will future democrat voters come from?

Obama will be touting his part in the ”economic recovery,” this week in three speeches.
This is his 19th pivot back to jobs, btw.
But what has he accomplished?
White House Press Secretary Jay Carney said yesterday that the Obama administration has pulled the nation from the depths of the “Great Recession” with the creation of 7.2 million private sector jobs.
However…..
There are 15 million more Americans on food stamps today than when Obama assumed office.
http://frac.org/newsite/wp-content/uploads/2009/09/snapdata2009_january.pdf
http://www.fns.usda.gov/pd/34SNAPmonthly.htm
You do the math.
Obama has put TWICE AS MANY Americans on SNAP as he has into jobs!
Also, during Obama, 9.5 million Americans have stopped looking for a job.
A total of just over 90 Million Americans over age 16/under age 65 are not working at any job today.
The ”New Normal” is a part-time job!
Obama had seen fit to not mention how at least 2 million of his 7.2 are only part-time jobs.
And most part-time workers would prefer full-time jobs.

@Nan G: #10
More people are watching Fox News and going to the Internet obama told us not to go to, so they are learning not to believe much of what obama says. We still have to go to the Internet for the stories even Fox News isn’t telling us about obama. For example, why isn’t Fox News covering what is going on about obama’s fake birth certificate, his using someone else’s Social Security number, him having 39 Social Security numbers attached to his name, or his Selective Service registration card (draft card) has been declared a fake?

The democrats know that the more people they can get on any welfare, the more votes they will probably get. Unfortunately, the republicans have learned the same lesson, so they are going along with it to try to get the welfare recipient’s votes.

@Smorgasbord: Hey, NOT OUR PROBLEM!! LOL!

#12

Hey, NOT OUR PROBLEM!! LOL!

Since I’m retired, it mostly isn’t my problem, but when the Social Security money congress is giving away runs out, it will be my problem, and I intend to live long enough for it to run out.

If the politicians really cared about our retirement, the original Social Security law would have been a mandatory retirement fund each person paid into, and it would be THEIR money, like the 401(k) program. If they died before retirement, their beneficiary would get the money. The government wouldn’t have to pay anything. If something like that had been started instead of how it was, the average retiree would have several million dollars at retirement age, or could retire at a younger age if they wanted.

I only know general math. For those who know how to figure it, take an amount that would be about the average payment into Social Security each paycheck. Figure a reasonable interest rate. If an individual would invest that amount with each paycheck until age 65, how much would they have? I know it will be several million. Where did all of my money go?

@Smorgasbord: I was referring to your comment “where would FUTURE democrats come from” ! THAT, is NOT “our problem”.. all the REST IS!

@Smorgasbord: @#12 Where?? They SPENT IT! WELFARE! Vote Buying Programs! Earmarks! Congressional PERKS! Also , that would include Money Obama has “thrown away” on his Green agenda, which DID buy votes for him too. THERE is where YOUR MONEY went.. a INTEREST FREE LOAN, for FED PANDERING….. Hence the reason i make sure NOT to “overpay” my income tax, THAT is ANOTHER way the feds get “interest free loans” for a year… what do people think a “refund” was?

@hankster85 the state doesn’t actually “allow” people to buy cigarettes and such but people work around the system. If its in the “neighborhood” the deli guy just has to ring up lets say $20 and the state has no idea what was purchased. Meanwhile, it was a six pack of beers. another scam in the neighborhood is…”charge my card $50, and give me $40 in cash”. I’ve seen it done. people on welfare eat better then anyone! If go to the supermarket for cookies, I would have to look for the cheaper brand… While the person on welfare can get Oreos (just an example lol). I can’t stand it. They’re the ones with all the new phones that come out but can’t afford food? Something needs to be done to stop the ones who abuse the system.

@Hankster58: #14
Thanks for the clarification. I really don’t care if they find any more democrats. I also don’t care if the republicans cant’ find any more members. It’s time for WE THE PEOPLE to take back OUR congress. That sounds like a good name for a new political party.

@Hankster58: #15
Let’s not forget about the billions of dollars the politicians are spending on themselves with their pork barrel spending, all of the military bases the Pentagon DOESN’T want, and all of the property that the government owns and is renting that they are not using.

@Mercedes: #16
One major problem with the welfare system, is that there are many welfare agencies, and they are not connected to each other so they can know how many agencies the recipients receive money from.

@Smorgasbord: #19.. this is why, the Founders set up SMALL FED Governance, and Bigger LOCAL Governance.. local, is BETTER for managing us, than a FED who is 2500 miles away, to too BIG, to know what the other guys is doing!

@Mercedes: #16.. that goes back, to WEAK PENALTIES for those who both COMMIT, and ALLOW fraud. This is true across our whole legal system today! Time we STOP “babying” bums, and do some SERIOUS ass kicking.

@Hankster58: #20
The bigger the government, the harder it is for WE THE PEOPLE to keep track of what our government is doing, and it gives the politicians more power over us, and it gives guaranteed votes to whichever party guarantees them their job and pay raises.

I’m guessing that the average politician can’t name all of the departments in our government, and which ones do the same thing. For example, how many agencies are there that give out welfare?

@john:

You have not seen anyone buying lobster? I work as a cashier and see people buying $300.00 worth of meat and that is on one belt, on the other it is all junk food and NONE of it is for children! PLEASE go to your local store on the 1st and witness! You are totally in the dark! And they use many EBT cards for ONE transaction! Should there not be a red flag raised??????? It is pathetic and so corrupt and WE the tax payers are paying for this all! I see 20 year old coming in to buy rock stars and candy on a daily basis! How do they get this when they are perfectly able to work??????

Wake up already!