U.S. Budget — Military and Social Security

Deceptive and Counterproductive.

Discussion ebbs and flows on the topic of U.S. spending. Of particular interest to several of my liberal friends is military spending. Frequent Facebook posts on this subject claim that military spending consumes over half the budget.

I agree that the military is not an ideal place to invest so many billions of dollars. I also agree that the U.S. has a history of blowing money on weapons and aggression. Further, I question whether the U.S. uses military means when a better, longer-lasting path to peace and stability in troubled parts of the world would be investments in education, infrastructure, agriculture, and commercial development.

All that said, I have to protest the continuing use of incorrect data in arguing against military spending. The cause for less military spending is not enhanced by presenting incorrect information. Just the opposite.

The accurate 2017 budget breakdown:

Please note that the portion designated military spending occurs in the lower left  of this pie chart and as such does not constitute half of the U.S. budget. It’s important to discriminate between a breakdown of discretionary spending and overall spending. Discretionary spending is one category of overall spending. It’s within the slice of pie of discretionary spending where we see the big bite that goes to the military:So yes, military spending within its slice of pie of discretionary spending, is over half the budget. And there’s no limit to the close examination this distribution of funds deserves. But please, let’s make our arguments based on the actual facts.

A second realm of considerable error by liberals calls for a shift in U.S. spending to better honor social programs like Social Security. A popular mantra on social media these days mistakenly claims that we ‘own’ our retirement funds because we paid into them. The following discussion spells out the facts:

“It’s My Money” [WRONG!]

* A common perception about Social Security benefits is: I am entitled to the money. It’s my money. I’ve saved it.

* Social Security is mainly a “pay-as-you-go” program. This means that it pays most of its benefits by taxing people who are currently working.

* Per the Social Security Administration: The money you pay in taxes is not held in a personal account for you to use when you get benefits. Your taxes are being used right now to pay people who now are getting benefits. Any unused money goes to the Social Security trust funds, not a personal account with your name on it.

* From the start of the Social Security program in 1937 through the end of 2016:

  • 94% of all Social Security payroll taxes were spent in the same year they were collected.

  • 13% of Social Security’s total income (including payroll taxes, taxes on Social Security benefits, transfers from the general fund of the Treasury, and interest on the Social Security Trust Fund) has accumulated in the Social Security Trust Fund.

* Per the Social Security Administration: Since the Social Security system has not accumulated assets equal to the liability of promised future benefits, the social security wealth that individuals hold represents a claim against the earnings of future generations rather than a claim against existing real assets.

* After the federal government pays back with interest all of the money it has borrowed from Social Security, the program’s current claim against the earnings of future generations is $30.8 trillion. This amounts to an average of $132,914 for every person now receiving Social Security benefits or paying Social Security payroll taxes.

* Per the Social Security Administration: There has been a temptation throughout the program’s history for some people to suppose that their FICA payroll taxes entitle them to a benefit in a legal, contractual sense. … Congress clearly had no such limitation in mind when crafting the law. … Benefits which are granted at one time can be withdrawn.…

* In 1960, the U.S. Supreme Court ruled (5 to 4) that entitlement to Social Security benefits is not a contractual right. [emphasis added]

[For more discussion of Social Security taxes, allocations, and projections, visit the Just Facts page.]

So let’s get our heads screwed on straight, fellow progressives. While a large chunk of U.S. tax dollars go to military expenditures, it is NOT consuming over half of our tax dollars. Our Social Security and Medicare funds are NOT held for our future use like individual savings accounts, but rather are spent immediately in payouts to persons currently receiving Social Security and Medicare benefits.

If we expect to prevail in directing our nation toward a more equitable and socially conscientious future, we need to be well informed and make our arguments for social justice in ways that make sense and align with the facts.

That is all. For now.


America’s New Greatness

It’s been a crushing year. One after another, hard-won social advancements have been blocked or dismantled in the rush to “Make American Great Again.” But what does that even mean?

Exactly when was America greater? When everyone used outdoor toilets? When women couldn’t work outside the home? When skin color decided who could marry whom, or vote, or eat at a lunch counter?

Is ‘great again’ a worthy goal, the best we should expect? Is the conservative mantra right, that free enterprise and individual liberty “under limited government” was and forever will be the pinnacle of human achievement? If only we could rid ourselves of this ‘big government’ and free ourselves of onerous taxation, would the U.S. of A. become the shining star of the days of yore?

No, no, and no.

Let me explain. At the time of the Founding Fathers, ‘free enterprise’ applied to white male landowners. The constitution ignored the rights of women and non-landowners. Voting rights for Natives or slaves never entered the discussion. The founders conceived of a nation of educated, well-to-do white men who used women, natives, and slaves to meet self-serving goals in creating heirs, seizing ever greater slabs of the continent, and forcing labor from non-whites in order to sustain and increase their wealth.

They weren’t evil men. That’s just how things had always been. No wonder certain white males today would see those as the glory days.

But there’s no lack of free enterprise. Men and women of any class or color routinely open their own businesses. Three out of ten workers in the U. S. are self-employed or are hired by self-employed persons.[1] The ‘small business’ community provides the majority of American jobs.

…large businesses only employ about 38 percent of the private sector workforce while small businesses employ 53 percent of the workforce. In fact, over 99 percent of employing organizations are small businesses and more than 95 percent of these businesses have fewer than 10 employees. The reality is that most Americans are employed by a very small business that has little in common with the tiny sliver of the business demographic represented by corporate America.[2]

The complaint of conservatives is that free enterprise is hindered by big government. They rail against requirements that employers pay into insurance policies that provide medical care for workers injured on the job or that provide health care that meets the employees’ needs. Employers also must pay into Social Security and Medicare funds on a 50-50 basis with the employee’s withheld funds. Employers are required to deduct the appropriate amount of state and federal income tax from employee wages and to deposit this tax into government accounts. Employers also must provide a wage statement at the end of each year (W-2, 1099, etc.).

These requirements annoy the hell out of employers. When I operated my own café, I spent hours working on payroll. I resented spending money on workman’s compensation insurance – I never had an injured employee and all that I paid was money down a hole. But I understood the reason for it. If an employee had become injured, should I expect the government to pay for medical care? Should I personally pay for it? Should the employee be abandoned to pay himself?

These are old problems solved incrementally over a long period of American history back when a majority of legislators worked for the people instead of themselves. We stopped sending disabled or aged persons to poor farms where a pitiful stipend from the state supported them along with the random generosity of wealthy donors who might drop a few crumbs from their tables. We stopped allowing employees to be injured or killed in unsafe workplaces. We required people and their employers to set aside funds for retirement.

Like the Affordable Care Act, social support systems developed by our elected representatives to better provide for the ‘general welfare’ are an evolved safety net for all of us. The simplistic idea that these systems should be dismantled in pursuit of some long-vanished ideal of “free enterprise” fails to recognize all the reasons these systems came into being in the first place. We need them. They serve an important purpose.

‘Individual liberty’ is another often-touted phrase by deconstructionist conservatives. What that concept meant to the founders no longer applies in our current reality. The founders lived on the edge of an unexplored country with such a vast reserve of lands that no one could imagine a time when there weren’t new horizons where young men could ‘go West’ to make their fortunes. Individual liberty was possible only because men gained forty acres or more by simply staking a claim or, in many cases, serving in the military after which they received land grants.[3]

What land is free now? None.

What we took from the Natives was a virgin continent full of natural resources. The lands of Europe had been exploited for over two thousand years and here was a whole new start. Individually and collectively, we harvested those resources while patting ourselves on the back about how smart and industrious we were in building a fabulous new nation. We never considered that sooner or later, the last farmland would be plowed, the last gold nugget would be found, and we would run smack up against the end of the bonanza. We did the same thing here that our forefathers had done in Europe.

Conservatives, enraptured with these myths of a glorious past, believe we can return to times when anyone who wanted to work hard could simply plow his way to success with a mule and a compliant wife. Women, keen for their own ‘individual liberty,’ aren’t so compliant anymore. Farming is no longer a viable path to sufficient livelihood.

Obviously our living standards have changed. No more outdoor toilets or working the fields from dawn to dusk. We’re dependent on electricity and modern medical care and automobiles, all things that as recently as a hundred years ago simply did not factor into the picture for a majority of Americans.

Ever in pursuit of their bankrupt myth, the conservatives’ last gasp is the current grab of political power, attained by selling the myth to those who don’t understand. The conservatives are busy ending food and medical care for the aged, the homeless, and other needy segments of the population. The entire social net crafted over decades is being dismantled in a futile grab for a long-lost past.

The descendants of European colonialism want the glory back. They don’t agree that taking from the rich and giving to the poor is the right approach for modern societies. European nations have already grasped this concept. America today and in the future can never be the America of 1800 or 1900 or even 1950.

Making profit off of sick people or school children is immoral. Just as government regulates utilities, so it must regulate other services required by everyone, including health care and the internet. This is not an appropriate arena for capitalism. Government, not profit-driven capitalists, serves as the most efficient provider for the common welfare –healthcare, affordable housing, education, public transportation, infrastructure like bridges and railways, and a vast network of social services.

Reducing the tax burden for the wealthiest among us accomplishes nothing but the impoverishment of our entire nation. The current imbalance of wealth is clear evidence that the rich should be taxed even more. Expanded social programs should ensure that those at the lowest income levels are brought into counseling, health care, education, and training programs in order to improve their economic status.

We’re a largely urban, multicultural society now, completely different from what the Founding Fathers knew. Just as the founders were right to declare the rights of personal liberty, so were progressives right to end discrimination against minorities, women, and the handicapped and to provide mechanisms by which the damages of such long-term discrimination could be healed. It’s the progressives who have understood that the safety net must be available equally from state to state, a service that only the federal government can ensure.

The personal bankruptcy of a small number of men like Donald Trump and Steve Bannon cannot be allowed to dictate the future of our country. Such men long for a culture where white maleness guarantees ascendancy. Without a white male-dominated social structure, they cannot gain the power they so desperately crave. These are weak men dependent on the subjugation of others for emotional and economic support. They will die off just as the Neanderthal died off.

It’s called failure to evolve.

Here’s a toast to 2018 and the continuing evolution of our great nation.




[1] http://www.pewsocialtrends.org/2015/10/22/three-in-ten-u-s-jobs-are-held-by-the-self-employed-and-the-workers-they-hire/

[2] https://www.huffingtonpost.com/kristie-arslan/five-big-myths-about-amer_b_866118.html

[3] Bounties of up to 1,100 acres were granted for Revolutionary War service between 1775 and 1783 and up to 320 acres for the War of 1812 through 1815. Additional free lands went to men fighting in the Mexican War 1846-1848 and in Indian Wars from the 1780s through the 1890s. While outright land grants ended in 1855, Union soldiers who fought in the Civil War received homestead rights along with others meeting certain criteria. Much more on land grants and homestead rights at Wikipedia.


Medicaid and the Chemical Industry

Figure 4: Medicaid is the third largest domestic program in the federal budget.

As of 2002, the majority of Medicaid beneficiaries (54%) were children under the age of six years. Contrary to the popular myth of aging slackers, drug addicts, and welfare queens sucking at the national teat, this majority of Medicaid provides healthcare to children and adolescents with limitation of activity due to chronic health conditions. Their numbers quadrupled from two percent in 1960 to over eight percent in 2012.[1],[2]

This increase parallels the growth in manufacture and use of agricultural chemicals.

One of the fastest growing patient groups covered by Medicaid is children with developmental disabilities. Over the last 12 years, the prevalence of developmental disabilities (DDs) has increased 17.1%—that’s about 1.8 million more children with DDs in 2006–2008 compared to a decade earlier: autism increased 289.5% and ADHD increased 33.0%.

According to a recently released study, children with special health care needs suffer conditions that include

autism, Down syndrome, and other intellectual and developmental disabilities (I/DD); physical disabilities such as cerebral palsy, spina bifida, and muscular dystrophy; mental health needs such as depression and anxiety; and complications arising from premature birth. They may need nursing care to live safely at home with a tracheotomy or feeding tube; attendant care to develop community living skills; medical equipment and supplies; mental health counseling; and/or regular therapies to address developmental delays.[3]

One source puts the annual cost of caring for a child with severe autism at $72,000.

What is happening?

Consider the case of Eva Galindos, a twelve-year-old girl with autism. At age three, she was diagnosed by her pediatrician, but he could not answer the parents’ urgent questions about why this happened to their child. Seeking answers, the Galindos family participated in a study. At the time of Magda Galindos’ pregnancy with Eva, “the family was living in Salida, a small town in central California surrounded by fields of almonds, corn, and peaches. The Galindos could see the planted fields just down the street from their stucco house.” Magda recalled the acrid smell of chemicals sprayed on the fields, very different from the fertilizer odor.

The study revealed that during pregnancy, Magda had been exposed to chlorpyrifos.

In 2014, the first and most comprehensive look at the environmental causes of autism and developmental delay, known as the CHARGE study, found that the nearby application of agricultural pesticides greatly increases the risk of autism.[4] Women who lived less than a mile from fields where chlorpyrifos was sprayed during their second trimesters of pregnancy, as Magda did, had their chances of giving birth to an autistic child more than triple. And it was just one of dozens of recent studies that have linked even small amounts of fetal chlorpyrifos exposure to neurodevelopmental problems, including ADHD, intelligence deficits, and learning difficulties.[5]

The American use of chemicals to eradicate insects both in homes and crops dates back to lead arsenate in 1892, but as early as 900 AD, poisonous arsenic sulfides were used in China.

The search for a substitute [to lead arsenate] commenced in 1919, when it was found that its residues remain in the products despite washing their surfaces. Alternatives were found to be less effective or more toxic to plants and animals, until 1947 when DDT was found. The use of lead arsenate in the US continued until the mid-1960s. It was officially banned as an insecticide on August 1, 1988.[6]

Total global pesticide production and global pesticide imports (1940s-2000) – Tillman et al. (2002)0

DDT (Dichlorodiphenyltrichloroethane) quickly took the place of lead arsenate, even though research as early the 1940s had shown its harmful effects. After Rachel Carson’s expose Silent Spring pointed the finger at DDT for poisoning wildlife and the environment and endangering public health, the chemical was targeted by a growing anti-chemical movement. In 1967, a group of scientists and lawyers founded the Environmental Defense Fund with the specific goal of banning DDT. Despite continuing efforts, DDT is still produced for ‘vector control’ and for agricultural purposes in India, North Korea, and possibly other locations. At least three to four thousand tons of the chemical is produced annually.

Like many chemicals, DDT persists in the environment as well as in tissue of all life forms. Its biological half-life in soil is up to thirty years. Organisms at the top of the food chain suffer greater exposure as the chemical and its major metabolites of DDE and DDD accumulate in animals and plants which are then consumed by other animals.[7] Among its effects, DDT is an endocrine disruptor which can cause cancerous tumors, birth defects, and other developmental disorders.

Specifically, “endocrine disruptors may be associated with the development of learning disabilities, severe attention deficit disorder, cognitive and brain development problems; deformations of the body (including limbs); breast cancer, prostate cancer, thyroid and other cancers; sexual development problems such as feminizing of males or masculinizing effects on females, etc.”[8]

With the ban on DDT, farmers and other chemical consumers turned to chlorpyrifos.

Estimated worldwide annual sales of pesticides 1960 to 1999 in billions of dollars (Herbicides, Insecticides, Fungicides, and others) – Agrios (2005)0Despite the overwhelming evidence that chemicals lead to ever-increasing negative health effects, chemical companies are willing to spend whatever it takes to discredit the evidence in efforts to delay any meaningful regulation of those chemicals. In a lengthy article published January 14, 2017, in The Intercept, an online newsletter, author Sharon Lerner details the efforts of Dow Chemical to protect its lucrative products from EPA regulation.[9] It’s a staggering indictment not only of Dow’s strong-arm tactics but also of the willingness of legislators and government agencies to ignore their duties to American citizens.

Exposure to chemicals which are wreaking havoc on the nation’s children is suffered disproportionately by the poor. Agricultural workers live near fields where chemical sprays drift in through open windows. Inner-city poor live in housing that is routinely sprayed with pesticides despite the presence of children and pregnant women. Long-term exposure plus ingesting food laden with pesticides means that while autism rates among children across the U. S. population is one in 68, for women in poor neighborhoods or near commercial agriculture, the rate of impaired children is one in 21.

Parents such as Magda Galindos can’t afford to move away from the fields where chemicals are sprayed. She also can’t afford to buy organic food, which is often twice as expensive. Her household income and the medical needs of her daughter Eva qualify for state and federal assistance.

Which brings us back to Medicaid.

Figure 1: Type of health insurance among children with special health care needs

Despite compelling and well-documented scientific studies showing the strong link between certain chemicals and a slate of neurodevelopmental disabilities including autism, the EPA has for decades postponed any meaningful action to more strictly regulate (or ban) the culprits. In a recent publication, scientists stated:[10]

In 2006, we did a systematic review and identified five industrial chemicals as developmental neurotoxicants: lead, methylmercury, polychlorinated biphenyls, arsenic, and toluene. Since 2006, epidemiological studies have documented six additional developmental neurotoxicants—manganese, fluoride, chlorpyrifos, dichlorodiphenyltrichloroethane, tetrachloroethylene, and the polybrominated diphenyl ethers. We postulate that even more neurotoxicants remain undiscovered.

This is the tip of a massive iceberg. As reported in a 2016 PBS report on “Science Friday,”

There are more than 80,000 chemicals registered for use today, many of which haven’t been studied for safety by any government agency. But that’s about to change…somewhat. President Obama today signed into law the Frank R. Lautenberg Chemical Safety for the 21st Century Act, named after the late senator who introduced a version of the bill in 2013. This marks the first overhaul in 40 years to the Toxic Substances Control Act of 1976, the nation’s main law governing toxic chemicals.

Absurdly, the law only requires the EPA to test twenty chemicals at a time and each one has a seven-year test deadline before a five-year period during which industry is supposed to comply with any new regulation. At that rate, it will take over a century for all the current chemicals to be tested, all while about 20,000 new chemicals hit the market each year.

New EPA head Scott Pruitt, who voted for the Lautenberg bill, has stated that the law “guarantees protection of the most vulnerable by placing emphasis on the effects of exposure to chemicals on infants, children, pregnant women, workers and the elderly.”[11]

This should be a hopeful note, but even in a best-case scenario where President Trump’s EPA enacts swift meaningful restrictions on chlorpyrifos and other chemicals saturating our soil, air, and waterways, the incidence of fetal exposure and the resultant impairment of so many of our nation’s young will not abate any time soon. These chemicals wash down our rivers and linger in oceans where we harvest seafood. They soak into the walls and floors of our homes, survive in cropland that produces our fruits and vegetables, and become even more concentrated in livestock feeding on those plants.

Since developmentally disabled children form over half the nation’s Medicaid caseload at an estimated cost of about $300 billion (2015), legislators looking to reduce Medicaid expenditures should turn first to the nation’s agrochemical industries. In 2015, for example, Dow AgroSciences reported a full year profit of $962 million. In 2016, even after some losses, the company still enjoyed an $859 million profit.  Monsanto and DuPont reported similar numbers.

Why not impose a 50% tax on such profits? This would yield a modest $1.5 billion toward the Medicaid costs resulting (in part) from their products and serve as a powerful incentive to ensure such products are safe before they’re marketed.


[1] https://www.nap.edu/read/10537/chapter/4#50

[2] http://www.deseretnews.com/article/865609389/10-common-disabilities-American-children-have.html

[3] http://kff.org/medicaid/issue-brief/medicaid-and-children-with-special-health-care-needs/

[4] https://ehp.niehs.nih.gov/wp-content/uploads/122/10/ehp.1307044.alt.pdf

[5] https://theintercept.com/2017/01/14/dow-chemical-wants-farmers-to-keep-using-a-pesticide-linked-to-autism-and-adhd/

[6] https://en.wikipedia.org/wiki/Lead_hydrogen_arsenate

[7] https://en.wikipedia.org/wiki/Dichlorodiphenyltrichloroethane

[8] https://en.wikipedia.org/wiki/Endocrine_disruptor

[9] See Footnote 5 above

[10] http://thelancet.com/journals/laneur/article/PIIS1474-4422(13)70278-3/abstract

[11] https://www.bna.com/trumps-pick-lead-n73014449061/