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Busting some myths about public assistance

The good folks at Think Progress published a story yesterday entitled “Your assumptions about welfare recipients are wrong.” It’s a myth-buster worth checking out as we contemplate the realities that confront so many of our fellow Americans — especially during the holiday season.

“The stereotype of the low-income people enrolled in government programs is that they spend the money on frivolities and are unwise with their budgets. But the data proves otherwise. Families who receive public benefits such as housing assistance, welfare cash assistance, food stamps, Medicaid, and Social Security Income (SSI) for the disabled or low-income elderly have much smaller spending budgets than those who don’t receive benefits and spend a bigger portion on the basics such as food, housing, and transportation, according to an analysis by the Bureau of Labor Statistics.

On average, families who are enrolled in these public programs spend less than half of what families who aren’t enrolled spend. They also put a bigger percentage of that money toward food, housing, and transportation, devoting 77 percent of their budgets to these necessities compared to about 65 percent for other families. Meanwhile, they spend less, on average, on some things thought to be luxuries like eating out and entertainment. A family that doesn’t get public benefits spends 4.5 percent of its budget on ‘food away from home,’ while a two-parent family who gets benefits spends 4 percent of its budget on eating out and a single parent spends 3.6 percent. ‘Food away from home spending was higher in both dollar amount and percent of total spending among families not receiving assistance,’ the report notes. Families who don’t need assistance also spend more on entertainment in both dollar and percentage terms and devote more of their budgets to ‘other’ expenses.

Read the rest of the story by clicking here.

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