Thursday, February 6, 2014
Why Work When Government Welfare Pays More?
SEE HERE This is the dilemma of solving the poverty problem by giving away free money. It subsidizes not-working and disincentivizes the people receiving the freebies so that not-working becomes more appealing than working. This of course is a recipe for a permanent "down-trodden" (not sure that voluntarily sucking up free bucks qualifies actually as downtrodden) class and tends at the margin to incentivize more folks to leave the workforce. In short it is a socially destructive policy. Of course it does produce a large cadre of grateful voters who like their free perks and are in the bag for the Democrats. After a while that's what it looks like — tax money for votes. It's working but of course long term it has the problem Margaret Thatcher pointed out when she said "Socialism works great until you run out of other people's money."