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Study: When welfare pays better than work


Educating the Ignorant
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Dec 19, 2008
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here’s an offer for you: $38,004 per year, tax free.
No work required.
Apply at your local welfare office.

The federal government funds 126 separate programs targeted towards low-income people, 72 of which provide either cash or in-kind benefits to individuals.

...remember... Welfare benefits aren’t taxed, while wages are.

So someone in new york would have to earn more than $21 per hour to be better off than they would be on welfare.that’s more than the average statewide entry-level salary for a teacher. Plus, going to work means added costs such as paying for child care, transportation and clothing.not to mention that, even if it’s not a money-loser, a person moving from welfare to work will see some form of loss — namely, less time for leisure as opposed to work.

Is it any wonder, then, that, despite the work requirements included in the 1996 welfare reform, only 27.6 percent of adult welfare recipients in new york are working in unsubsidized jobs?

...a person leaving welfare for work would have to earn $21.33 per hour to be better off. Nationwide, our study found that the wage-equivalent value of benefits for a mother and two children ranged from a high of $60,590 in hawaii to a low of $11,150 in idaho. In 33 states and the district of columbia, welfare pays more than an $8-an-hour job. In 12 states and dc, the welfare package is more generous than a $15-an-hour job.

Or as noted in the title of another news story...

Welfare Pays More Than Twice Minimum Wage In A Dozen States
We've known for years that Welfare was backwards, and paid too much. The whole system is a disgrace. Nothing will be done. You'd think the Big Government people would at least expect a quality government, but that's not the case.
Here's a link to a study performed at the Cato Institute (2013) "An Analysis of the Total Level of Welfare Benefits by State".
Quite an eye opener. I don't recommend reading the study during or after a meal for it has the potential to cause indigestion.

The Work versus Welfare Trade-Off: 2013 | Cato Institute

This page will allow you to access the pdf .
While on the one hand welfare can be a disincentive to work, the other hand let's not forget that
Wallstreet welfare also has a disincentive to create stable financial growth.
(CDO's, toxic assets, shell corporations, off-shore tax havens, etc)
The Fed is printing $85 billion A MONTH -- tax free.
In other words, while workers may be collecting money by not working, bankers are gambling
instead of creating a sound investment system. Both are at fault.
If you know how to play the system you don't need to work so we need to change the system. There should be a ceiling on how many gov dollars you can get so you can't reach into so many pots at once.
Yeah, this conservative meme has been around for years. Business Insider has, how should we say, a corrective.

Does Welfare Really Pay Better Than Work? - Business Insider

It started off as a valid-seeming article. Until...

That said, poverty traps are real. This is the phenomenon of people losing benefits as they earn more income of their own.

That's not a phenomenon. Temporary welfare is supposed to be temporary, and one of the great things about earning more money is reduced dependence on the external for help. This shouldn't be thought of as a trap or a phenomenon.

This is the problem that conservatives and libertarians refuse to grapple with: If you're unwilling to support policies that promote macroeconomic stability, such as counter-cyclical fiscal and monetary policies, you're only making a more generous welfare state more morally necessary.

I take major issue with this particular comment. While libertarians might oppose some of the emergency measures that have been deployed since the **** hit the fan, they also tended to oppose all the policies that created the macroeconomic instability in the first place. Would a libertarian have supported Gramm-Leach-Bliley? Would a libertarian have advocated replacing the stock bust with the housing bubble? Would a libertarian have appointed Larry Summers to Treasury Secretary, chief economic advisor, or perhaps chairman of the Federal Reserve? Finally, the United States Federal Government need not be the deliverer of all things "morally necessary."

That's because conservatives and libertarians don't really care about the poverty trap, much as they may talk about it — they just hate spending money on the poor.

Ending on a hyper-biased partisan note like this destroys the credibility of the whole article. In response to this sophomoric little jab, please refer to my signature line.
Or as noted in the title of another news story...

Welfare Pays More Than Twice Minimum Wage In A Dozen States

That's proof that wages for working people are too low. The average income for a family of four in this state is $46,000. If anyone paid close attention and had one eye and half sense they could see what the rich are doing to America. In the 40's and 50's a corporate executive made about 12-15 times what a plumber or electrician earned. By the 60's-70's 100 times as much. In 2010 an average CEO made 450 times what an ordinary American worker earned. All this mess began after Reagan started his campaign against organized labor:

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the rich get richer, and the poor get poorer... Oh my, what to do?

I got it. Let cut welfare and/so we can lower wages.
the rich get richer, and the poor get poorer... Oh my, what to do?

I got it. Let cut welfare and/so we can lower wages.

Like I've said....create a Lord/Serf society in America. Anyone who doesn't see what has happened to America in the last thirty years is blind:

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