Waste - Buying Beer With Your Food Stamps

Is it wasteful for someone to buy beer or cigarettes with their food stamps?  Why?  People like to complain about things like this as some sort of example on government waste.  And then they go on and on about tax dollars being thrown out the window..... buying beer instead of bread..... blah blah blah.

From an economic perspective you should be jumping for joy. Welfare dollars go right into your local economy.  Last time I looked they had an economic impact of like a $1.06 for every dollar that is spent.  They give people who need them the ability to buy more and give more people jobs ringing up merchandise, stocking shelves, driving trucks to the stores, etc.  Also, last time I checked the things at the grocery store including the Miller High Life's and Marlboro cigarette are mostly American made.

So its really a question of what they should be allowed to spend money on.  And I understand the point of view that says it should only be allowed to be spent on health things.  But who gets to draw the line?  What about sugary breakfast cereal?  Or ho-ho's?

Then there's the people that want to give out drug tests before handing out welfare.  Which of course will cost money to perform.  So that's wasteful.  But it will be jobs for the people to administer.  People to make the pee cups.  Hand out the pee cups.  Test the pee in the cups.  Write up the reports.....  Of course it will be our tax dollars creating these jobs.

So to sum it up.  Does it really matter?  Is there such a thing as government waste?  Doesn't it really just translate to jobs?  So why fight about it?  You could argue for greater accountability or more open records.  But you really can't stop the cycle.

In honesty, none of this really upsets me.  But to some people it's an outlet.  They are mad about something in there lives and they are blaming it on others.  No one in particular, just these face-less, name-less others who must be gaming the system and wasting their hard earned tax dollars.  But in reality these are people that need help.  And if you can come up with a better system, I'm sure people would love to hear it.

Cool.  No worries.  It is what it is.

-G-

My big fat Greek Debting

Greece is in a world of trouble.... And it's only about to get worse. Why? Cause they are in debt, bad debt, big fat debt for a country with an economy based on tourism and agriculture. The popular description is that Greece is a slow moving train wreck.

There are several big obstacles that make it nearly impossible for them to come out of this.
One, because they are on the euro they don't have the luxury of getting free financing from themselves. 20 years ago they would have just printed more money to pay off their obligations, now the euro zone would have to approve that. Which would be political suicide for the German or French govt as the euro becomes devalued against the dollar with US investment banks shorting them the whole way.  Their credit rating is shot. Estimates on the Greek coupon rate are in the low 7's. So even if they could sell bonds it would only delay their fate. They won't make their interest payments and the notes will come due and that will be that. We are back to square one with Greece needing a euro zone bail out. Euro falls against the dollar and the US banks will either kill off the spread or will come in to bonds at a steep discount.  German probably wants to just let Greece fail, but that could lead to trouble for the rest of the PIGS. Portugal, Ireland, Greece, Spain. If one defaults, would the rest?  Well if you want to know just look at what has been happening to the sub-prime mortgages.  It becomes a domino effect.  Investor confidence is shaken and the cost for all troubled European debt servicing goes up if one country defaults.  Which, leads to more failure and...... you should know this already...... everybody loses.

My thought.  Seems like they are toast.  Maybe not.  I think their only chance is to have the IMF step in and have the Greeks agree to tighter fiscal regulation.  I don't think the US is buying those bonds.  Why would American's want to bail out Europe?  Didn't they add fuel to the currency fight with all this "the world's new reserve currency" talk over the last decade?  I don't know this may make me sound like an arrogant American but, Greece figure this out.  You may have to do some unpopular things.  People may have to work a little longer, you may have to cut some pensions, you may have to sell some islands, I don't know all the ends and outs but figure it out.  Don't come running to us with your hands out. The big US banks are not going to miss an opportunity to make profits on you and if you default.... it won't be pretty.  Maybe you should get ready to start seeing the following signs around town: the B of A Acropolis, the J P Morgan Parthenon, or the Goldman International Airport.

If all else fails you could always spray Windex on the debt

(you'd have to see the movie)

Thanks for the read