Once Again Workers & Home Owners Get Screwed (New York, York: real estate, mortgage)

[rusty78]

Well once again...the workers and home owners in New York get screwed......as the long term unemployed - welfare - gets a 10% raise......what a great state to live in......or perhaps better said...what a great state to get the hell out of......it appears that if you work for a living....pay your taxes...follow the american dream and buy a home...you just get screwed over and over again...

In this economy...if you are lucky enough to have a job...everyone is tightening their belts to survive...so what do they do...increase taxes...eliminate the home owners rebate check - Star Program - and insult to injury...increase the welfare payments...the same thing happened in 1975...when NYC laid off workers and increased the welfare checks...no wonder why everyone wants to get the hell out of dodge...

What do you think????

[Scott99999]

That's a very broad set of statements, but of course it majorly sucks to see any tax relief go away. I'm not sure the problem is welfare as much as it is this disastorous administration, which has led to an almost total collapse of the economy.
http://www.eriposte.com/economy/indi...it_graphic.gif

I'm not sure if someone has the stats, but I read online that the maximum monthly benefit for welfare is $424 for a family of three in New Jersey? That's really not a lot of money for anyone (much less three people) to live on, and the max cap on earnings is around $7000. In New York, the welfare benefit amount hasn't changed since 1989. Personally, I think any able-bodied person has a responsibility to work , but "ouch."

Frankly, I think some of the people who got "screwed" in the past few years were potential first-time home buyers. People are saying this is a buyer's market - but real estate prices have FAR outpaced salaries and many people in the last generation of home buyers made a killing compared to what new buyers face today.

http://static.seekingalpha.com/uploa...laf_chart1.gif

For many years, "real estate" was a no-fail prospect - people could see their $300k house they bought in 2000 go for $600k in 5-7 years. Now, if you buy a $600k house with $10-15k taxes, not only are you facing the prospect of losing value, but it's much harder to get the loan in the first place. And if you do secure the house, your mortgage is $4k+ a month. If that's a comfortable 25% of your gross income, then you've got to gross $16k per month or $192k per year. Heck, there are places locally here in New York where an acre of land is $500k.

Considering many decent suburban houses in northern NJ go for $500k-$600k, it's obvious that it takes money to make money, and that many typical "middle class" people are shut out of even playing. Many people have also seen huge increases in equity.

The economy sucks right now, and I don't think anyone's getting a fair shake. And I'm sure there are a number of people who are going to need those social safety nets (unemployment, welfare, social security, medicare, etc...) as their bottom falls out.

[Scott99999]

Also, just found this. Basically, the majority of welfare recipients are children, and the welfare grant has been unchanged since 1989 (this says 1990), while inflation has grown 65%.

Nearly 284,000 New York children receive Welfare benefits, which represents 57 percent of total recipients.

“Since 1990, the world has changed dramatically, but the basic welfare grant has stayed the same, and the challenges facing the neediest among us have only increased,” said Governor Paterson. “Though our resources are limited, this is a much needed investment to help assist vulnerable New Yorkers who are suffering as a result of the current economic crisis, far too many of whom are children.”

The basic monthly grant has remained at $291 for a family of three ($3,492 per year) since 1990. Since that time, inflation has increased by more than 65 percent.

For the average size public assistance household comprised of a mother and two children, the maximum monthly basic allowance when the increase is fully implemented in 2012 will be $387 ($4,644 annually), a monthly increase of $96 or 33 percent from the current maximum allowance of $291.

[rusty78]

Originally Posted by Scott99999

Also, just found this. Basically, the majority of welfare recipients are children, and the welfare grant has been unchanged since 1989 (this says 1990), while inflation has grown 65%.

Yes...the vast majority of welfare receipts are children...but that is because the system encourages children to have children so that when they become 18 years of age......they can get their own place and continue producing more children to have children......as a point of interest...we now have fourth and fifth generation welfare receipents......who feel they are entitled to "it" and have no intention what so ever of ever looking for a job......

In 1975 when the city had layoffs...the welfare budget and related welfare expenses accounted for more than 60% of the city budget......I would really love to know what % it is today......but yes...they definately deserve another 10% to spend...