Tuesday, August 20, 2013

A reason why government assistance should be cut back ...

Townhall article detailing how welfare can be more profitable than working

WSJ article on the same topic

Excerpts from Townhall.com article:

... the Cato Institute will release a new study looking at the state-by-state value of welfare. Nationwide, our study found that the value of benefits for a typical recipient family ranged from a high of $49,175 in Hawaii to a low of $16,984 in Mississippi.
We shouldn’t blame welfare recipients. By not working, they are simply responding rationally to the incentive systems our public policy-makers have established.

It's sad that our policy makers can be so terrible at creating policies.

1 comment:

  1. I was wondering about this. Lets take the working poor as a example. If I am a single mother living alone and are employed at minimum wage or a little above have no benefits to speak of than how does one survive without some form of assistence public or private. Worse yet. What if I am a member of the middle class and my annual pay increases fall far short of the increase in prices say my pay only increases by 1 or 2% a year but prices increase by 3% a year than over time I will slowly but surely become more and more dependent on friends family public charities and the government for more and more of my basic needs. What makes this phenomenon particularly dangerous to the health of capitalism. Is that this dependency occurs over a very long period of time decades. And gradually friends family private charities and government step in to fill in the increasing gap between what percentage of ones basic needs are meet by wages and what portion of ones basic needs are not met by wages .Its sort of like capitalism is creating a socialist state over time. I know this might sound crazy. I even hear that some companies that pay low wages and benefits encourage their employess to apply for public assistence some place on their website. If government provides more and more of ones basic needs than a lot of companies have less incentive to improve the wages and benefits of their employees over time because they know that goverment will make up much of the difference instead..Capitalism cannot survive if 40 or 50 percent of its population depend on friends family private charities and government for most of their basic needs.