NYC’s Massive Social Welfare Spending Worsens Poverty

ROBERT HORNAK

FORMER EXECUTIVE DIRECTOR OF THE QUEENS REPUBLICAN PARTY

RAHORNAK@GMAIL.COM

Robert Hornak is a veteran political consultant who previously served as deputy director of the Republican assembly leader’s NYC office and as executive director of the Queens Republican Party. He can be reached at rahornak@gmail.com and @roberthornak on X.

An alarming new report was just released that shows the poverty rate at its highest level since this report first began tracking poverty in the city over ten years ago.

The Poverty Tracker report, issued in collaboration between the anti-poverty group Robin Hood and Columbia University, showed that in spite of having the highest taxes in the nation and a massive social welfare system, poverty in NYC has increased year by year and now stands at 26%, double the national average of 13%.

Party thanks to an inflation explosion, 2023 found 2.1 million New Yorkers living in poverty, 100,000 more than in 2022. In 2024, the poverty rate was expected to decline with inflation finally starting to slow. Instead the number of New Yorkers in poverty increased by another 100,000. This includes 450,000 children now living in poverty.

This was happening as NYC saw a net population decrease in 2023 of 78,000 residents. And while 2024 city outmigration figures are not available, NYS had net outmigration of 120,000 residents from 2023-2024. At the same time, NYC was taking in tens of thousands of illegal migrants, concealing the damaging loss of thousands of working class residents.

NYC spends billions every year on social welfare programs. In fact, according to the NYS Comptroller, NYC has the highest per-capita welfare spending in the nation.

In 2023, an incredible $2.4 billion in cash assistance was given to just over 720,000 city dwellers, almost $3,500 per person. That amount increased by half a billion over each of the two previous years, with the number of recipients increasing from 555,000 over the same period. These were the highest numbers since this was first tracked over a decade ago.

In addition, the city spends $14 billion on the Dept. of Social Services, $4.4 billion on the Dept. of Homeless Services, and $3.3 billion on children’s services. The state spends approximately $8 billion on Medicaid, most of which is in NYC, and spends $500 million on WIC food assistance that covers 233,700 city residents. The spending is unfathomable and things continue to get worse, in spite of all the programs and money spent.

And while everyone speculates what the effects of some federal cuts in social spending in this or that program might mean to future outcomes, nobody is asking the one question that really matters – with all these programs, why do more people keep falling into poverty?

Billions of dollars are being spent in NYC, increasing year after year after year. Meanwhile the problem gets worse and worse. What is it the NY is getting so wrong? This problem doesn’t seem to be anywhere near as bad in most other states that don’t have the same massive spending NY has for these programs.

When do we finally stop and admit that the emperor has no clothes.

In comparison, Florida – considered NYC’s sixth borough – has a poverty rate of 12%, below the national average. As of 2021, their social welfare spending was one of the lowest per capita in the country at approximately $1,524 per person. Historically troubled Washington D.C. has a poverty rate of only 14%.

Democrats will surely try to blame this on Republican cuts. But many other Democrat-run states are not having the same problem, and they are not spending the billions that NY is spending.

Consider that since 2014, Democrats have had total control over NYC government, holding the mayoralty and control of the City Council. Since 2013, Democrats have held the governor’s office and majorities in both chambers of the statehouse. And, since 2009, Democrats have held the presidency for all but five years and for approximately half that time they’ve had majorities in Congress.

If Democrats had any grand ideas there was plenty of time for them to pass. The idea that Republican policies in any way are responsible for NYC’s massive failure to even moderately improve the lives of people looking to government for help with the billions it spends is not just a cop out. It’s malfeasance on an unimaginable scale. And confirms the emperor is indeed stark naked.

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