Reality of government support, present and future
As the economy deteriorates, many look to government programs for support. Incentives, tax credits, bailouts, and benefits are designed as support systems for individuals, corporations, and local municipalities, to help bridge the gap before recovery takes place.
Even if a recovery does occur, which it very well may not, the success of American individuals and businesses who depend on government programs to survive to that point is dependent on how well these programs perform.
Let’s take a look at a few examples. Kaziah Mraz, 34, has done everything society expects of a responsible citizen. She works full time but hit a rough spot. Mraz applied for food stamps before and after the divorce, but was told she made too much money. The second time, her caseworker encouraged Mraz to apply again in October, when the federal government readjusted its poverty guidelines. Then the New Mexico Human Services Department told her it couldn’t help her and her two children. “The system is fucked. It’s not there to help people who are really trying to help themselves.” Mraz says. “I’m not trying to take advantage of the system; I just want some help while I get through this situation. At this point, if I was 30 pounds skinnier, I would go to Albuquerque and strip.”
Time Magazine reports that others are taking a different approach: shoplifting. According to an annual survey released 
on Tuesday, incidents of shoplifting rose nearly 6% over the past year, representing nearly $115 billion in losses for businesses. One of the more surprising findings: a growing number of new shoplifters are outwardly reputable, middle-class people who are walking off with French cheeses, quality meats, cosmetics, mobile phones, clothing and other goodies that they feel they need to maintain a quality of life they can no longer afford.
It’s not like the government is not trying. Recently, the government began paying out more money on social programs than it takes in. For the first time since the 1930s, personal taxes paid by Americans aren’t enough to cover the payments that the government sends out through transfer programs like Social Security and food stamps.
Other than single mom strippers, and shoplifting yuppies, there are other signs the government stimulus s not as effective as planned. A Boston Globe review of job stimulus numbers shows that the number of saved jobs claimed byt the government is wildly exaggerated. “There were no jobs created. It was just shuffling around of the funds,’’ said 
Susan Kelly, director of property management for Boston Land Co., which reported retaining 26 jobs with $2.7 million in rental subsidies for its affordable housing developments in Waltham. “It’s hard to figure out if you did the paperwork right. We never asked for this.’’
Economists see the same story with the homebuyer credit. “It’s a gimmick,” said Iowa State University economist David Swenson. “It’s really not changing the demand for housing at a time when we have an excess of supply.” The article explains that most economists agree that the extension and expansion will do two things: It will increase housing prices, and it will move future sales into the present, thereby extending the pain.Neither of those things benefit the long-term economy. The logic is similar to programs that put two of the big three automakers in bankruptcy, such as zero percent financing and car loans that lasted longer than cars.
