Friday, August 29, 2014

No Wonder They Don't Work

The U.K.'s Daily Mail reports being on U.S. federal assistance can pay much better than an entry level job. Hat tip to Lucianne.com for the link.

My first question: Why do we have to read this in a British paper? Shouldn't the U.S. media report this ridiculous state of affairs? The Mail writes:
A third of Americans are now on welfare benefits. (snip) New census data has revealed that around 110 million Americans are receiving government assistance of some kind.

The number includes people receiving 'means-tested' federal benefits and subsidies based on (low) income. Those receiving food stamps, subsidised (Brit. spelling) housing and Temporary Assistance for Needy Families are also included in the total.

Analysts have raised concerns that the programs are encouraging people to stay at home rather than work. They pointed out that when recipients combine several government assistance programs, in many cases they pay better than going to work.

Michael Tanner, from Cato Institute think tank said that in the eight most generous states, the benefits are comparable to a $20 minimum wage. This would exceed the $7.25 minimum wage in most states.
My next question, why are we so darn generous? Giving people more than the bare minimum necessary to keep body and soul together is a foolproof way to destroy them.

Total welfare from all sources should never exceed the take-home from a 40 hour minimum wage paycheck. That is $290 a week minus deductions for Social Security, etc.; a net of around $250/week. At that level the unemployed have plenty of incentive to find and keep a job.