“Immigrants Don’t Drain Welfare; They Fund It”: Immigrants Have Long Given More To The Welfare System Than They Take From It
Republican presidential candidates who want to deport undocumented immigrants en masse, end birthright citizenship, and build a wall along the Mexican border just got some new ammunition. A report released Wednesday by the Center for Immigration Studies, an organization that advocates for reducing immigration to the United States, has concluded that 51 percent of households headed by immigrants—legal or undocumented—receive some kind of welfare. “They are creating a significant burden on public coffers,” writes Steven Camarota, the study’s author and the director of research for CIS. “By using welfare programs immigrants may strain public resources, harming taxpayers and making it more difficult to assist the low-income population already in the country.”
While that sentiment is likely to resonate with conservatives, the facts prove otherwise: Native-born Americans aren’t footing the bill for immigrants so much as immigrants are contributing to a welfare system that many of them can’t take advantage of.
The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 cut back on welfare extended to immigrants. It categorized green card holders and refugees granted asylum as “qualified,” and all other immigrants—including undocumented workers and many people lawfully here in the United States—as “not qualified” and therefore ineligible for welfare. But the law stipulated that even qualified immigrants had to spend five years in the United States before they could apply for benefits like Medicaid, food stamps, or cash assistance for families with children. Since that major welfare reform, some states have responded by providing for immigrants with programs that offer health care to the children of immigrants or pregnant mothers, and a few states—like California and New York—offer nutritional or cash assistance. But those efforts are mostly limited to qualified residents, while all other immigrants are still almost universally banned from receiving welfare.
The CIS study exaggerates the number of immigrants on welfare by using households as the unit of analysis; as long as the head of household is an immigrant, they consider it an immigrant household, and Camarota counts a household “as using welfare if any one of its members used welfare during 2012.” This means that a household with an American spouse who therefore qualified for welfare could be counted as “using welfare.” The same would go for a child born in the United States to immigrant parents. If he or she received subsidized lunch at school, the whole household would be categorized as “using welfare.” As the Cato Institute notes in its critique of the study, that measure is “ambiguous, poorly defined, and less used in modern research for those reasons.” Relying on such mutable methodology let Camarota exaggerate the number of immigrants on welfare to back up the claim that Americans are footing the bill for immigrants.
Groups like The American Immigration Council have long argued that, contra conservative depictions of “moocher,” immigrants have long given more to the welfare system than they take from it. “In one estimate, immigrants earn about $240 billion a year, pay about $90 billion a year in taxes, and use about $5 billion in public benefits,” a 2010 report by the Council found. “In another cut of the data, immigrant tax payments total $20 to $30 billion more than the amount of government services they use.” And a report by the U.S. Chamber of Commerce in 2013 found that “more than half of undocumented immigrants have federal and state income, Social Security, and Medicare taxes automatically deducted from their paychecks.” Those immigrants are essentially helping to underwrite the welfare system, providing an enormous subsidy to it every year without being able to reap any of the benefits.
Camarota rejects that conclusion.
“We have an immigration system that lets in vast numbers of unskilled laborers. We tolerate illegal immigration,” he said in an interview. “Pretty much everyone concludes that it’s going to be a net drain.” He wants to institute a “selective” immigration system, one that cuts back on the number of immigrants and places an emphasis on allowing only educated, not unskilled, workers into the country.
Many economists would advise against such a plan. From construction sites in Virginia to farms along the California coastline, immigrants provide essential labor in an evolving economy. The Chamber of Commerce report found they are more than twice as likely as native-born Americans to start a new business each month. In fact, immigrants started 28 percent of all new businesses in the United States in 2011. Immigrants pay billions in taxes to the government every year; in Texas alone, they generate $1.6 billion annually in taxes. To deport millions en masse, sending them back to their home countries—to say nothing of Donald Trump’s proposal to uproot American citizens born here—would be economically disastrous.
By: Laura Reston, The New Republic, September 3, 2015
“Media Playing The Role Of Enabler”: Out Of Touch Punditry Should Get A Grip — Hillary’s Email Is Non-Story
A message to the out-of-touch Washington pundit class: get a grip. What was or was not on Hillary Clinton’s email server when she was Secretary of State is not a game-changing news story.
In fact, no one outside the chattering class — and right-wing true believers — could give a rat’s rear about this story — and there is a good reason: there is no “there” there. If someone really thinks the great “email” story — or the Benghazi investigation — are going to sink her candidacy, I’ve got a bridge to sell them.
Of course, this is not the first time that the media — with an assist from right-wing political operatives — have laid into Hillary Clinton in an attempt to create a “scandal” where there was none.
Over the weekend, syndicated columnist Gene Lyons quoted a New York Times editorial as saying:
“These clumsy efforts at suppression are feckless and self-defeating.” It argued that these actions are “swiftly draining away public trust in (her) integrity.”
That editorial actually appeared in January 1994. The Times was expressing outrage at Hillary Clinton’s turning over Whitewater documents to federal instigators rather than the press, which, as Lyons pointed out, ” had conjured a make-believe scandal out of bogus reporting of a kind that’s since become all too familiar in American journalism.”
Speaking on NPR’s Diane Rehm show, the Atlantic’s Molly Ball sounded the same notes 21 years later. The email issue “continued to contribute to the perception that she has something to hide.”
The Times’ Sheryl Gay Solberg added that the email issue “creates and feeds into this narrative about the Clintons and Mrs. Clinton that the rules are different for them, and she’s not one of us.” Really?
What might really feed a negative narrative would be the New York Times’ own story several weeks ago that falsely accused Ms. Clinton of being under criminal investigation. Which she is not and never was. The Times public editor acknowledged that the story was false and that it fed another narrative: that the New York Times had an ax to grind against the Clintons.
Of course the bottom lines of this story are simple:
At the time Ms. Clinton was Secretary of State there was no prohibition against the Secretary of State having a private email server. In fact, no Secretary of State before Ms. Clinton had a government email account.
None of the emails on the Secretary’s personal account were classified at the time they were sent or received. That is not in dispute. There is an on-going controversy between various agencies of what ought to be classified in retrospect as the material is released to the public by the State Department, but that does not change the fact that none of it was classified at the time. In fact, one of the several emails at issue actually says the word “unclassified” in the upper left hand corner and can still be accessed by the general public on the State Department web site.
Finally, no one has ever pointed to an instance where the fact that something was on her server instead of a government server had any negative consequences whatsoever.
There is no issue here, period.
And as for the Benghazi “affair,” none of the many investigations that have already been completed concerning the events surrounding the death of the American Ambassador to Libya in the Benghazi attack has found a shred of evidence that that Hillary Clinton did anything wrong whatsoever leading up to or in response to that attack.
And frankly if you ask most people about the Benghazi affair they think you’re talking about something you rub on your muscles to reduce pain.
So now Congressman Trey Gowdy, who is the Chair of the Select Committee that was set up by the Republicans in the House to once again investigate this non-scandal, has decided to investigate the non-existent issue of the Clinton email server as well — even though he acknowledges that it has nothing to do with Benghazi.
Not withstanding the lack of substance to any of these issues, people like Chris Cillizza of the Washington Post proclaim that they could be a terrible weight on her candidacy.
Who exactly are these pundits talking to? Rarely have they been so out of touch with the real American electorate. The perceptions and narratives they are discussing are the perceptions and narratives of the insider pundit and political class — not normal voters.
And the same goes for often-unnamed Clinton backers that are wringing their hands that Clinton has not yet put the email issue behind her.
No one is handed the American presidency — and that is especially true of a candidates that are not incumbent Presidents.
Every candidate faces many challenges and hurdles to getting elected — and Hillary Clinton is no different. But the email-server issue is not one of them.
Clinton’s campaign completely recognizes that it must fight for every delegate in the primaries and every vote in the general election.
In the general election, she must motivate Democratic base voters to turn out in massive numbers. She must excite new voters — especially young people and women. And she must persuade undecided voters that she will fight effectively to actually change the rules of the political and economic game so that we have economic growth that benefits every American, not just Corporate CEO’s and Wall Street Banks.
These are her real challenges — and her campaign is focused like a laser on meeting those challenges.
It’s time for her supporters to focus on those challenges as well — and for the media to resist continuing to play its role as enabler of baseless right wing attacks like the great email and Benghazi “scandals” of 2015.
By: Robert Creamer, Political Organizer, Strategist, Author; Partner Democracy Partners; The Blog, The Huffington Post, August
“The Hillary Doubters Are Wrong”: Yes, She’s Vulnerable, But She’s Still The Heavy Favorite
When it comes to Hillary Clinton and her place in the presidential primary, the political media needs to start being able to hold two ideas in mind at once. The first, and most familiar to anyone who has followed this campaign, is that Clinton is vulnerable.
Her email—and use of a private server—has grown from a scandal to a fiasco. The FBI has stepped in with an investigation to see if Clinton’s system was compromised by foreign hackers, and to see if she knowingly passed classified information—including “top secret” intelligence—through her server. Clinton is also due to face a House select committee for a public hearing on the 2012 attack on an American consulate in Benghazi, Libya. Maybe she’ll perform well and avoid missteps. But she might stumble, exposing herself and her campaign to more attacks and scrutiny.
There have also been challenges on key policy questions. To the most vocal progressive activists, Clinton still needs to account for her role in the Bill Clinton White House on issues like mass incarceration, police militarization, and the drug war. As first lady, for example, she pushed the “three strikes” provision of the 1994 crime bill and supported greater prison time for offenders. “There is something wrong when a crime bill takes six years to work its way through Congress and the average criminal serves only four,” she said at the time. The same is true for her positions in the Senate, where she voted in favor of federal police funding that flowed to SWAT teams and other vectors for militarization. There’s also her economic record: As a senator from New York, she backed a 2001 bill that would become the much loathed (among liberals) 2005 bankruptcy law. And she still hasn’t acknowledged or apologized for the racially tinged rhetoric used by her campaign in the most heated moments of her 2008 race against Barack Obama.
But, again, this isn’t the whole story. There’s still that other idea about Clinton to keep in mind, even as we consider her problems and weaknesses: Clinton is winning the Democratic presidential primary, and it’s not even close.
Despite the reporting around it—which has treated her as a losing candidate—the latest Quinnipiac poll shows Clinton with a wide lead over her opponents. She wins 45 percent of the Democratic Party, to 22 percent for Vermont Sen. Bernie Sanders and 18 percent for Vice President Joe Biden. Aggregate polls show a similar picture; in the Huffington Post Pollster average, Clinton holds 48.9 percent of the primary vote, compared with 22.5 percent for Sanders and 12.5 percent for Biden. There’s no contest.
There’s an easy and obvious rejoinder: What about 2008? Wasn’t Clinton winning at this point in that primary; wasn’t she “inevitable”? And look what happened: She lost to a popular upstart with the public behind him.
This sounds persuasive, but it doesn’t fit the facts. As writer Harry Enten notes for FiveThirtyEight, Clinton was much weaker in the previous primary than she is now. “Back in 2008,” he writes, “she was trailing in early Iowa polls. She earned only a third of the vote in early New Hampshire polls and was below 40 percent nationally.” Now, by contrast, she’s well ahead in national polls, well ahead in Iowa, and only somewhat behind in New Hampshire.
Moreover, because primaries aren’t popularity contests, the most important measure of success is party support. Barack Obama wasn’t an upstart; behind his run was the party machinery, or at least the part that didn’t want Clinton. Today, where do Democratic fundraisers stand? What do Democratic interests groups think? How will Democratic lawmakers act?
On each score, Clinton isn’t just winning—she dominates. Most fundraisers are in her corner; it’s why Biden will have a hard time raising money if he decides to run. Interest groups are still quiet, but Democratic lawmakers are overwhelmingly pro-Hillary. Clinton has more than 100 endorsements from sitting Democrats, including seven governors and 29 senators. Biden, who doesn’t appear to have decided whether to run yet, has two. Former Maryland Gov. Martin O’Malley has one. Bernie Sanders has none. This is unprecedented. Not only is Clinton ahead of her previous endorsement total, according to analysis by FiveThirtyEight, but she’s racked up more endorsements of significance at this stage of the race than any nonincumbent Democratic presidential candidate, ever. At this point in 1999, for instance, Al Gore had two-thirds as many endorsement points (a measure that weights senators and governors more than House representatives) as Clinton does now; at this point in 2003, John Kerry had less than one-tenth Clinton’s current support; at this point in 2007, Obama had less than one-sixth. The closest analogue to Clinton isn’t anyone in the Democratic Party—it’s George W. Bush, who had much greater endorsement support than Clinton at this stage of the 2000 Republican presidential primary and ultimately won easily, despite an early challenge from John McCain.
Of course, life is arbitrary, and Hillary’s campaign could still fall apart. It’s not hard to imagine how it might happen: The FBI investigation could lead to indictments, ending Clinton’s campaign with a court appearance. Or, she could refuse to answer any questions on her previous positions and open space for a challenger.
Then again, neither email nor crime is an impossible albatross; other candidates have had worse. George H.W. Bush had to deal with fallout from Iran-Contra, while Al Gore had Bill Clinton’s impeachment in the background. Both won their respective nominations with little difficulty. Sure, Clinton could lose. But it’s hardly a live possibility.
By: Jamelle Bouie, Slate, August 27, 2015
“Hey, Middle Class; Hillary Gets It”: Linking The Concepts Of Fairness And Growth
Here’s one thing I’m sure of about the economic speech Hillary Clinton gave Monday morning at the New School: If a relatively unknown Democratic governor of Illinois or Michigan were running for president, and he gave the speech Hillary Clinton gave Monday morning at the New School, rank-and-file liberals would be turning rapturous cartwheels. She correctly identified the central economic problem of our time; she talked very clearly about the kinds of solutions she’d pursue to address it; she even tossed a few threats in Wall Street’s direction.
The problem is the wages of middle-class workers. The solutions are varied but boil down to a range of policies that would do two things: one, give corporations incentives to share profits and think less about short-term profit-maximization; two, help middle-class families meet the life expenses (college tuition, day care, etc.) that have increased greatly over the last 20 years while wages have remained stagnant. And as to Wall Streeters who gamble with middle-class people’s money, she said, “We will prosecute individuals and firms” who do so. She used the word “criminal” in this context more than once.
My hypothetical governor giving exactly this speech would be showered with liberal praise. But Clinton says it, and it’s like so what. She faces too much distrust from liberals over her past centrism; and for the moment everybody’s all Bernie Bernie Bernie. And that’s all fine. Sanders is fun and sometimes exhilarating, and a primary contest needs a candidate who can speak the unvarnished truth.
But it’s the speakers of varnished truth who usually win presidential nominations, and Clinton is at least 90 percent likely to win this one. And as varnished truths go in Democratic presidential politics, Clinton’s are about as liberal as any liberal could reasonably hope for. There’s an art to taking it right up to line, but not an inch past, and she’s doing that.
One way of testing whether proposals have any ideological bite to them is to imagine whether anyone from the other party could put them forward. Everyone can and will say they want to help the middle class. But how? Jeb Bush says with 4 percent growth into infinity. First of all this is a big fat lie of a promise, and he’s surely smart enough to know he’s lying. From 1975 to 2014 (for 40 years), annual GDP growth in the United States averaged 2.79 percent, according to World Bank data (the stuff I used came in the form of an Excel spreadsheet, so there’s no URL, but Google something like “Real Historical Gross Domestic Product” and you’ll find it). So it doesn’t happen. The best years of sustained GDP growth we’ve ever had were under—yep—Bill Clinton, but even in the late 1990s, we had only four straight years of plus-4-percent growth, and that’s a modern record (there was a three-year run under Ronald Reagan from 1983-1985).
So it’s a lie, number one, but more importantly, it means nothing as a measure. No, actually, it means something, and what it means is toxic: It means that if we actually do experience growth at 4 percent but without taking any of the ameliorative measures Clinton is talking about, the main impact of that growth will be to give us more inequality, more wage stagnation, more corporate profit-hoarding, more stock buybacks, and more roulette-wheel banking. Bush’s is a flawed way of looking at the economy, and this is a very old point of contention between right and left; As Robert Kennedy once said, GDP “measures everything, in short, except that which makes life worthwhile.”
Clinton is talking about growth too, but she’s emphasizing equitable growth. And she puts forward numerous proposals that no Republican would touch, from raising the minimum wage—remember, Bush wants no federal minimum wage—to strengthening unions to offering paid family leave to cracking down on employers who misclassify workers as contractors to expanding on Dodd-Frank to endorsing the Buffett Rule, which applies a minimum effective tax rate of 30 percent on earners north of $1 million.
She left a lot of the details for later, and she was fuzzy here and there—she was noncommittal on trade, and it will be interesting to hear what “defending and enhancing” Social Security actually means.
But for now, it’s enough that she’s linking the concepts of fairness and growth and that she’s making that link the centerpiece of her economic agenda. This is important because until very recently, the economics profession hasn’t regarded fairness as anything it should care about. But that has begun to change. This was the big question in my mind last year as I contemplated Clinton’s candidacy last year. Believe me, I had no small amount of doubt about how aggressively she’d embrace the equitable growth proposition. I’d say she’s answered my questions. Last year, on her book tour, she pooh-poohed paid family leave. Now it’s a centerpiece of her platform.
It’s still going to take time for liberals to believe this, and of course some never will. This is where Clinton still has some work to do. When it comes to economics, liberals don’t really want to hear policy proposals. They want to hear FDR-style attacks on the economic royalists. This is not something Clinton is known for, to put it mildly. I don’t think anyone expects her to be Elizabeth Warren, but in her own way, she has to go there, especially when you consider that she might become the wealthiest president in modern times.
This, from the speech, started moving in that direction, and it’s the first time I recall her talking like this: “And while institutions have paid large fines and in some cases admitted guilt, too often it has seemed that the human beings responsible get off with limited consequences—or none at all, even when they’ve already pocketed the gains. This is wrong and, on my watch, it will change.”
Maybe if she keeps this up and the royalists start attacking her, and she stands her ground, the Warrenites will finally come around. In the meantime, liberals ought at least to recognize that the old cautious Hillary they have in their minds would never have gone this far this fast.
By: Michael Tomasky, The Daily Beast, July 14, 2015
“Greece’s Economy Is A Lesson For Republicans In The U.S.”: The Toxic Combination Of Austerity With Hard Money
Greece is a faraway country with an economy roughly the size of greater Miami, so America has very little direct stake in its ongoing disaster. To the extent that Greece matters to us, it’s mainly about geopolitics: By poisoning relations among Europe’s democracies, the Greek crisis risks depriving the United States of crucial allies.
But Greece has nonetheless played an outsized role in U.S. political debate, as a symbol of the terrible things that will supposedly happen — any day now — unless we stop helping the less fortunate and printing money to fight unemployment. And Greece does indeed offer important lessons to the rest of us. But they’re not the lessons you think, and the people most likely to deliver a Greek-style economic disaster here in America are the very people who love to use Greece as a boogeyman.
To understand the real lessons of Greece, you need to be aware of two crucial points.
The first is that the “We’re Greece!” crowd has a truly remarkable track record when it comes to economic forecasting: They’ve been wrong about everything, year after year, but refuse to learn from their mistakes. The people now saying that Greece offers an object lesson in the dangers of government debt, and that America is headed down the same road, are the same people who predicted soaring interest rates and runaway inflation in 2010; then, when it didn’t happen, they predicted soaring rates and runaway inflation in 2011; then, well, you get the picture.
The second is that the story you’ve heard about Greece — that it borrowed too much, and its excessive debt led to the current crisis — is seriously incomplete. Greece did indeed run up too much debt (with a lot of help from irresponsible lenders). But its debt, while high, wasn’t that high by historical standards. What turned Greek debt troubles into catastrophe was Greece’s inability, thanks to the euro, to do what countries with large debts usually do: impose fiscal austerity, yes, but offset it with easy money.
Consider Greece’s situation at the end of 2009, when its debt crisis burst into the open. At that point Greek government debt was near 130 percent of gross domestic product, which is definitely a big number. But it’s by no means unprecedented. As it happens, Greece’s debt ratio in 2009 was about the same as America’s in 1946, just after the war. And Britain’s debt ratio in 1946 was twice as high.
Today, however, Greek debt is over 170 percent of G.D.P. and still rising. Is that because Greece just kept on borrowing? Actually, no — Greek debt is up only 6 percent since 2009, although that’s partly because it received some debt relief in 2012. The main point, however, is that the ratio of debt to G.D.P. is up because G.D.P. is down by more than 20 percent. And why is GDP down? Largely because of the austerity measures Greece’s creditors forced it to impose.
Does this mean that austerity is always self-defeating? No, there are cases — for example, Canada in the 1990s — of countries that slashed their debt while maintaining growth and reducing unemployment. But if you look at how they managed this, it involved combining fiscal austerity with easy money: Canada in the ’90s drastically reduced interest rates, encouraging private spending, while allowing its currency to depreciate, encouraging exports.
Greece, unfortunately, no longer had its own currency when it was forced into drastic fiscal retrenchment. The result was an economic implosion that ended up making the debt problem even worse. Greece’s formula for disaster, in other words, didn’t just involve austerity; it involved the toxic combination of austerity with hard money.
So who wants to impose that kind of toxic policy mix on America? The answer is, most of the Republican Party.
On one side, just about everyone in the G.O.P. demands that we reduce government spending, especially aid to lower-income families. (They also, of course, want to reduce taxes on the rich — but that wouldn’t do much to boost demand for U.S. products.)
On the other side, leading Republicans like Representative Paul Ryan incessantly attack the Federal Reserve for its efforts to boost the economy, delivering solemn lectures on the evils of “debasing” the dollar — when the main difference between the effects of austerity in Canada and in Greece was precisely that Canada could “debase” its currency, while Greece couldn’t. Oh, and many Republicans hanker for a return to the gold standard, which would effectively put us into a euro-like straitjacket.
The point is that if you really worry that the U.S. might turn into Greece, you should focus your concern on America’s right. Because if the right gets its way on economic policy — slashing spending while blocking any offsetting monetary easing — it will, in effect, bring the policies behind the Greek disaster to America.
By: Paul Krugman, Op-Ed Columnist, The New York Times, July 10, 2015