Posted on 01/15/2022 9:05:00 AM PST by Browns Ultra Fan
Since the 2020 Covid outbreak, the top 1% have been on the Stimulypto gravy train. The top 1% in terms of share of total net worth (blue line) is near the all-time high while the bottom 50% share of total net worth (red line) is at the all-time low.
So, you thought all that Covid relief spending along with Fed monetary stimulus would help the bottom 50%?
(Excerpt) Read more at confoundedinterest.net ...
Misleading. Being increasing alarmed at the growth of the social state and national debt, then after I read today that “Congress created the Affordable Connectivity Program, a new long-term, $14 billion program, with “new ways to qualify for the Affordable Connectivity Program such as: receiving WIC benefits or having an income at or below 200% of the Federal Poverty Guidelines [levels],” then I decided to investigate and expose some of this growing dependency upon government.
Note that while the national debt presently stands at over 29 trillion dollars and rising, yet partly due to Covid-19 and supererogatory measures (both are judgments from God) to control it, 61% of Americans paid no federal income taxes in 2020.
Reading “200% of the Federal Poverty Guidelines” promoted me to investigate that first, and which means, for instance, that while for a household of three the Federal Poverty Level (FPL) would be $21,960 yet 200% of the FPL would be $43,920 (compared with $29,646 last year), and would qualify that household for $30 a month discount for high-speed Internet and “eligible households also can receive a onetime discount of up to $100 to purchase a laptop, desktop computer or tablet from participating providers if the consumer contributes $10 to $50 toward the purchase price.” “The $14.2 billion Affordable Connectivity Program is just a part of roughly $65 billion to improve access to high-quality, high-speed internet access contained in the bipartisan infrastructure bill that President Joe Biden signed into law Nov. 15.” (https://www.aarp.org/home-family/personal-technology/info-2021/fcc-subsidy-helps-broadband-internet-access.html)
However, as reported here, the official poverty measure is based on cash income only, which fails to capture all the resources available to a family including tax credits and in-kind transfers. Also, the official measure of family resources is biased due to under-reporting of certain types of income that are commonly received by those with low reported income.
What are Federal Poverty Guidelines/Levels (FPL)?
The Federal Poverty Guidelines are federally set “poverty lines” that indicate the minimum amount of annual income that an individual / family needs to pay for essentials, such as housing, utilities, clothing, food, and transportation. These guidelines, also called Federal Poverty Levels (FPLs), are based on the size of a household and the state in which one resides. FPLs are the same in 48 of the 50 states. The two exceptions are Alaska and Hawaii, which have higher Federal Poverty Levels due to the higher cost of living. As an example, in 2021, the annual FPL for an individual in Alaska is $16,090, in Hawaii it is $14,820, and in the remainder of the states it is $12,880...
The exact percentage of the FPL used for eligibility purposes varies based on the program and the state...
# of Persons in Household | 2021 Federal Poverty Level for the 48 Contiguous States (Annual Income) | ||||||
100% | 133% | 138% | 150% | 200% | 300% | 400% | |
1 | $12,880 | $17,130 | $17,774 | $19,320 | $25,760 | $38,640 | $51,520 |
2 | $17,420 | $23,169 | $24,040 | $26,130 | $34,840 | $52,260 | $69,680 |
3 | $21,960 | $29,207 | $30,305 | $32,940 | $43,920 | $65,880 | $87,840 |
4 | $26,500 | $35,245 | $36,570 | $39,750 | $53,000 | $79,500 | $106,000 |
5 | $31,040 | $41,283 | $42,835 | $46,560 | $62,080 | $93,120 | $124,160 |
6 | $35,580 | $47,321 | $49,100 | $53,370 | $71,160 | $106,740 | $142,320 |
7 | $40,120 | $53,360 | $55,366 | $60,180 | $80,240 | $120,360 | $160,480 |
8 | $44,660 | $59,398 | $61,631 | $66,990 | $89,320 | $133,980 | $178,640 |
Add $4,540 for each person in household over 8 persons | |||||||
The Federal Benefit Rate, abbreviated as FBR, is the maximum amount to which an aged, blind or disabled person who qualifies for Supplemental Security Income (SSI) is able to receive in monthly cash benefits. In 2021, the maximum FBR is $794 for a single individual and $1,191 for a married couple...(https://www.medicaidplanningassistance.org/federal-poverty-guidelines)
What programs use FPL guidelines?
Several programs use either 100% of the poverty guidelines or a percentage multiple of the guidelines. For example, some programs use 125%, 150%, or 185% of the guidelines to determine eligibility. (https://www.medicareplanfinder.com/medicare/federal-poverty-level/#What-programs-use-FPL-guidelines)
[AT LEAST 30 PROGRAMS USE THE FPL.]
Some examples of federal programs that use the poverty guidelines in determining eligibility include the following:
Department of Health and Human Services: Community Services Block Grant, Head Start, Low-Income Home Energy Assistance
Department of Agriculture: Supplemental Nutrition Assistance Program (SNAP, formerly Food Stamp Program), National School Lunch Program, Child and Adult Care Food Program
Department of Energy: Weatherization Assistance for Low-Income Persons Federal Poverty Levels do not count Noncash benefits (e.g. food stamps and housing subsidies)
Department of Labor: Job Corps, National Farmworker Jobs Program, Workforce Investment Act Youth Activities (https://www.irp.wisc.edu/resources/what-are-poverty-thresholds-and-poverty-guidelines/)
Examples of Automotive Help Programs
New Car Program for Those in Need
Bad Credit Auto Loans
Extended Auto Warranties
Job Access and Reverse Commute
Disability Transportation
{https://reliefbenefits.com/government-assistance)
What income is not counted? [for SNAP benefits]
You must meet the SNAP income tests to get SNAP benefits. There is no asset test for most Massachusetts households....
Here are examples of income that does not count for SNAP:
VISTA, Youthbuild, AmeriCorps, and Foster Grandparent allowances, earnings, or payments for persons otherwise eligible.
U.S. temporary Census earnings, for the 2020 Census count.
Lump sum payments...
Reimbursements – money you get to pay you back for expenses,.
Senior Community Service Employment Program (SCSEP)...
Anything you do not get as cash... paid directly to a landlord or utility company...that has no legal obligation to do so....
Veterans Services (M.G.L. c 115) payments made by vendor payment directly to your landlord or utility company.
Money earned by a child under age 18 who..lives with a parent or other responsible adult.
Much more: https://www.masslegalhelp.org/income-benefits/food-stamps/advocacy-guide/part3/q69-income-not-counted; Produced by Patricia Baker and Victoria Negus, Massachusetts Law Reform Institute Reviewed January 2020
[Below are some more benefit programs and services, but which also include local, state and federal programs as well as some private organizations.]
GOVERNMENT ASSISTANCE PROGRAMS OR FINANCIAL HELP FROM LOCAL ORGANIZATIONS...
Government mortgage and foreclosure assistance is available...
Rent help from assistance programs is available from a number of sources.
Government mortgage and foreclosure assistance...
Rent help from assistance programs i..
a variety of additional low income assistance programs ..
Housing Choice Voucher Program...
Disability assistance is administered by most state governments..
Human or social service offices ...
Financial assistance from your utility company may be available...
Telephone assistance programs..
Water bill assistance programs..
Federal government grants are provided to states and local governments as part of low income energy (LIHEAP)...
Free weatherization programs are also available nationwide...
Medical bill assistance..
Prescription drug assistance programs ..
Government funded community clinics..
Find dental care from free clinics...Many accept both state or federal government assistance and public health insurance for payment..
Free government health care programs..
Government sponsored welfare programs are available nationally as well as locally....
Free food from assistance programs are offered by the state as well as federal government...
Charities, churches and other organizations that offer financial assistance or small amounts of money from the government can sometimes help you with paying bills or debts...
Older adults and senior citizens.. There are government funded agencies that focus on their needs..
Several federal government agencies are focused on supporting people and helping them find a job or gain new skills. ..
Day and child care assistance is available in all states.... Government child care vouchers and subsidies can be obtained
State & Local Resources[;] Rent Assistance[;]
Free Food Pantries[;] Utility Bill Help[;]
Free Stuff and Money[;] Extra Income and Home Work;
Public Assistance[;] Disability Programs[;] Section 8 Housing[;] Senior Assistance[;] Emergency Rent Assistance[;] Free Job Training[;] Free Money[;] Grants For Bills[;] Free Clothes & Supplies[;] LIHEAP Assistance[;] elephone Assistance[;] Help with Water Bills[;] Charity Assistance[;] Church Assistance[;] Community Action Agencies[;] Medical Bills[;] Free Healthcare[;] Free Prescriptions[;] Free Community Clinics[;] Free Dental Clinics[;] Loans For Bills[;] Automobile Loan Assistance[;] Free Cash Loans[;] Debt Help[;] Mortgage Help[;] ...
How much CASH assistance will I get?The amount of cash assistance available in each state listed below varies...the dollar amounts will always change from year to year... 8 highest vs. 8 lowest I found]
Alaska $923; New York $789; California $704; Connecticut $698; New Hampshire $675; Wisconsin $653; Massachusetts $618; Hawaii $610';
Mississippi $170; Tennessee $185; Alabama $215; Arkansas $204; Louisiana $240; Kentucky $262; Georgia $280; Texas $285 (https://www.needhelppayingbills.com/html/how_much_cash_assistance.html)
Paying For Child Care
Child care subsidies (also called vouchers and fee assistance):
Head Start and Early Head Start:
State-funded prekindergarten:
Military fee assistance programs:
Assistance for high school students:
College or university child care:
Employer-assisted dependent care:
Other employer resources:
Sliding fee scale:
Local assistance and scholarships:
Sibling discount:
Military discount:
American Indian and Alaska Native Assistance:
Native Hawaiian child care and preschool programs:
Child and dependent care tax credit
Earned income tax credit (https://childcare.gov/consumer-education/get-help-paying-for-child-care)
What types of federal student loans are available?
Direct Subsidized Loans .
Direct Unsubsidized Loans
Direct PLUS Loans
Direct Consolidation Loans
(https://studentaid.gov/understand-aid/types/loans)
Social Security Survivors Benefits
Eligible survivors include:...
COVID funeral reimbursement now $9,000
If a relative of yours died from COVID-19, you may be able to get reimbursed up to $9,000 for funeral expenses. ..In 2019, the median national cost of a funeral with a viewing and a burial was $7,640 (https://www.cnet.com/personal-finance/covid-funeral-reimbursement-now-9000-heres-how-to-apply-today/)
This is really not about “where the money went” as it is a natural effect of what different people do with their money.
To the bottom 50% most of the “stimulus” went into consumption (all of it needed consumption or not), while in the top 1%, a lot of the stimulus helped boost prices, including asset prices, and wealth building market-value-reflecting assets are more of what the top % have compared to the bottom 50%.
To me it was a given that all the stimulus, both from the U.S. treasury and from the Federal Reserve, would induce inflationary spending (consumption) and capital asset value increases, and it is obvious to anyone which end of that would be expressed most in the bottom 50% and which end among the top 1%.
I want to live in a country with as many extremely rich people as possible. I have more opportunities in such a country. The huge wealth some are able to build is a plus for me and every citizen, not a minus.
Countries where that can’t are to be avoided.
Fiat, printed, government-controlled money has been known to skew wealth distribution since basically the fall of the Roman Empire. The logic is simple - those closest to “new money” can use it, to buy real assets, before it filters down to the rest of the economy in the form of inflation. Richard Cantillon described this in detail in the early 18th century
The great trick of socialists/marxists/progressives of the 20th century was to make the world forget this 1500 year-old lesson, and re-establish the cult of the all-wise, all-knowing central planner.
Huge wealth through productivity and value-creation, or huge-wealth through gaming government regulatory and monetary policy? There's a big difference and you should know it.
“Huge wealth through productivity and value-creation, or huge-wealth through gaming government regulatory and monetary policy? There’s a big difference and you should know it.”
Of course I know it. All of the above is going on and I have no control over the policies involved and never will. I can only react to what the govt and the FED does and that’s what I’ve done for decades.
Or I could withdraw and go live in a cave and grow a few veggies. The way I have chosen has worked out great. (So far).
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