It’s a Wel-fraud Wonderland, Industrial-Scale Theft in Minnesota & GDP Boom vs. Media Gloom Week In Review

1. Welfare System Fraud and Structural Issues

• Based on an op-ed by Phil Gramm and John Early in The Wall Street Journal titled “The Biggest Fraud in Welfare”.
• Key points:
  • U.S. welfare spending has skyrocketed 765% since the mid-1970s, now totaling $1.4 trillion annually.
  • If distributed evenly among the 19.8 million families classified as poor, each would receive $71,000 per year.
  • The government fails to count non-cash benefits (Medicaid, housing subsidies, food stamps) as income, creating a distorted picture of poverty.
  • Example: A single parent earning $11,000 annually can receive benefits worth $53,128, bringing total resources to $64,128, well above the poverty threshold.
  • Criticism of the system: It traps people in dependency instead of promoting self-sufficiency, contrasting with Trump-era welfare reform that moved 7 million people off food stamps into the workforce.

2. Massive Fraud in Minnesota’s Medicaid and Welfare Programs

• Federal prosecutors allege up to $9 billion in fraud since 2018, possibly 50% of the $18 billion spent on 14 programs.
• Fraud described as “industrial scale”, involving fake companies and individuals exploiting housing and autism assistance programs.
• Some funds allegedly funneled to Al Shabab, a Somali terrorist organization.
• Criticism of Minnesota’s Democratic leadership for lack of oversight and alleged vote-buying incentives.
• Prediction: Similar fraud likely exists in California, New York, and Illinois.
• Media accused of downplaying the scandal; local CBS reports highlighted the severity.

3. Strong U.S. Economic Performance Under Trump

• Latest GDP report shows 4.3% growth in Q3, the strongest in two years, beating expectations of 3.2%.
• Growth driven by consumer spending, healthcare, tech, and AI-related investments.
• Inflation reportedly down to 1.6%, signaling economic stability.
• Commentary contrasts media narratives predicting economic collapse with reality of strong holiday spending and trade policy success.
• Trump’s supply-side policies (tax cuts, deregulation) and trade strategies credited for economic boom.

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