Oops! U.S. “Overpaid” $14 Billion In Jobless Benefits

Seraphic Secret is in the movie business.

Emphasis on the word business.

Here’s how it works. Yours truly writes and produces a movie. If it makes a profit, it’s a success. Those involved prosper. If the film loses money, heads roll. Either way, there are consequences.

Business measures itself through profit and loss.

But the federal Government is a closed loop of interconnected bureaucracies that recognize no measure of success beyond self-perpetuation.

The federal government has made a shambles of the national debt. Medicare and Social Security will be bankrupt in a few short years.

According to Bret Stephens in today’s WSJ, as of 2010, 48.5% of Americans live in a household that receives some form of government assistance. That’s up from 44.4% in 2008. Even worse, as of 2009 49.5% of Americans pay no federal income taxes. That’s up from 34.1% when George Bush was President.

The takers will soon outweigh the suppliers.

We are becoming a welfare state on the model of Greece, Spain, France, England, Portugal, Ireland.

How’s that working out?

And now Obamacare is about to cram 315 million Americans into a Rube Goldberg device where thousands of government bureaucrats will process millions of forms that will directly affect your every breath. Under Obamacare, corruption, graft and inefficieny are guaranteed unlike any we have ever seen or imagined.

For an example of your government dollars at work—yes, it’s your money, not the government’s—just take a look at this example of fiscal malfeasance which we guarantee is only the tip of the iceberg.

Though the Democrats can look on the bright side: they have guaranteed themselves a loyal voting bloc.

Via Judicial Watch:

Following various reports of jailed convicts and illegal immigrants receiving unemployment checks from U.S. taxpayers, the Obama Administration is admitting that in fiscal year 2011 the government “overpaid” around $14 billion in benefits.

That’s a chunk of change for a nation suffering through a painful debt crisis that’s topped $15 trillion. Like most bloated government programs, the Department of Labor’s (DOL) unemployment benefits— paid by state treasuries and the federal government—is rife with fraud and corruption. Various news reports have speculated about this for some time, but now we have the actual DOL figures to prove it.

It turns out that in one year alone, the federal government and states overpaid about $14 billion in unemployment benefits, according to a DOL report featuring Unemployment Insurance Improper Payments. The eight-page document also includes “strategies to get the rate down.” Evidently the DOL has “an aggressive strategic plan to work with states to control unemployment payments.” This includes “a number of robust strategies,” according to the report.

The bottom line is that the damage has been done, even though—get this—last year’s $14 billion in fraudulent payments was actually an 11% decrease compared to the previous year, according the DOL. That’s why the agency refers to the $14 bill as an improvement though American taxpayers may view it somewhat differently.

Corruption has plagued the nation’s out-of-control jobless benefits program for some time and the problem has only gotten worse under the Obama Administration. As far back as 2010, there were reports of unemployment checks going out to illegal immigrants in at least one state as well as other unqualified legal residents and citizens.

Earlier this year a mainstream newspaper reported the unbelievable story of a convicted murderer who for years collected unemployment benefits from jail. In all, the felon, a gangbanger, raked in more than $30,000 in unemployment benefits from 2008 to 2010 while incarcerated in California. When his contacts cashed the $1,600 monthly checks they would deposit a portion into his jail account and he would share some of the money with his fellow jailed gang members.

Of interesting note is that California’s veteran Democratic congresswoman, Nancy Pelosi, pushed hard as Speaker of the House to pass a controversial jobless benefits extension by asserting that it would somehow help create jobs. That’s right; Pelosi actually said that unemployment checks keep the economy churning, which in turn, “creates jobs faster than almost any other initiative you can name.”

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4 Comments

  1. Bill Brandt
    Posted July 10, 2012 at 12:39 pm | Permalink

    The funniest thing is that they are going to try and get their money back. Detached from reality aren’t they?

    Like or Dislike: Thumb up 1 Thumb down 0

    • Robert J. Avrech
      Posted July 10, 2012 at 12:43 pm | Permalink

      Govt: Excuse me, sir, we’d like our $13,000.000 refunded.

      Jailed Killer: What’sre you gonna do, put me in jail?

      Like or Dislike: Thumb up 1 Thumb down 0

  2. Johnny
    Posted July 10, 2012 at 10:40 am | Permalink

    This is good though according to Nancy Pelosi since those overpaid benefits went right back into the economy so we should all quit our complaining and thank the lowly clerks and bureaucrats for their patriotism.

    Stuff like this gets my blood boiling.  If this happened in a private insurance company or pension plan there would be heads rolling and some accountability. But you will never have any individual fired or sued for what happened.

    When the Ag Dept was sued in the Pigford case and the government settled for billions, did anyone come up with any names  of those responsible for the supposed discrimination? Such discrimination on such a wide scale would have to leave numerous trails and evidence but none of the stories (by reporters that just want to get the truth out) mentioned any names. We’re just supposed to believe the discrimination just happened as if no human beings were responsible.

    If Republicans can’t change things like this in D.C. (like they haven’t changed the narrative on the budget where a decrease in projected automatic increases are called cuts) they deserve to have the wrath of the tea party descend on them just like Democrats. But I fear this will be shrugged off by everyone as ‘that’s Washington’,

    Like or Dislike: Thumb up 2 Thumb down 0

    • Robert J. Avrech
      Posted July 10, 2012 at 12:36 pm | Permalink

      Johnny:

      This story is just a foretaste of what Obamacare is going to look like. Centralized health care is an invitation to rising costs and mass corruption.

      Like or Dislike: Thumb up 1 Thumb down 0

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