Search






Jeff's Amazon.com Wish List

Archive Calendar

November 2024
M T W T F S S
 123
45678910
11121314151617
18192021222324
252627282930  

Archives

“Welfare: A Better Deal than Work”

This, my friends, is what is commonly referred to as “reaching the tipping point.”

Or, if you’re a bored, narcissistic, imperial ideologue who happens to be a wonderful father (rumor has it) and a Good Man who is, Visigothic epithets to the contrary, merely your garden variety liberal Democrat who is doing what he thinks is best for the country — you call it “fundamental transformation,” and your clear intentions are ignored because, well, historic!

Michael Tanner, NRO:

Suppose someone offered you the same amount of money that you currently make at your job on one condition — you don’t work. Might you be tempted? That is exactly the deal that our welfare system offers too many people today.

The federal government currently funds 126 separate anti-poverty programs at an annual cost of $688 billion. Of these, 72 provide cash or other benefits directly to poor families. State, county, and municipal governments often operate additional benefit programs. The combined benefits from those multiple overlapping programs can easily add up to the point where welfare simply pays better than work.

This week, the Cato Institute released a new study calculating the state-by-state value of this typical welfare package for a mother with two children participating in seven common welfare programs — Temporary Assistance for Needy Families (TANF), food stamps (SNAP), Medicaid, housing assistance, WIC, energy assistance (LIHEAP), and free commodities. We found that, in 2013, the value of those benefits varied widely across states, from a low of $16,984 in Mississippi to an astonishing high of $49,175 in Hawaii.

In nine states — Hawaii, Massachusetts, Connecticut, New Jersey, Rhode Island, New York, Vermont, New Hampshire, and Maryland — as well as Washington, D.C., annual benefits were worth more than $35,000 a year. The median value of the welfare package across the 50 states is $28,500.

But that doesn’t tell the whole story. Welfare benefits are not taxed, while wages are, so we calculated how much money a welfare recipient receiving these six benefits would have to earn in pretax income if she took a job and left the welfare rolls. We computed the federal income tax, the state income tax, and the FICA payroll taxes one would have to pay on wage income; we also took into account both federal and state versions of the Earned Income Tax Credit (EITC) as well as child tax credits where available (these helped increase the relative value of work but did not fully offset the taxes due).

We found that, just to break even, a person on welfare would often have to take a job that paid considerably more than the value of the forgone welfare benefits. In Hawaii, for example, a person leaving welfare for work would have to earn more than $60,590 a year to be better off. In fact, welfare currently pays more than a minimum-wage job in 34 states and the District of Columbia. In Hawaii, Massachusetts, Connecticut, New York, New Jersey, Rhode Island, Vermont, and Washington, D.C., welfare pays more than a $20-an-hour job, and in five additional states it yields more than a $15-per-hour job.

Consider this: In ten states and the District of Columbia, welfare pays more than the entry-level salary for a teacher in that state. In 38 states and the District of Columbia, welfare is more generous than the average starting salary for a secretary. And in the three most generous states, welfare pays more than the wages for an entry-level computer programmer. In eight states, welfare recipients receive benefits worth more than the median salary there.This is not even to consider the other costs of going to work. As Casey Mulligan of the University of Chicago recently testified before Congress:

Earning income requires sacrifices, and people evaluate whether the net income earned is enough to justify the sacrifices. When [welfare programs] pay more, the sacrifices that jobs require do not disappear. The commuting hassle is still there, the possibility for injury on the job is still there, and jobs still take time away from family, schooling, hobbies, and sleep. But the reward to working declines, because some of the money earned on the job is now available even when not working.

Likewise, we should consider that, as the Congressional Research Service has pointed out:

Leisure is believed to be a “normal good.” That is, with a rise in income, people will “purchase” more leisure by reducing their work effort. . . . Thus, the increase in [the value of welfare benefits] is expected to cause people to reduce work hours.

[…]

It should be no surprise, then, that, despite the work requirements put in place by the Nineties welfare reform, fewer than 42 percent of recipients are participating in broadly defined “work activities.” In some states, such as Missouri and Massachusetts, less than one out of five welfare recipients are “working.” Moreover, work activity frequently means not a job but only looking for work or participating in a job-training program. In fact, fewer than one-fifth of welfare recipients are working in unsubsidized private-sector jobs.

Of course, not every welfare recipient meets our profile, and many who meet our profile do not receive all the benefits listed. (On the other hand, some receive even more.) Still, what is undeniable is that for many recipients — particularly the “long-term” dependents — welfare pays substantially more than an entry-level job does.

Nor does our study suggest that people on welfare are lazy. Indeed, survey after survey suggests that they would prefer to be working. By not working, welfare recipients are simply responding rationally to the incentive systems our public-policy makers have established for them.

— Or, to put it another way, our federal Leviathan, which builds its power through dependency on government, has “nudged” — via incentives that promote a rational move toward a western European welfare state model, where the wealthy are expected to subsidize those on the dole through redistribution of wealth (almost like a patronage system, only an involuntary one, and with no expectation that those being subsidized are at work on great pieces of literature or scientific discovery or grand works of lasting art, etc)  — the American working class into a rational and reasoned move toward welfare dependency, which they readily accept in exchange for increased leisure.

Of course, the problem with such a system is that it cannot sustain itself, as we’ve seen in countries such as Greece, and various states and localities within our own country that are bankrupt.  And of course, our own government is itself bankrupt — the only thing propping it up being our current controlling position in world currency, and interest rates that are being manipulated in the run-up to what must, by economic law, eventually implode upon its own temporary machinations.

And the GOP answer?  Promote a policy that will lead to 20 million mostly unskilled “pre-citizen” workers to come in and “grow” the economy by way of tax revenues — even knowing, as we all do, that these workers, even were they able to find employment, will subsidize that employment through government aid, as well as vote at a prodigious rate for the very party that keeps incentivizing welfare participation over bourgeois attempts at individual autonomy and private property accumulation in a blatant attempt to weaken and eventually significantly reduce the size of the private sector, which it will then hand over to its cronies in a settled political system of liberal fascism.

If we don’t fight back now we’re doomed.  It really is that simple.

And yes, it may be too late.  But that doesn’t mean that the 40% or more of us left who don’t wish to live in such a society need surrender to that inevitability.

Or does it?

 

9 Replies to ““Welfare: A Better Deal than Work””

  1. sdferr says:

    It’s always been a peculiar better which swiftly results in a suffering gravitational worse. But then, human stupidity being what we is [the animal that both wants to eat its cake and to have it enduring throughout and thereafter] it’s just what we do.

    Even stupider mere sandy matter, opinionless, even, suffering tipping point cascades downhill under the influence of gravity doesn’t go so far as to notice its consequential suffering, making for less strife in the existence of mere stupid opinionless sandy matter.

    People, stupid as the are, while keeping a firm hold on their eating-and-having tendencies get riled up and blame something or someone else for their troubles; so riled up in fact, they may even march right back up the hill to try it all over again.

  2. cranky-d says:

    We may not need to surrender, but it’s quite possible we will be ground into dogmeat if we don’t surrender.

    I think that the number of people who are willing to say “enough” at the same time is critical. Too few and they will be disappeared by some means or other.

  3. Pablo says:

    I think that the number of people who are willing to say “enough” at the same time is critical.

    The saying of “enough” won’t necessarily be verbal or coordinated. The math will make reality of it.

    Guillory said it is his “sincere hope” that he and others can help people reach the conclusion before economic realities force them to the realization. When a government is spending three dollars for every two it takes in, he said, eventually the grocery store will say “no thank you” to food stamps, Medicare cards won’t work, and the welfare checks won’t cash.

  4. Curmudgeon says:

    At what point will the Obamunist Ohflation kick in? Just as the Great Society ushered in stagflation in the 1970’s, I am seeing parallels. Think of Bush The Younger as Nixon / Ford without the scandals.

  5. DarthLevin says:

    When enough people start using Bitcoin (or similar currency), the steaming excrement will impact the rotary cooling device.

    Money is just a way of printing trustworthiness.

  6. sdferr says:

    * ‘Choosing’ despotism.

  7. Squid says:

    At what point will the Obamunist Ohflation kick in?

    About 48 hours after the Republicans take the White House.

  8. Curmudgeon says:

    About 48 hours after the Republicans take the White House.

    While I no doubt expect the Soroses of the world to try this, it didn’t stop Uncle Ron.

  9. SDN says:

    “When enough people start using Bitcoin (or similar currency), the steaming excrement will impact the rotary cooling device.”

    Darth, there have already been a few court cases where judges have ruled that Bitcoins are no different than official currency for the purposes of regulation and taxation: IOW, the government is getting yours no matter what denomination is involved. The only cure is to be physically out of reach, and drones fly anywhere.

Comments are closed.