Essay on The Welfare Fraud Crisis - 1705 Words

Welfare is intended for families or individuals that are in need of assistance with no or little income. For those who do not know, Welfare funds come from hard working individuals that are required to pay taxes. Now we wonder, are the tax payers’ hard earned money going to the right deserving recipients? Welfare fraud is on the rise in this country. Many are taking advantage of the system taking away the help that is meant for people that truly needed help to provide for their families or people that need assistance until they can stand on their own feet. Statistics clearly show that â€Å"785,000 to 1.2 million families are illegally receiving welfare benefits. At the average rate of $11,500 per year, this means taxpayers are being†¦show more content†¦Ã¢â‚¬Å"Lana M. and her husband collected welfare benefits in 2003, claiming they earned less than $24,000. But authorities say Lana M., the former office manager of a job-training center for immigrant welfare recipients, also owned a liquor store and recycling business. Authorities say, she drove a $76,000 luxury car, shopped at Neiman Marcus and Saks Fifth Avenue and had $147,980 stashed in her bedroom dresser† (â€Å"Welfare† 7). This case for instance, how did this couple’s income go undetected by the system? How did their greed get away with thousands of dollars they obviously did not need? Not only did they cheat and scam the welfare system and tax payers, but they took away the assistance from a family or individual that where truly seeking aid. While reading through some articles when researching information on this matter I learned that it is not easy to apply for Welfare Programs. Applicants are required to provide important documentations such as â€Å"Source of income, proof of identity, social security cards, proof of residence cost, copy of mortgage payments, pay stubs and applicants are even required to provide saving and checking accounts informat ion and cash on hand† (â€Å"Tips† 7). With all these information in our government’s hand, fraud should be the last thing on peoples’ mind. Tax payers should rest assured that the money they have worked so extremely hardShow MoreRelatedThe Long Term Nature Of The Crisis Essay1333 Words   |  6 PagesYeva Nersisyan and Randall Wray’s Minskian analysis of the long term nature of the crisis helps us understand many concepts of Akerlof and Shiller’s Phishing for Phools. George Akerlof and Robert Shiller’s analysis uncovers some of Nersisyan and Wray’s concepts as well. 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