Your Survival Guy

Preparing your investments and family for when disaster strikes.

Disclosure

  • Home
  • Your Survival
    • Special Report: FOOD SHORTAGE: Crazed Hoarding Is Not Preparing
    • Your Survival Guy’s Super States
    • Constitutional Carry
    • EMP Threat
    • Tucker Explains
    • Newport Gas Outage
    • Water
      • Emergency Water Storage
      • Let There Be Water
    • Get Your Gun and Your Training Now
    • Satellite Phones
    • Navy SEAL Survival Kit
  • Your Money
    • Coronavirus Infects Stock Market
    • Looking for a Better America
    • You Invest, They Win
    • Where to Keep Your Cash
    • Paris
    • How to Buy a Boat
    • Dead or Alive? The Future of Long-Term Investing
    • Is Vanguard too Big?
    • Cryptocosm and Life After Google
    • The Last Intelligence Report
    • The Truth Behind the S&P 500
    • RAGE Gauge
    • How Many “Retirees” Will Keep Working?
    • Your Retirement Life
    • You’ll Love This if You’re Dreaming of an Active Retirement Life
  • Weapons
    • Self Defense
    • Every Family Should Own at Least One Shotgun: Here Are Three
  • About Me
    • Your Survival Guy: “Life on Main Street Hasn’t Been This Hard in a While”
    • Preparing for Times Like These
    • My Videos/Pics
    • Music
      • RIP Neil Peart: You Will Always Be Remembered as a “Modern-Day Warrior”
    • Your Survival Guy: Make Your Bed and The Hero Code
  • You
    • Our Cabin on Kodiak, Alaska
    • If You Are in Pain, this May Help. It Helped Me.
    • How to Save for a Grandchild
    • FIRE! Financial Independence, Retire Early
    • Compound Interest
    • Arithmetic of Portfolio Losses
    • Maximum Portfolio Withdrawal Rate
    • An Efficient Frontier
    • Retirement Compounders
    • Counterbalanced Total Returns
  • Survive & Thrive
    • January 2023: Stacking Wood and Compounding Money
    • December 2022: Your Survival Guy Prefers Bombardier’s Global Express 7500
    • November 2022: Arriving in Style at Le Bristol Hotel, Paris
    • October 2022: Sink Your Teeth into These Bond Yields
    • September 2022: Do You Have the 7 Habits of Highly Effective People?
    • August 2022: “Watch This Boat off Our Stern,” My Dad Said “He’s Coming in HOT”
    • July 2022: MONEY TALKS: Your Survival Guy’s Best Service in Paris
    • June 2022: “I’ve Been with Richard Young for Over 30 Years Now”
    • May 2022: Survive “If You Fail to Plan, You Plan to Fail”
    • April 2022: Dream On! Fishing the Double Down in Key West
    • March 2022: Your Survival Guy Hears the Craziest Investing Stories
    • February 2022: Your Survival Guy’s 2022 Super States
    • January 2022: The Least Affordable Housing Market in the U.S.
    • December 2021: Listen Your Survival Guy is not “Mr. Peanut”
    • November 2021: Joe Biden is Weaponizing Your 401(k) Against You
    • October 2021: Time to Get Your Lazy Cash Off the Couch
    • September 2021: What’s Your Survival Guy Investing in Right Now?
    • August 2021: To Where Will You Flee?
    • July 2021: This Bubble’s Popped Baby
    • June 2021: Your Survival Guy’s Summer Job, Inflation & You
    • May 2021: You’re Telling Me Friends Ask You This Question
    • April 2021: Is There One Best Place in America for ‘Liberty Retirees?’
    • March 2021: America’s Growth Corridors
    • February 2021: Troops in D.C. & Your Authoritarian Virtual Panopticon
    • January 2021: Are You Ready for The Great Reset?
    • December 2020: Disaster Prep in Our Newport Bunker and Your Survival
    • November 2020: Election 2020 Edition: Stock Market is Predicting a Trump Win
    • October 2020: You Invest They Win, AGAIN
    • September 2020: Proud to be an American: Pro-Trump Parade Turns Rhode Island Red
    • August 2020: The Clock is Ticking: You Must Protect Your Family
    • July 2020: What Will Her Life Be Like Now?
    • June 2020: Your Survival Guy’s Home (and Money) Protection Plan
    • May 2020: Future Look at Covid-20, or the Next Deadly Virus
    • April 2020: Only Trump Saw the Risk in America’s Relationship with China
    • March 2020: Coronavirus Infects Stock Market
    • February 2020: Escape the City: Live Small, Cheap, and Safe in America
    • January 2020: Is Your Cash Safe? Probably not This Safe
    • December 2019
    • November 2019
    • October 2019
    • September 2019
    • August 2019
    • July 2019
    • June 2019
    • May 2019
    • April 2019
    • March 2019
    • February 2019
    • January 2019
    • December 2018
    • November 2018
    • October 2018
    • September 2018
    • August 2018
    • July 2018
    • June 2018
    • May 2018
    • April 2018
    • March 2018
    • February 2018
    • Welcome

EASY MONEY: Biden’s Dangerous New Entitlement

August 20, 2021 By E.J. Smith - Your Survival Guy

By Africa Studio @ Shutterstock.com

The Biden administration has created a “temporary” new entitlement program giving parents money for having children. Now, in true Democrat fashion, they want to make it permanent. Nick Stehle explains why this entitlement is dangerous in The Wall Street Journal, writing:

Deposits of $948 hit my bank account on July 15 and Aug. 13. The money came from the Internal Revenue Service, but it isn’t a tax refund. I shouldn’t be getting this money at all.

My family is receiving the new Advance Child Tax Credit Payments, passed by Congress and signed into law by President Biden in March. Under this policy, I’m going to make more than $11,000 by the time I file my 2021 taxes. I “earned” this extra cash by having four children between 5 and 13.

Do I need this money? Thankfully, no. I have a good job that puts my family solidly in the middle class. Should I be getting this money? Absolutely not. But will I use the money? Yes. That is why this new entitlement is so dangerous.

The federal government is conditioning families like mine to expect “free” money. When you see that cash in your account, the first thought is how to use it. It becomes a habit to see and spend extra money each month. Like many habits, it is liable to worsen.

This problem extends far beyond my home. The families of nearly 60 million children are now receiving these new monthly payments, though many received a smaller annual tax break that was tied to work under the previous child tax credit. Some are struggling to make ends meet, but only 36% of these new payments are going to families in poverty. The rest of the money is going to families like mine.

I sense ulterior motives at work. The new child tax credit is a blatant attempt to buy votes from middle-class families. Once you come to expect a monthly check, it is more difficult to vote for someone who wants to cut off the cash. The Democrats who passed this policy are using it as a political weapon against the many Republicans who want to return to the previous system, updated in 2017, which kept the credit’s decadeslong connection to work.

It is also a costly undertaking. The price tag is more than $100 billion in 2020 alone and more than $1.6 trillion over the next decade if extended. But the human cost of this policy is worse than the financial one. Since families now get the credit regardless of whether the parents work, they have one less reason to climb the ladder of opportunity.

Forget the damage to the economy. Forget the harm to our culture. The child tax credit will hold people down by keeping them reliant on government handouts. This is the opposite of how a safety net should work.

The IRS will send my next deposit on Sept. 15. I’ll probably save that $948, as I did with the first two payments. But in the back of my mind, I’ll hope that Congress lets this handout expire at the end of the year, instead of making it permanent. America can’t afford such costly free money.

Action Line: Don’t depend on government handouts. You never know when Washington’s politicians will run out of other people’s money. If you haven’t prepared yourself when it happens, it’s going to hurt. Instead, save until it hurts today.

The following two tabs change content below.
  • Bio
  • Latest Posts
My Twitter profileMy Facebook profileMy Instagram profile

E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.
My Twitter profileMy Facebook profileMy Instagram profile

Latest posts by E.J. Smith - Your Survival Guy (see all)

  • CATO: Global Freedom Is in Sharp Decline - January 27, 2023
  • TIME FOR A GONDOLA? Little Cottonwood Canyon Jammed with Traffic - January 27, 2023
  • Biden Administration Destroying Retiree Fiduciary Protections - January 27, 2023
  • 4 Life Changing Words for Your Survival Guy: “You Should Try This” - January 26, 2023
  • Anti-Carbon Crusaders in Davos Talk ESG and OPM - January 25, 2023

If you enjoyed this post, email it to a friend:

  • Email
  • Print
  • Facebook
  • LinkedIn
  • Twitter
  • WhatsApp

Related Posts

Money 101

Trending

  • Invest with Peace of Mind and Comfort
  • LOSING POWER: Your Survival Guy's Nightmare Scenario
  • The Importance of a Balanced Portfolio
  • 4 Life Changing Words for Your Survival Guy: “You Should Try This”
  • Stocks Go Up and Down: Get Paid Along the Way
  • The World Economic Forum's Record of Destruction
  • Don’t Worry, I Won’t Tell Them Our Secret
  • Don't Let Your Lazy Cash Eat all Your Food
  • WATER STORAGE: California's Missed Opportunity
  • Your Survival Guy's 2022 Super States

Must Reads

  • How to Avoid Going Back to Work after Retirement
  • The Masters of the Universe Align Themselves with CHINA Using YOUR Money?
  • Your Survival Guy at Fidelity and Your RMD Compliance
  • Your Job as an Investor Is Not What You Think
  • Your Survival Guy’s Champagne Taste on a Beer Budget
  • BLOCKBUSTER SPEECH: Congressman Defends the Second Amendment
  • Your Survival Guy’s 2022 Super States: #1 New Hampshire
  • Tom Brady Is Proof You Shouldn’t Retire if You Still Love Your Work
  • “Talk to Me, Goose!” Time Flies in Top Gun: Maverick
  • Why You Can’t Afford to Miss the Boat
Only if You’re Serious
Crazed Hoarding Is not Preparing
How to Save Rainwater Effectively
Your Survival Guy in Paris
Your Survival Guy's Fishing Stories
Financial Independence, Retire Early
Money 101
Pandemic Creates Virtual Panopticon
Emergency Water Storage
Find Freedom in America
Second Amendment
How Can You Save Money for Your Grandchild
Great Reset
See Who's Missing the Boat
Richard  Young Reports
How You Can Save Money for Your Grandchild
Why Fidelity is Number One
The Best States for Survival
You Invest, They Win
Escape the City
Why Vanguard is Too Big for YOU
Island Life

Copyright © 2023 | Terms & Conditions

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.