Whoops!

More unintended consequences from Liberal “help”.

SEATTLE, Wash. —

A Seattle-area nonprofit observed some workers recently asking for reduced hours, as they feared that their higher wages now put them at risk of losing housing subsidies.

Nora Gibson is the executive director of Full Life Care, a nonprofit that serves elderly people in various homes and nursing facilities. She is also on the board of the Seattle Housing Authority.

Gibson told KIRO 7 she saw a sudden reaction from workers when Seattle’s phased minimum-wage ordinance took effect in April, bringing minimum wage to $11 an hour. She said anecdotally, some people feared they would lose their subsidized units but still not be able to afford market-rate rents.

For example, she said last week, five employees at one of her organization’s 24-hour care facilities for Alzheimer’s patients asked to reduce their hours in order to remain eligible for subsidies. They now earn at least $13 an hour, after they increased wages at all levels in April, Gibson said.

“This has nothing to do with people’s willingness to work, or how hard people work. It has to do with being caught in a very complex situation where they have to balance everything they can pull together to pull together a stable, successful life,” Gibson said.
Gibson said she fully supports a minimum wage increase but was not surprised when her employees asked for fewer hours.

“The jump from subsidized housing to market rate in Seattle is huge,” she said.

Seattle Housing Authority told KIRO 7: “It’s important that the continuum of affordable housing options in our city and region allows for progression as people’s incomes increase. That needs to be addressed across the housing market so that people don’t feel they are in jeopardy of stable housing as they are able to earn enough to pay more of their housing costs.”

The amount of public assistance one receives depends on the income and size of the family. The scale is determined by the U.S. Department of Housing and Urban Development, and the qualifications are based on area median income.

Justine Decker, who is a full-time student at Seattle Central College, said she works part-time so she can still get subsidies for rent and child care.

“A one-bedroom can cost upward of $1,200. And so imagine paying that, and paying child care which can be $900 something dollars,” Decker said.

She said she doesn’t want to work full time, or she wouldn’t be able to afford market-rate rents. Decker said she’s in school to become a teacher and hopes to eventually become a principal, to make well over minimum wage levels to be able to pay for everything on her own.

Mohamed Muktar drives an Uber and also receives public assistance for housing. He said he would love to work more hours.

“If you can get more hours, I think you need to work more hours, so you can take care of your bills,” Muktar said.

Seattle Councilmember Nick Licata said he hadn’t heard of purposeful reduction of hours before.

“We need more information, for one thing. This is anecdotal,” Licata said.

Still, he said people need more options, especially after breaking the threshold that pushes them out of public housing.

“We do not want this to be an improvement on one side of the scale, and then decrease in living conditions on another,” Licata said. “We should not be using this as an excuse not to address the overall problem.” (KIRO)

The New America

Political Cartoons by Chuck Asay

John Stossel: The Obama administration now proposes to spend millions more on handouts, despite ample evidence of their perverse effects.

I would argue that that is exactly WHY HE IS DOING IT and he knows exactly why he’s doing it. As usual, it’s political, not economical.

The more dependents, the more votes for more dependents, the more addicts for the never-ending hamster wheel to the promised land.

Shaun Donovan, secretary of the Department of Housing and Urban Development, says, “The single most important thing HUD does is provide rental assistance to America’s most vulnerable families — and the Obama administration is proposing bold steps to meet their needs.” They always propose “bold steps.”

In this case, HUD wants to spend millions more to renew Section 8 housing vouchers that help poor people pay rent.

Isn’t it curious 🙂 that Section 8 housing just happens to be named similar to : The term Section 8 refers to a category of discharge from the United States military when judged mentally unfit for duty.  (It’s what Klinger was trying for for 11 years on M*A*S*H).

Coincidence? I doubt it. 🙂

The Section 8 program ballooned during the ’90s to “solve” a previous government failure: crime-ridden public housing. Rent vouchers allow the feds to disperse tenants from failed projects into private residencies. There, poor people would learn good habits from middle-class people.

It was a reasonable idea. But, as always, there were unintended consequences.

“On paper, Section 8 seems like it should be successful,” says Donald Gobin, a Section 8 landlord in New Hampshire. “But unless tenants have some unusual fire in their belly, the program hinders upward mobility.”

Goo, because then the low-information drug addicted voter votes to keep the gravy train going. That’s good for the politician. And what’s good for the politician MUST be good for all of us because they “care” and it’s only “fair”.

Gobin complains that his tenants are allowed to use Section 8 subsides for an unlimited amount of time. There is no work requirement. Recipients can become comfortably dependent on government assistance.

Isn’t that the goal? 🙂

In Gobin’s over 30 years of renting to Section 8 tenants, he has seen only one break free of the program. Most recipients stay on Section 8 their entire lives. They use it as a permanent crutch.

Government’s rules kill the incentive to succeed.

But who cares, they vote for the politicians who best kisses their ass. Success and struggle are over-rated when you can get others to do it for you. 🙂

Section 8 handouts are meant to be generous enough that tenants may afford a home defined by HUD as decent, safe and sanitary. In its wisdom, the bureaucracy has ruled that “decent, safe and sanitary” may require subsidies as high as $2,200 per month. But because of that, Section 8 tenants often get to live in nicer places than those who pay their own way.

Well, isn’t that “fair”?

True, the worst rent I ever had was $1,200 a month in very nice neighborhood (allegedly I had 2 roommates to share the burden with at the time but I guess they thought I was the government and I had to do all on my own–that didn’t last).

They deserve it right, because it’s only “fair”. 🙂

Kevin Spaulding is an MIT graduate in Boston who works long hours as an engineer, and struggles to cover his rent and student loans. Yet all around him, he says, he sees people who don’t work but live better than he does.

“It doesn’t seem right,” he says. “I work very hard but can only afford a lower-end apartment. There are nonworking people on my street who live in better places than I do because they are on Section 8.”

But if you complain about it, you’re just a mean old capitalist who just wants them to be homeless! You cad!

It’s not “fair”! 🙂

Spaulding understands why his neighbors don’t look for jobs. The subsidies are attractive — they cover 70 to 100 percent of rent and utilities. If Section 8 recipients accumulate money or start to make more, they lose their subsidy.
 “Is there a real incentive for the tenants to go to work? No!” says Gobin. “They have a relatively nice house and do not have to pay for it.”

Then you have your Obama Phone, Your Obama Internet, Your Obama Food Stamps, Your Obama Welfare Check. Why would you ruin a good thing like that with something as hard and mean as a JOB!!  <<shudder in terror>>

That’s ridiculous. Besides, the world owes me . Why? Just Because the politicians I voted for said so! 🙂

Once people are reliant on Section 8 assistance, many do everything in their power to keep it. Some game the system by working under the table so that they do not lose the subsidy. One of Gobin’s lifetime Section 8 tenants started a cooking website. She made considerable money from it, so she went to great lengths to hide the site from her case manager, running it under a different name.

Now see, that’s capitalism! Gaming the system, everyone does it. Especially “rich” people so why shouldn’t I do it. It benefits me, and that’s all that matters.

It’s a lot easier than the alternative.

“Here’s a lady that could definitely work. She actually showed me how to get benefits and play the system,” says Gobin.

Just like “rich” people, right? But with less struggle and less discrimination. 🙂

Although Section 8 adds to our debt while encouraging people to stay dependent, it isn’t going away. HUD says it will continue to “make quality housing possible for every American.”

Because that’s “fair” and you don’t wanna be mean and see all these people homeless now do you? 🙂
Despite $20 billion spent on the program last year, demand for more rental assistance remains strong. There is a long waitlist to receive Section 8 housing in every state. In New York City alone, 120,000 families wait.

Some are truly needy, but many recipients of income transfers are far from poor.

America will soon be $17 trillion in debt, and our biggest federal expense is income transfers. They are justified on the grounds that some of that helps the needy. But we don’t help the needy by encouraging dependency.

Government grows. Dependency grows.

And that’s Exactly why they do it in the first place. That’s a good thing for everyone involved in the incestuous relationship.

It’s just not good for everyone else.

Screw You!  I got mine and YOU get to pay for it! that’s the New American Motto.

In case you thought there was no risk of your taxes going up again, think again. Washington isn’t done with you yet.

Democrats, led by President Barack Obama, want lawmakers to consider a fresh set of tax increases in the next several weeks when they discuss whether to cut spending. 

Think about that for a moment. While they are discussing cutting spending (which they won’t do) they want more tax increases.

But much of what Obama is talking about is raising tax revenue without actually raising tax rates. In Washington-speak, lawmakers will try to collect more tax money by closing tax loopholes, perhaps limiting popular tax deductions and to some degree changing the way citizens pay into the popular Medicare and Social Security programs. (mcclatchydc).

The Tax that isn’t a tax so they can say it’s not a tax per se.

Sounds like Gaming the System. Just like the Section 8 housing.

Funny how that happened…

After all the “fiscal cliff” deal is expected  to raise about $600 billion over 10 years. That’s 60 Billion a year. At the current rate of over-spending that pays for 12 days!

What a Deal! Stick it to “the rich” for virtually nothing and then come back for more!

And if you’re denied just complain, again, that you’re opponent is a “rich” loving asshole!

Funny how that happened… 🙂

According to the CBO, deficits in just the first three months of this fiscal year already add up to $293 billion.

Which means that, despite Obama’s massive tax hikes, deficits will likely top $1 trillion for the fifth year in a row, and Obama will have added $7.5 trillion to the nation’s debt since taking office.

The problem isn’t just that the country is borrowing too much.

It’s that Washington is spending too much on programs that increase dependency on government. (IBD)

But that’s why they ARE doing it. The incestuous drug-addicts are killing everyone else but they don’t care because it benefits them NOW.
And after all, that’s all that matters. What benefits ME, right here, right now. Screw everyone and everything else!

A new Heritage Foundation study finds that the number of people getting federal benefit checks — through Medicare, Social Security, food stamps, subsidized housing, tuition aid or countless other entitlement programs — has shot up 62% since 1988.

That’s more than twice the rate of population growth.

As a result, more than four in 10 Americans are dependent on the federal government for financial help of one sort or another.

And they Vote!

Welcome to the Have-Not Drug Addicts and their “fair” political fellow drug addicts running the asylum.

All you suckers out there slogging along working hard trying to make something of yourself, keep doing it, because grandma needs a new flat screen, SUCKER! 🙂

Political Cartoons by Bob Gorrell

Political Cartoons by Gary Varvel

 

Distrust and Verify

Before my rant, I saw this cartoon and busted out laughing.

Political Cartoon by Michael Ramirez
DAMN STRAIGHT!!
Now on with the show!

Ever feel like your life is the subject of opposition research. Research to to know exactly how much of risk you are. To know everything about you.

No trust. No freedom.

Well, if you don’t. Then read this, and you may. It was in the Wall Street Journal, so not some wacky blog.

Big Banker is watching you—more closely than ever.

With lenders still skittish about making new loans, credit bureaus and others are hawking services that help banks probe deeply into your financial closet. The new offerings include ways to look at your rent and utility payments, figure out your income, gauge your home’s value and even rate your banking habits based on details like whether your direct deposits have stopped.

All of this could influence your financial freedom—not to mention the number of junk-mail solicitations you receive.

Ken Lin, CEO of Credit Karma, a credit-score information website, knew he had a good credit score. But when he recently applied for a new credit card, he was rejected: The lender had flagged him as a higher credit risk because the value of his California home had declined and his mortgage principal wasn’t declining—giving away that he has an interest-only mortgage.

“It’s a lot more than just your credit score today,” he says.

Your credit record still matters, of course. But here are some newer ways lenders and financial-services companies are sizing up your financial behavior and credit-worthiness:

• Bank-depositor behavior scores. Fair Isaac, the creator of the widely used FICO credit score, is marketing bank-depositor behavior scores, which are used by banks to assess their own customers.

The scores are based on balances, deposit records and withdrawal activity, says Debb Gordon, a senior principal consultant at Fair Isaac.

Unlike credit scores—which are most affected after payments are late or credit is maxed out—behavior scores can be a leading indicator of credit risk. They also can help banks identify which of their customers might be ripe for additional services and rewards programs and which might need special attention because, for instance, their direct deposits had stopped.

• Income estimation. This business took off earlier this year after the Federal Reserve allowed lenders to use credit bureaus’ income estimates to satisfy new requirements that credit-card applicants show the ability to pay their debts.

The bureaus use credit-record information, such as the size of your credit lines and the age and size of your mortgage, and plug it into models to predict your earnings. Those estimates also may be used to double-check the income you report on credit applications or to determine if you should be preapproved for credit.

You can’t see those estimates. But if you are denied credit because of them, you must be given a chance to provide additional information.

• Rent payments. An estimated 40 million consumers, including young people and people who prefer to pay in cash, have too little credit experience to generate a useful credit score. But they are likely to pay rent or utility bills, which could help credit bureaus better assess their credit-worthiness.

Experian, one of the three major credit bureaus, bought RentBureau—which collects rental-payment data from large property managers—and expects to integrate that information into credit records before the end of the year.

Even if those consumers don’t want credit, that information could help them win better rates from insurers, which may use insurance scores based on credit records, and fatten up thin credit files, which some employers check before making hiring decisions.

Credit bureaus say they also would like to offer data on cellphone payments, but have run into concerns over privacy issues, which may require legislation to untangle.

• Collection triggers. If you owe money, you can run, but you can’t hide. Credit bureaus can now send daily reports to collection companies when a debtor’s financial status changes—say, if new employment information appears or if a debt starts to decline. A drop in credit use would indicate that the consumer has more capacity to pay and a better chance of repaying other outstanding debts.

• Home values. As home values have plummeted and foreclosures have soared in many states, lenders of all stripes have become more cautious, as Mr. Lin found. Using home values as a factor in credit decisions doesn’t appear to be widespread, but it may come into play when someone in, say, Nevada or California applies for a new loan. Of course, it also could work in your favor if you are one of the roughly 25 million Americans who owns a home outright.

• Your wealth. Information about your assets other than homes and cars, which aren’t part of the credit record, may soon play a bigger role in your financial life. With a better sense of a consumer’s balance sheet, lenders might be able to target potential customers better and also have a fuller sense of their likely risk. Equifax, another of the big three credit bureaus, offers financial-service providers an estimate of liquid wealth as part of a financial “suite” of information.

As all of this becomes a widespread practice, those who are prompt and careful in all aspects of their financial life may have more options—and those who have been sloppy with, say, their bank accounts may be penalized for that.

And mind you, Obama’s Federal Reserve  just gave the banks another stimulus.

I wonder if they’ll track the money you lose due to government policies like massive tax increases, say 1/1/11, Health Care, etc al??

Or the Inflation that even more spending by the Fed will cause?

Too bad no one is watching the government or these “too big to fail” banks like a hawk.

We are the prey.

“Trust Me, I know I’m doing” — Detective Sledgehammer (love that show).

We just don’t trust you, citizen. On anything!