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Chris
09-20-2012, 07:45 AM
To me this represents an economic problem inasmuch as it is a failure of society.

Since we find ourselves embroiled in a spirited discussion about the extent of dependency on government, the Heritage Foundation found it timely to remind us that it computes an Index of Dependency every year. The 2013 edition of this report is being tabulated now. It will come as no surprise to learn the dependency index has been rising steeply since the dawn of the Great Society, including sharp jumps in each of the last four years:
http://i.snag.gy/vwsSh.jpg

Read more at THE INDEX OF DEPENDENCE ON GOVERNMENT KEEPS RISING (http://www.humanevents.com/2012/09/19/the-index-of-dependence-on-government-keeps-rising/).

Captain Obvious
09-20-2012, 03:57 PM
http://blog.heritage.org/2012/09/18/index-of-dependence-on-government-jumps-for-the-fourth-year-in-a-row/?roi=echo3-13162635646-9736190-ff4a5816fb9c7c1155af5dea078da43b&utm_source=Newsletter&utm_medium=Email&utm_campaign=Morning%2BBell


The Index tracks government spending on the federal programs that breed government dependency. The Index rises 3.28 percent in next year’s report, for which 2011 is the latest year the underlying data are available. It is adjusted for inflation, so it rises or falls because of spending in real dollars. The updated Index reveals:


Government dependency jumped 3.28 percent in 2011, with the largest increases in higher education loans and grants and in retirement spending.
This is the fourth year in a row that the Index has risen, rising 31.73 percent in that time.
At the same time, nearly half of the U.S. population (48.47 percent) does not pay any federal income taxes.

head of joaquin
09-20-2012, 06:16 PM
The index is totally bogus and measures nothing but market evangelist insecurities.

In a modern economy "dependence" on government is unavoidable, and generally leads to a more productive society. The alternative -- malnurished and underprovided and uneducated children and elderly people -- is retrograde.

Chris
09-20-2012, 06:52 PM
The index is totally bogus and measures nothing but market evangelist insecurities.

In a modern economy "dependence" on government is unavoidable, and generally leads to a more productive society. The alternative -- malnurished and underprovided and uneducated children and elderly people -- is retrograde.

Nice emotionalism there, but it is avoidable. Stop growing government.

Peter1469
09-20-2012, 08:08 PM
Nice emotionalism there, but it is avoidable. Stop growing government.

How well off are people going to be when entitlement programs bankrupt the nation?

Chris
09-20-2012, 08:40 PM
How well off are people going to be when entitlement programs bankrupt the nation?

Reform the dependencies, end them. Making them bigger, creating new ones will only rush us over the cliff.

Deadwood
09-20-2012, 08:51 PM
The index is totally bogus and measures nothing but market evangelist insecurities.

In a modern economy "dependence" on government is unavoidable, and generally leads to a more productive society. The alternative -- malnurished and underprovided and uneducated children and elderly people -- is retrograde.



So much for YOUR credibility....

KC
09-20-2012, 09:02 PM
To me this represents an economic problem inasmuch as it is a failure of society.


Read more at THE INDEX OF DEPENDENCE ON GOVERNMENT KEEPS RISING (http://www.humanevents.com/2012/09/19/the-index-of-dependence-on-government-keeps-rising/).

I wonder what happened circa 2007 that caused the sharp decline. Perhaps someone can point to a specific policy change that helped decrease government dependence.

Chris
09-20-2012, 09:25 PM
I wonder what happened circa 2007 that caused the sharp decline. Perhaps someone can point to a specific policy change that helped decrease government dependence.

Darned good question. Off to research...

Chris
09-20-2012, 09:41 PM
I'll throw this out there as an answer:

Welfare.[19] The 1996 Welfare Reform Act, or the Personal Responsibility and Work Opportu*nity Reconciliation Act (PRWORA), replaced the decades-long Aid to Families with Dependent Chil*dren (AFDC), through which recipients were enti*tled to unconditional benefits, with Temporary Assistance to Need Families (TANF), a block grant program. Welfare reform effectively altered the fun*damental premise of receiving public aid and ended it as an entitlement. Receiving assistance was now temporary and tied to demonstrable efforts by the recipients to find work or take part in work-related activities. Self-sufficiency of the recipients became the focus. The successes of welfare reform are unde*niable. Between August 1996 and March 2008, wel*fare caseloads declined by 63.5 percent, from 4.5 million families to 1.6 million families.[20] The legis*lation was similarly successful in reducing child poverty. Since 1996, 1.3 million children have been lifted out of poverty.

The 2008 Index of Government Dependency (http://www.heritage.org/research/reports/2008/10/the-2008-index-of-government-dependency).

Everything else in the report rose but welfare.

Reform works.

KC
09-20-2012, 09:47 PM
I'll throw this out there as an answer:


The 2008 Index of Government Dependency (http://www.heritage.org/research/reports/2008/10/the-2008-index-of-government-dependency).

Everything else in the report rose but welfare.

Reform works.

The answer was supplied in the link you provided:


Using a benchmark index of 100 for 1980, the Dependency Index for 2007 stands at 238, an 8.8 percent decrease over the 2006 score of 261. The 2006 score of 261 reflected spending for hurricane relief. When compared to the 2005 score of 237, the Index continues its seemingly relentless upward growth.

So it turns out the huge jump in dependency in 2006 can actually be attributed to Hurricane Katrina.

Chris
09-20-2012, 09:55 PM
Answer right before my eyes. :Doh!: So a sharp rise for Katrina relief.

Still, to rescue my finding, 2007 looks somewhat below trend. :homework:

KC
09-20-2012, 10:07 PM
Ok, we have made some progress here. Now for the next question. By looking at the chart, we were keeping things fairly controlled up until 2001, when it seems the real mischief began happening. But I wonder if most of th e sharp increase in dependencies had to do with military benefits for our troops beginning a war and for response to the September attacks. Basically, since 2001 we see almost nothing but steadily rising dependency, controlling for Hurricane Katrina. In fact, in the decade after 2001, government dependency is increased by 50%. The rate is alarming, and it should come to no surprise that dependency increased during periods of both Republican and Democrat control of Congress and the Presidency. Can we crack most of this up to the war and the recession?

Peter1469
09-20-2012, 10:13 PM
Reform the dependencies, end them. Making them bigger, creating new ones will only rush us over the cliff.

The US will never end all entitlement programs. What is the other alternative? To limit them and eliminate waste and fraud.

Chris
09-20-2012, 10:22 PM
Ok, we have made some progress here. Now for the next question. By looking at the chart, we were keeping things fairly controlled up until 2001, when it seems the real mischief began happening. But I wonder if most of th e sharp increase in dependencies had to do with military benefits for our troops beginning a war and for response to the September attacks. Basically, since 2001 we see almost nothing but steadily rising dependency, controlling for Hurricane Katrina. In fact, in the decade after 2001, government dependency is increased by 50%. The rate is alarming, and it should come to no surprise that dependency increased during periods of both Republican and Democrat control of Congress and the Presidency. Can we crack most of this up to the war and the recession?

Bush was a liberal. NCLB. Medicare Drug Bill. Think he outspent all but FDR, and now Obama is outspending him.

Going along with your answer there was a big increase in dependency as baby boomers reached retirement age.

Chris
09-20-2012, 10:23 PM
The US will never end all entitlement programs. What is the other alternative? To limit them and eliminate waste and fraud.

No one's going to do that. The only limiting we see is not cutting spending but slight cutting the rate of increased spending.

KC
09-20-2012, 10:27 PM
Bush was a liberal. NCLB. Medicare Drug Bill. Think he outspent all but FDR, and now Obama is outspending him.

Even if Bush was a liberal (which I do not believe he is, in either the classical or American sense of the word), how did those programs increase government dependency? Did the Medicare drug bill increase the number of dependents, or just change the way an existing dependency program is structured. Stay focused on the topic of the argument rather than bringing in the blame game. It's the policies that caused increased dependency, regardless of who implemented them.

Chris
09-20-2012, 10:31 PM
Even if Bush was a liberal (which I do not believe he is, in either the classical or American sense of the word), how did those programs increase government dependency? Did the Medicare drug bill increase the number of dependents, or just change the way an existing dependency program is structured. Stay focused on the topic of the argument rather than bringing in the blame game. It's the policies that caused increased dependency, regardless of who implemented them.

The chart indicates increased dependency not just increased dependents. With the Medicare Drug Bill more Americans became more dependent. With NCLB we became more dependent on federal government to define education. Those and other policies resulted in a dramatic increase. It's not just a blame game.

I'd edited in another response above re baby boomers retiring.