Doctor Fate wrote:$69 million in California welfare money drawn out of state
Las Vegas tops the list with $11.8 million spent at casinos or taken from ATMs, but transactions in Hawaii, Miami, Guam and elsewhere also raise questions. Officials say budget cuts hinder investigations.
October 04, 2010|By Jack Dolan, Los Angeles Times
Reporting from Sacramento — More than $69 million in California welfare money, meant to help the needy pay their rent and clothe their children, has been spent or withdrawn outside the state in recent years, including millions in Las Vegas, hundreds of thousands in Hawaii and thousands on cruise ships sailing from Miami.
State-issued aid cards have been used at hotels, shops, restaurants, ATMs and other places in 49 other states, the U.S. Virgin Islands and Guam, according to data obtained by The Times from the California Department of Social Services. Las Vegas drew $11.8 million of the cash benefits, far more than any other destination. The money was accessed from January 2007 through May 2010.
So, let me see... A few questions:
1) How much was issued in total on those cards in the 3 years and four months covered by the period? What is $69M as a proportion
2) How much was taken from ATMs?
3) How much was taken in neighbouring states?
4) Do the rules of the scheme mean that people are not allowed to leave the State of California?
5) Do the rules specify what the money can be spent on, or is there just intention
In other words, how much of the $69M is actual fraud, how much is just not known. And how much time and money do you want to spend to find out?
Now, I don't think anyone said there was
no fraud. Clearly there is (and there is fraud in all walks of life - there are military men who defraud, there are dirty cops, there are men of god who fleece their flocks, there are dodgy lawyers, doctors, politicians, people who pilfer from the tills where they work...
The issue is what should be done about it. It seems one issue in your story is that 'budget cuts hinder their investigations'. Because dealing with fraud costs money, but if budgeters don't look properly at the Cost-Benefit side, they can cut areas that save money.
And we should prosecute fraud of all kinds. But I get the impression that this is a Trojan Horse argument. You and GA and Tom are coming up with 'abuse' (much of which is supposed and anecdotal, rather than statistically derived) which may not actually be real fraud, and leading towards the idea that we should cut welfare to all. The implication being that loads of it is fraud, that all it does is create poverty (because, as we all know, there was zero poverty before welfare came along :roll:), so let's get rid of it.
Ricky made his point crassly, but it is not that different from noting the large amount of fraud by corporations who get military contracts and suggesting that as a result we should stop buying weaponry.
Perhaps what is needed is better definition of what fraud is and is not, a clear set of rules, and some investment in rooting it out and prosecuting it?
Or does that not satisfy the envy of the middle class American* towards the poor?
(*not that we don't have the same tendency in this country, people who assume that their comfortable lot in life is all down to themselves, and who resent having to subsidise the worse off).