Welfare Pays Better than Working

Current Event

Cole Baker

  March 12, 2014

              

     In an article written by Michael D Tanner for the New York Post, he discloses that welfare pays better than work. (published Aug. 19, 2013 - reprinted March 6, 2014)  

     “The federal government funds 126 separate programs targeted towards low-income people, 72 of which provide either cash or in-kind benefits to individuals. State and local governments operate more welfare programs. Of course, no individual or family gets benefits from all 72 programs, but many do get aid from a number of them at any point in time.”

      He points out that the Cato institute evaluated the state-by-state value of welfare benefits for a mother with two children. Here are the findings:  In New York a family who receives Temporary Assistance for Needy Families, Medicaid, food stamps, WIC, public housing, utility assistance and free commodities (i.e. milk and cheese) would be receiving $38,004 in benefits  -  all of which is tax free. Furthermore, it would be necessary for someone in New York to be making more than $21 per hour to match that amount  -  more than the entry level salary for a teacher.       

     The 52 page study, titled “The Work Versus Welfare Trade Off,” tells us that the “full package of welfare benefits often exceeds take-home pay in part because benefits are tax-free”.

      Numerous articles examine this problem further:

www.cato,org/publications//white.../work-versus-welfare-tra.

news.msn.com/govt-aid-pays-more-than-a-minimum wage-job-in-35 -states

nypost.com/2013/...when-welfare-pays-better than-work..

www.forbes.com...on-labor-day...

www.foxnews.com/ .../study.in.most.states.welfare.pays.more

www.businessinsider.com/does-welfare-really-pay-better

www.watchdog.com.in many-states-welfare-pays-more-than-an-honest-days-work

“...if Congress and state legislatures are serous about reducing welfare dependence and rewarding work, they should consider strengthening welfare-to-work requirements, removing exemptions and narrowing the definition of work. This could include reducing benefit levels and tightening eligibility requirements.” Michael Tanner, Cato Institute “The Work Versus Welfare Trade Off”