Senator Phil Gramm, How to Eliminate Two-Thirds of The National Deficit in One Year

 

Episode Description

"How can someone receive nearly $77,000 in government benefits and still be officially counted as poor?" That’s the provocative question at the heart of this eye-opening episode of Kent Hance, The Best Storyteller in Texas. Kent welcomes legendary former Senator Phil Gramm, author of The Myth of American Inequality, for a candid, no-holds-barred conversation that will challenge everything you thought you knew about welfare, poverty, and the American Dream. 

Dive into the shocking realities behind federal welfare programs, where benefits like food stamps, Medicaid, housing subsidies, and refundable tax credits—totaling up to $76,908 per recipient—are not counted as income by the Census Bureau. Discover how this accounting “blind spot” fuels runaway spending, distorts poverty statistics, and creates perverse incentives that make it harder for hardworking families to get ahead. 

Key Moments & Themes

• 💡 The Biggest Fraud in Welfare: Senator Gramm exposes how the real scandal isn’t just isolated fraud in places like Minnesota, but a nationwide system that fails to count government benefits as income, keeping millions “officially” poor while spending $1.4 trillion annually.

 

• 📚 The Myth of American Inequality: Insights from Gramm’s acclaimed book reveal how flawed measurements mask upward mobility and the true impact of welfare spending.

 

• 🔥 Memorable Quotes:
  • “If we simply gave the amount of money to poor people that it would take to raise their income level, we could reduce the deficit by two-thirds in one year.”
  • “When we started the war on poverty in 1965, 68% of able-bodied, prime work-age persons in the bottom 20% worked. Today it’s 36%. Why do you think that is?”
  • “The greatest fraud in welfare is in the federal government in Washington, D.C., when they give people benefits and don’t count them as income.”

 

• 🏆 The American Dream: Hear inspiring stories of upward mobility, including how 62% of children from the lowest income families rise to higher brackets in a single generation.

 

• ⚡ Urgency for Reform: Gramm calls for immediate action—urging Congress and the public to demand transparency, accountability, and real change in how welfare is measured and delivered.

Guest Insights

Senator Phil Gramm brings decades of experience, academic rigor, and personal stories to the table, making complex economics both accessible and riveting. His challenge to policymakers and citizens alike: “If we made welfare reform the number one issue in the country, it would be a huge political issue.” 

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Call to Action

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