00:01:16.000And it just talks about how much abuse there is in the welfare system that's costing hundreds of billions of dollars to American taxpayers.
00:01:25.400Well, and in particular, what it talks about is bogus bookkeeping that covers it up.
00:01:30.840And this is an op-ed that was written by Phil Graham and John Early.
00:01:34.120Phil Graham was previously senator from the state of Texas.
00:02:03.200Something is profoundly wrong with the U.S. welfare system, a problem that runs far deeper and is more dangerous than the shocking fraud in Minnesota that has been making headlines.
00:02:13.160Across the past half century, America has seen what in any other country would be considered a golden age, in which lower-income households have made incredible progress.
00:02:22.980Despite the end of our post-war economic dominance around 1975, the country's real per capita gross domestic product grew by 142% from 1974 to 2024.
00:02:39.260More than two-thirds of U.S. households have inflation-adjusted incomes today that would have put them in the top one-fifth of households in 1967.
00:02:48.660So, used to be the top one-fifth of households in 1967.
00:02:53.160Today, more than two-thirds of U.S. households have inflation that would put them there.
00:02:58.40062% of all children who grew up in the poorest fifth of all households in the 70s and 80s worked their way up to a higher income bracket as adults, some all the way up to the top quintile.
00:03:10.540Yet, even as our economy has experienced broad-based growth, real federal welfare spending has soared by, what do you think the number is?
00:03:38.440Were that money simply to be doled out evenly to the 19.8 million families the government defines as poor, each household, how much do you think each household would receive a year if you just took all the welfare payments and sent a check to each household?
00:04:03.540Tell me that's not a perfect example of government waste when you can just send direct checks of $70,000 a year to people.
00:04:13.220The source of this dramatic mismatch is a fraud built into how various programs determine welfare eligibility.
00:04:20.180The government doesn't count any refundable tax credits or benefits that aren't paid in cash as income to the recipients.
00:04:27.740Some claim this is appropriate because the beneficiaries aren't free to spend non-cash benefits on whatever they like.
00:04:34.520But that is a specious argument because money is fungible.
00:04:38.000Receiving Medicaid, for example, frees up cash that would otherwise be spent on health care, allowing the recipients to spend the newly freed cash on other things.
00:04:46.200Non-cash benefits aren't in the end that different from income, except that salaries are taxed while government benefits aren't.
00:04:52.540And if individual welfare programs often don't even count benefits paid in cash as income for the purposes of gauging eligibility,
00:05:01.780the government's failure to count its largesse as the recipient's income allows welfare households to blow past the income level above which a working family no longer qualifies for government help.
00:05:14.480Take a single parent with two school-age children who earns $11,000 annually from part-time work.
00:05:20.020The government considers this household in poverty because its income is below $25,273.
00:05:26.300But this family would qualify for benefits worth $53,128.
00:05:34.540It would receive treasury checks of $3,400 in refundable tax credits and $4,400 in refundable earned income tax credits.
00:05:42.980It would also receive food stamp debit cards worth $9,216 a year, $9,476 in housing subsidies, $877 in government payments for utility bills, $16,033 to fund Medicaid, $3,102 in free meals at schools,
00:06:00.860and $6,624 in temporary assistance for needy families, all this puts the family's income at $64,128 or 254% of the poverty level.
00:06:15.540And look, the point, Phil Graham goes on on this.
00:06:17.300But the point is, when they're measuring income, they exclude all the welfare and benefits that are going down,
00:06:24.580and then they measure income and said, look how poor people are, without counting the money that is going out the door.
00:06:31.200And by the way, this also contributes to the massive fraud we saw in Minnesota,
00:06:35.980because the Democrats and the federal government and state government are just focusing on shoveling cash out the door.
00:06:43.840And they're not focusing on how do you actually ensure any accountability, or even more importantly, how do you get people off welfare?
00:06:54.120Look, one of my favorite phrases is that the social safety net should be a trampoline and not a hammock.
00:07:02.300And by that, what it means is, listen, many people get down on their luck, they need help.
00:07:10.400But the entire focus should be to get you back on your feet.
00:07:14.420The entire focus should be to spring you out of the safety net and get you where you're working, where you have a job,
00:07:21.720where you're providing for your own family.
00:07:36.480You know, one of the amazing successes of welfare reform, one of the amazing successes of the first term of Trump,
00:07:42.960that saw over 7 million people go off food stamps and go into the workforce.
00:07:50.020Is that 7 million people that get to experience the dignity of work?
00:07:56.140I mean, that's literally a single mom who comes home from her job and is carrying two bags of groceries and puts those groceries on the kitchen table.
00:08:06.320And she looks at her kids, and she has the self-respect of knowing, hey, I'm providing for you.
00:08:12.060And the kids look at her and know that my mom is providing for you.
00:08:16.280Look, God created mankind, I believe, to work and to be productive and to make a difference and to provide for your family.
00:08:24.740And this welfare machine that the left is so invested in traps people in dependency,
00:08:33.040and you're not doing anyone a favor by making them dependent on government.
00:08:38.020Instead, you're sapping them of the path to the American dream.
00:08:43.140Now, if you want to hear the rest of this conversation, you can go back and listen to the full podcast from earlier this week.
00:10:05.500Federal prosecutors alleged Thursday that Minnesota may have lost billions of dollars to fraud in its Medicaid program.
00:10:12.740The latest development in an ongoing investigation.
00:10:14.880As much as half, half, 50% of the roughly $18 billion Minnesota has spent since 2018 on 14 Medicaid programs, particularly vulnerable to abuse, may have been siphoned off by fraudsters, according to U.S. Assistant Attorney Joe Thompson.
00:10:34.380Thompson made the remarks as prosecutors announced additional charges in the ongoing investigation of the staggering industrial-scale fraud engulfing the state.
00:16:17.420I think in bright blue states, where the Democrats control all of the levers of government, all of the machinery,
00:16:25.360I think the same incentives that cause the Democrat politicians in Minnesota to try to buy votes by allowing people to rob the taxpayers blind,
00:16:35.100I think those exact same incentives are playing out in New York, I think those exact same incentives are playing out in Illinois,
00:16:41.400and I think those exact same incentives are playing out in California.
00:16:44.700So I'm calling on the Trump administration to audit.
00:16:48.180Audit every state, but start with the big blue states, because I think that is where you are most likely to find.
00:16:55.640Find the fraud where the pattern is the same.
00:16:58.760And I got to tell you, people like Gavin Newsom are sweating right now.
00:17:03.300They don't want anyone looking at the fraud in California, because the incentives are identical,
00:17:10.800and I suspect you're going to see the very same pattern playing out over and over and over again.
00:17:17.460You know, you mentioned that they don't want you looking.
00:17:19.760There was a very interesting playbook.
00:17:21.420When Democrats get in trouble, they usually just start playing the race card, throwing down the race card.
00:17:25.480Tim Waltz had a press conference, and he was asked about the fraud in the Somali community,
00:17:29.460the money going back to the terrorist organization al-Shabaab, and how much just total pure corruption there was.
00:17:36.960And then he was asked about ICE raids in Minnesota.
00:19:01.180Like, he has literally overseen the biggest recorded fraud in U.S. government history.
00:19:09.000Not just a fraud on the taxpayers that defrauded the taxpayers of Minnesota, that defrauded the taxpayers of every state, federal taxpayers,
00:19:17.480but also that saw the federal tax dollars diverted to illegal immigrants, to Somalis, who sent it to Al-Shabaab, a radical Islamic terror organization.
00:19:34.880And what is Tim Walz's response to scream white supremacy, white supremacy?
00:19:40.320At some point, those talking points get a little tired, and it's a clear and transparent effort just to avoid any accountability and to avoid being held responsible for what he allowed to happen.
00:19:55.200As before, if you want to hear the rest of this conversation on this topic, you can go back and download the podcast from earlier this week to hear the entire thing.
00:20:03.480Canadian women are looking for more, more out of themselves, their businesses, their elected leaders, and the world around them.
00:20:10.640And that's why we're thrilled to introduce the Honest Talk podcast.
00:20:52.140And it was, I tell you what, if there's anybody that had coal in their stocking, it was the media.
00:20:56.700There was an article that came out by the New York Times predicting the complete opposite of what GDP reports showed.
00:21:03.740Of course, they're not going to retract it, but they do look like idiots.
00:21:06.660And again, you've got to ask yourself this question.
00:21:09.120Are they really willing and wanting to hurt Americans?
00:21:12.260They want Americans to suffer just so Donald Trump looks bad?
00:21:15.340Because that's what their reporting seems to look like.
00:21:17.660Well, listen, the news that broke just this week is the economy is booming, that the latest GDP numbers show 4.3% GDP growth, which is terrific GDP growth.
00:21:30.880And let me read from the Wall Street Journal.
00:21:32.660Consumers power strongest U.S. economic growth in two years.
00:21:36.920A long-delayed government report shows third-quarter GDP grew at an annual 4.3% rate.
00:21:44.500Robust spending by U.S. consumers drove greater-than-expected economic expansion in the third quarter,
00:21:49.840and the strongest growth rate in two years.
00:21:52.920Gross domestic product, the value of all goods and services produced across the economy,
00:21:58.080rose at a seasonally and inflationally adjusted 4.3% annual rate from July through September, the Commerce Department said Tuesday.
00:22:07.760The report was delayed nearly two months by the government shutdown,
00:22:11.140and looks back at the period before the shutdown was in effect.
00:22:14.920It does, however, offer a snapshot of an economy that has managed to keep humming along for much of the year.
00:22:21.940Growth picked up from 3.8% in the previous corner,
00:22:26.520and easily beat the 3.2% forecast among economists polled by the Wall Street Journal.