Economist Highlights $927 Billion in US Welfare Spending Annually Amidst Persistent Homelessness and Hunger

Morgantown, WV – Chris Freiman, a Professor of General Business at West Virginia University, recently sparked debate on social media by questioning the direction of public outrage regarding social issues. Freiman, known for his work in democratic theory and distributive justice, suggested that criticism should target the substantial annual spending by the U.S. government rather than the business decisions of entrepreneurs, especially given the ongoing challenges of homelessness and hunger.

"This is such a tiresome take—the US government spends trillions of dollars every year while people go homeless and hungry. It seems like the outrage should be directed at that rather than the business decisions of entrepreneurs," Freiman stated in the tweet.

Federal and state governments allocate significant funds to social welfare programs. In 2011, excluding Social Security and Medicare, Congress directed nearly $717 billion in federal funds, supplemented by $210 billion in state funds, towards means-tested welfare initiatives, totaling $927 billion. This comprehensive spending covers areas such as food assistance (SNAP), healthcare (Medicaid), housing subsidies, and education. When including Social Security and Medicare, total expenditures reached $1.3 trillion in 2013.

Despite these vast expenditures, issues like hunger and homelessness persist, prompting questions about the effectiveness and allocation of public funds. Recent reports from the U.S. Government Accountability Office (GAO) in 2023 indicate that the COVID-19 pandemic, inflation, and rising housing costs have intensified concerns about these social challenges. Federal programs, including the Department of Housing and Urban Development's Continuum of Care and Emergency Solutions Grants, along with the Department of Agriculture's SNAP and The Emergency Food Assistance Program (TEFAP), are designed to provide critical assistance.

The ongoing public discourse often centers on whether government intervention or private sector innovation holds the key to alleviating these societal problems. Freiman's perspective aligns with a view that scrutinizes government efficiency and policy outcomes. Research consistently shows that food insecurity is notably higher among homeless populations compared to the general public, with factors such as health conditions, interactions with the criminal justice system, and access to medical services playing significant roles in individuals' ability to secure basic necessities.