Believe it or not, this ain’t caused by poor people or welfare.
It’s caused by having shifted our open-circuit free market economy to a closed circuit feedback economy.
This means we used to have policies, after WWII, that encouraged an accumulation of capital across the income spectrum. The investment capital that spurred economic growth came mostly from earned income. Unearned income, like capital gains, was heavily taxed and paid for the services that kept the market free — like defense, infrastructure, justice, etc.
Wage earners, even without minimums, generally were paid enough (before globalization hit the fan, businesses knew that “consumers” and “labor” were the same peopme, and so cutting wages killed consumer spending. imagine that!). Wage earners were in fact the biggest suppliers of capital, as savings or mutual fund contributions.
Around 1970, Nixon took us off the gold standard and set a fiscal policy that allowed bankers to borrow non-anchored, worthless fiat money from tbe fed. The bankers no longer needed savers to provide capital to invest, and quit paying interest on savings. then they started charging savers. They took over venture investments, and then, with that interest-free fed money, expanded speculative investment, hostile takeovers, mergers and acquisitions (none of which create jobs, btw!).
Outsourcing, allowed and even encouraged and subsidized by those same banking policies, then did 2 things… created a permanent labor surplus and lowered prices for consumers a little. Wages went into freefall. This was answered not by stopping the destructive business and banking policies, but by taxing the middle class to subsidize poor people. These poor people were not moral failures, they were victims of monetary policies that enriched crony bankers.
The welfare expansion created resentment of poor by middle class, who failed to see tbat they were all being fucked over by banking schemes. Welfare, as a subsistence, seemed to go to the poor, but it actually, if you think just once, ends up in the pockets of businesses, and much of it becomes profit for those businesses. Welfare, always spent in total by the poor, is ending about 50% ccorporate income, with a few poor people as middlemen who get to eat and such.
and then those profits are reinvested, sjewing tbe system even more.
If a business or banmer is taxed to pay for welfare and SNAP, it actually does in fact get paid back. To claim otberwise is a lie, by omitting the fact that recipients of welfare are consumers who help drive profits.
when you have money policy that encourages capital gains to be the primary source of investment capital, that is closed -circuit, and an accelerating feedback loop will happen. Coouple tbis with a labor demand system that has a pool of labor across borders, while the laborers do not have equal freedom to cross those borders to seek emoyment, and you have effectivy ed tbe “free” market and now have a closed-circuit capital pool, and a labor-disadvantaged labor pool. The result, through no fault of the victims, is that all the money will eve tuay accumulate in greater amounts and in lesser hands.