Friday, August 23, 2013

Wealth redistribution

Incomes Have Dropped Twice as Much During the 'Recovery' as During the Recession

New York Welfare Recipients Now Earn More Than Teachers
by Kristin Tate

A new study from the CATO found that welfare recipients are able to earn more money than full time teachers.

The statistics are unsettling.
A mother of two living in New York is now able to collect $38,004 in benefits. That is more than the salary of a schoolteacher in the same state.

Good grief. Where is the incentive to work when you can make more sitting at home?

The study was done by the CATO Institute, a libertarian group committed to free markets.

The study says in many states welfare pays better than work. Topping the list of wage-equivalent benefits for a mother and two children was Hawaii at $60,590. Idaho came in last with $11,150.

The study found that 33 states and the District of Columbia offer welfare benefits that pay recipients more than an $8-an-hour job would. Twelve states and the District of Columbia offer welfare packages that pay better than a $15-an-hour job does.

“There is no evidence that people on welfare are lazy,” writes CATO senior fellow Michael Tanner. “But they’re also not stupid. If you pay them more not to work than they can earn by working, many will choose not to work.”

$15 trillion has been spent on welfare handouts since Lyndon B Johnson was in office — that amount almost matches our current national debt.

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