February 20, 2013

Ky. Child Care Advocates Clueless on Economics

If you were to listen indiscriminately to so-called child advocates in Kentucky, you would think there's a conspiracy to keep funds away from child care for the poor. But like Greece, the reality is quickly setting in that when a government makes promises it can't sustainably keep, ultimately those that were socialized into government dependence are suddenly thrown out into the cold when the funds are no longer available. That's what has happened with the child care program in Kentucky, and there is no way to simply conjure up funds that don't exist.

It's not a matter of whether it's good or bad for the state to help with child care, that's a separate issue, the point is these programs and others like them will find out that there never was a chance for them to be sustained over the long term, which is why we must go back to lower taxes and smaller government so the free market can do the job of taking care of these things, rather than a state that can no longer tax people and businesses, as they can't support the unproductive any longer.

This is why there is a growing and gigantic shortfall in the pension plans of government employees. The same thing has happened. When you give away the farm with no way, over time, to pay for it, all you're left with are broken promises and a disillusioned people who unfortunately and unwisely made the state their healer and provider, rather than placing faith in God and their own productivity.

As to the child care program, starting in April, there will be no new applicants that will be allowed to receive subsidies for child care. In July, new restrictions will be put in place which will lower the income guidelines for recipients of the care.

At that time a family of four must be at or below $22,050 to receive the subsidy. It was formerly at$33,075. Estimates are approximately 8,700 families will lose the government stipend.

About $57.8 million will be saved because of the budget tightening. Even that won't be enough to close the entire amount of the projected shortfall of $86.6 million from the program in the coming fiscal year.

Kentucky, as well as other states, need to quickly face, understand, and respond to the fact that federal funding of many projects are going to dry up. There simply is not more money to go around, and there hasn't been for a long time. That's why we're running debts of trillions of dollars.

Funding for child care has come almost solely from the Federal government, and those funds have been depleted.

The usual parading out of the people that could be hurt by the cuts in an attempt to generate sympathy was made, but that is no longer a reasonable or viable strategy.

This has nothing to do with whether or not people should or should not be helped, it's entirely an economic issue, one where the promises made by the government are not able to be met. This is the cruelty of government promises, liberal agendas, and faulty economics.

For advocates to think this is an advocacy problem rather than an economic one, means there is going to be a lot of pain going forward for those who believe it's business as usual in Washington. Those days are now behind us, and we must look to ourselves and our communities outside of government to find answers.

Those who don't will find themselves continually surprised and caught off guard by the fact that the U.S. government is bankrupt. The only reason money is available is because the Federal Reserve continues to print money, and foreign governments buy it.

The ability for Americans to support the lavish promises and promises by the government are long gone.

1 comment:

  1. This really isn't news, it's you pushing your own agenda with just a dash of fact tossed in the mix. Your title is misleading and most likely purposely so. I clicked on this link thinking i would find an actual news source, especially since you yourself claim to be "news and commentary", but it's mostly commentary. You're no different than the "lamestream media" or any other obviously biased source that vomits subjective information.