- Oct 6, 2008
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- #201
Americans are so afraid that one person will bilk the system that they set up elaborate systems of fraud detection that cost far more than the losses which occur because of fraud or abuse of the system. Every single program has "means testing" which duplicates the means testing of other programs. It's one thing to talk about how much money is spent on social programs, but how much of that money is actually making into the hands of the people it's purportedly supposed to help and how much is spent on administration of these programs?
Food stamps, is one example of a program which layers means testing on top of other means testing. And recipients are required to spend the money in stores taking electronic debit cards which restrict their shopping to supermarkets and other corporate entities. The cards can't be used at farmers' markets or fresh produce stands where the consumer gets more nutritious foods at a lower price. It would be far cheaper to increase general welfare, or earned income credits to put more money into the hands of low income families and let them spend the money where they see fit.
Someone published a list of all of the programs under which the poor were able to obtain money from the government, but each program was separately administered, often by different government departments or even by differing levels of government, required separate means testing, and a whole separate government department for administration. While it can reasonably be argued that such administration provides jobs for the unemployed, it also adds to the costs of such programs.
Means testing is an expensive process. In Canada, they did studies which found that the cost of means testing was more expensive for some programs than universal coverage, and that was cheaper to make some programs available to everyone, than it was to eliminate those who didn't need the money.
In the early 1990's, the Province of New Brunswick was able to cut $300 million from the provincial budget and balanced the budget, without cutting government programs or services. It was referred to as McKenna's Miracle (Frank McKenna was the Premier of the province at the time). Basically, the province cut $300 million from the costs of administering government programs by streamlining the system under which they were administered, and removing the duplication of work between departments and programs.
"I won't insult your intelligence by suggesting that you really believe what you just said." William F. Buckley