Sunday, March 29, 2020

The CARES Act and Governmental Means Testing


Perhaps it is time to reconsider the means testing principle in federal programs.  In simple terms, means testing is the practice of delivering federal financial support to those with incomes which are deemed inadequate to maintain a sustainable living.  When you are considering the basic requirements for living…food, shelter, health…means testing makes good sense.  If the purpose of a federal support program is sustainable living, then the benefits should be targeted towards those who lack the resources to achieve a sustainable life.  The simple Christian and moral principle of compassion supports this practice.  While our government can never, and should not try to, be all things to all people; it can certainly reach out to help those truly in need.

Over the last several decades, and in an increasing fashion, this principle has been somewhat distorted.  The driving force that governs the determination of exactly who receives the benefits has been broadened and arbitrarily defined in such a way as to direct these federal benefits to certain individuals who are not necessarily in legitimate need of help to achieve a sustainable life.  And as it is with all things, the misdirection of these federal resources to those who might be considered undeserving occurs at the expense of many who might actually be deserving and are not receiving those federal benefits. 

What I consider a good example of this principle is the new legislation (the CARES Act) recently passed by Congress and signed by the President to pump out economic support for those impacted by the coronavirus pandemic.  As I understand the law, each eligible individual will receive up to $1,200 each.  Parental couples will receive a total of $2,400 plus $500 for each dependent child.  Here is a short summary of the benefits: https://www.washingtonpost.com/graphics/business/coronavirus-stimulus-check-calculator/  . 

The coronavirus episode is impacting most every American; but that impact is in such a variety of varying degrees that any attempt to address all of these effects is an impossible mission.  One size does not fit all.  It is therefore right and proper that we should all give Congress and the President a great deal of latitude in how they chiseled this monumental $2,000,000,000,000 (trillon) piece of legislation.  To put that number in perspective, let's say you've pulled an H.G. Wells and built a functional time machine. If you ordered it to take you one trillion seconds back in time, you'd get to hang out with mammoths and saber-toothed cats because one trillion seconds is the equivalent of 31,546 years.

With a package this big, it is really not surprising that a few things slipped through the process that were not exactly pertinent to coronavirus relief: https://www.powerlineblog.com/archives/2020/03/big-government-contagion.php .  And although the Congressional Democrats were absolutely disgraceful is loading up this Act with extraneous features; the Republicans no doubt slipped a few in for their special interests.  At some point, all of those zeros following the dollar sign begin to lose their relevance to our legislators. 

Having engaged in their ritualistic give and take, all the folks involved in making this governmental sausage seemed to agree that a little bit (in the eyes of the beholder) of favoritism and waste in the bill was acceptable and the good in the bill far outweighed the bad.  In other words, notwithstanding that the legislation was passed to address one of the most serious emergency challenges ever faced by our nation, this piece of law was developed by conducting business as usual.  Not a real good look for our ruling class.  One would hope that they had retained some capacity to rise to the moment. 

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Circling back around to my first point; is the means testing in this Act really fair?    Consider a working couple with two kids who are busting their tails to maintain a good life for their family.  They have worked hard, climbed their way up the career ladder, and gained good jobs with good salaries.  They are not wealthy; but they have achieved a good standard of living through hard work and discipline.  They are pursuing and living the American dream.  Under the CARES Act, those working couples jointly making between $150,000 and $198,000 will have their benefits reduced incrementally down to zero.    

Now there is no doubt that this group of working families has been impacted greatly by the cornonavirus event.  They support this government with their taxes and support our economy with their spending practices.  And now, at this moment in time, when our government decides to help this nation cope with the adverse economic impact of this pandemic, they find themselves limited or excluded from the federal support financed by their own paychecks.  I agree that at some point of income or wealth, a family might be deemed not to be in need of federal support under the CARES Act.  But based on my own children’s lives and those others that I see in my community, this exemption level appears to be unfairly low.  Is it really fair to take a family where the father works construction making $95,000 annually, whose wife works as a nurse and annually earns $65,000, and reduce their benefits?  These are the very people who power the economic engine of America and they are the ones who pay the bills and keep the lights on in our nation.  Is it really fair to penalize them at the expense of those who might annually earn less each year; even including retired and non-working individuals? Is the overall adverse impact any greater on the lower income folks than it is on the ambitious folks who might have higher yearly incomes?  I don’t think so.  In fact, a strong argument could be made that the adverse impact is greater on the construction worker and his wife, the nurse.

As a nation, we must always be compassionate and generous in the way we address those among us with limited resources and essential needs that are not being addressed.  On the other hand, we should always bear in mind that the funding that finances that compassion and generosity is coming from hard working people who have achieved economic success based on sacrifice, hard work, and accountability.  We must be careful to confine our definition of those in need to those who are truly in need.  And before those who are truly in need become beneficiaries of federal funds flowing from taxpayer pockets; they must first be held accountable for the circumstances that lead to their plights.  Are they doing all they can to self sustain?  Do we reward some who might expend less effort to be successful at the expense of those who strive to prosper?  That is not the premise that this country was built on.

This aspect of the CARES Act is symptomatic of many federal programs that have tipped the scales of fairness towards those who game the system; thereby penalizing those who try to lead accountable lives as American citizens.  While remaining ever-conscious of those among us who suffer through no fault of their own; our government must constantly strive to provide a hand up to these folks instead of a hand out.  The support programs administered by our government not only serve as a critical component for those in true need; they also demonstrate the principles that should reflect the ideals of our founders.  Those are principles of self-sufficiency, load-sharing, sacrifice for the greater good, compassion for those truly in need…and most of all…the opportunity for all to achieve a life of quality and prosperity.  I fear that this important logic has been lost on our government. 

This nation’s greatness is based on the freedom of individuals to pursue and achieve good lives according to their own choosing and built upon their own efforts.  If we allow our concerns for government support to quash the recognition of accountability and disregard exactly who pays for this support, then our nation will lose its greatness and our populace will become a collective rather than a group of independent individuals.   While giving those in true need their necessary support, let’s be certain that we give the construction worker and his wife their fair share also.

The coronavirus will take many lives in America.  There will be great losses for family, friends, and loved ones.  Here is a tribute to those we have lost…and will lose: https://www.youtube.com/watch?v=IU1rZa8Ur_Q&list=RDIU1rZa8Ur_Q&index=1 .  In case you didn’t catch them all, here are the beautiful lyrics to this song:

And now for a brief quarantine update….The weather in Kentucky is marvelous for late March.  The pastures are coming on and that is keeping the cattle off the hay for now.  It has been too wet to get any garden in; so there will be no peas this year.  The grass has been cut once, the lilacs are leaving out, there are some early blooms on fruit trees and Bradford Pear trees, snakes are crawling and I’ve pulled off at least a half dozen ticks so far.  It is a beautiful time of year to sit out on the front porch for coffee in the AM and a cool drink in the PM.  Deer are everywhere you look and the turkeys are finding their bugs in the grass.  If you have to stay home these days, around here it is a reward and not a punishment.  Thank the Lord for his magnificent creation.

It seems that a significant part of the small community of readers who frequent this blog have enjoyed the prior link to Manfred Mann and his Earth Band’s performance of Blinded by the Light.  Here is another great tune from that group who were clearly ahead of the curve in the music industry: https://www.youtube.com/watch?v=2sJygu903kU&list=RD2sJygu903kU&start_radio=1 .

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