Tuesday, December 28, 2021

Dem dilemma

The dilemma facing the democrats is not knew as it has its roots in the New Deal. FDR passed 76 laws in his first 100 days most of which were designed to help people in the middle of the depression. This was possible because the democrats controlled both the house with 313 members and the senate with 60 members which was a super majority. The democrats then kept control of the government for the next 40 years and they realized that their control depended on offering benefits to the lower and middle income groups. This was all reinforced with the Great Society under Johnson. Now Biden is trying to become the second FDR with the Build Back Better (BBB) bill. The down side is that many democrats believe that people need government to get along or in other words they cannot take care of themselves. This is something that cannot be revealed to the public and thus the dilemma. The way to do this is to have the people pay at least part of the bill like social security even though the benefits they receive far outpace the price they paid. A good example is Medicare where the average person will collect $3 in benefits for each dollar paid in even though the employer paid in half of that. More recently benefits are offered without payment, things like child tax credit and earned income credit. Much of the BBB bill contains unpaid for benefits that resemble many of the current public assistance benefits. You are eligible not because you paid into the program but because of your income status.

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