Posts Tagged ‘work’
The sad truth in the USA, as we explained in great detail here, incentives to ‘work’ are increasingly non-existent. Thanks to a never-ending stream of benefits from the great and powerful Oz, as CNBC’s Rick Santelli notes, Disability payments (of which there are 14 million people covered in the US - none of which count towards the unemployment rate) pay around $13,000 per year (versus $15,000 for minimum wage work). However, Santelli exclaims, the people on disability get healthcare; and this program costs the US $300 billion per year. Is it any wonder that only 1% of those who were on disability in Q1 2011 have left? Santelli comments, “I’m not saying there aren’t people that are on disability that shouldn’t be, but much of it is illnesses like back pain… it’s a judgment call,” adding that, “without incentives, large issues go …totally unfixed.”
Always ask The Magic Question: What gets rewarded?
Food stamps, welfare, Medicaid and other tax and transfer systems can sometimes penalize people for earning that extra dollar of income
Economists and many policymakers generally agree that our tax and transfer systems should promote opportunity, work, saving, and education rather than consumption. The problem is these programs often penalize people for earning that extra dollar of income. Rather than promoting work and savings, these implicit taxes punish such otherwise positive behavior.
These penalties occur in TANF (formerly welfare), SNAP (formerly Food Stamps), Medicaid, the new health exchange subsidy, Pell grants, student loans, and unemployment compensation. The tax code also is loaded with disincentives to work, save, and study.
Read more by Gene Steuerle at csmonitor.com
Part of his series on Making Sen$e of financial news, Paul Solman has been showcasing the future of technology from a recent conference run by a California think tank — things such as 3-D printing of prosthetic legs and iPhone heart tests. But the conference also resurfaced an age-old question about the future of human workers.
For more coverage, visit the PBS NewsHour website: http://to.pbs.org/KmnmYD
The U.S. welfare system sure creates some crazy disincentives to working your way up the ladder. Benefits stacked upon benefits can mean it is financially better, at least in the short term, to stay at a lower-paying jobs rather than taking a higher paying job and losing those benefits. This is called the “welfare cliff.”
Let’s take the example of a single mom with two kids, 1 and 4. She has a $29,000 a year job, putting the kids in daycare during the day while she works.
Read more by James Pethokoukis at American Enterprise Institute
I asked the same question in an update to Erika’s post on Barack Obama’s unilateral move to accommodate young illegal immigrants by refusing to deport them and issue them temporary work permits instead. With potentially as many as 800,000 new workers flooding into the system, what happens to the millions of Americans who can’t find work now? The Washington Post wonders the same thing, and more:
Read more by Ed Morrissey at HotAir.com, June 16, 2012
–SNIP– Or, as the White House puts it on its website promoting an increase in the minimum wage, “Today, the real value of the minimum wage has fallen by nearly one-third since its peak in 1968.”
Why were wages so high until 1968? Because that’s when Teddy Kennedy’s 1965 Immigration Act kicked in, bringing in about a million immigrants a year, almost 90 percent of them unskilled workers from the Third World.
Our immigration policies massively redistribute wealth from the poorest Americans to the richest. It’s a basic law of economics that when the supply goes up, the price goes down. More workers means the price of their labor plummets.
–SNIP– Democrats show how much they love the poor by importing a million more of them to America each year. But then they prevent the last batch of poor immigrants from getting decent, well-paying jobs by bringing in another million poor people the next year.
You want a higher minimum wage? Turn off the spigot of low-wage workers pouring in to the U.S. and it will rise on its own through the iron law of supply and demand.
In response to the Democrats’ minimum wage proposal, Republicans should introduce a bill ending both legal and illegal immigration until the minimum wage rises naturally to $14 an hour.
Read more by Ann Coulter at AnnCoulter.com
The Democrats are right, there are two Americas.
The America that works, and the America that doesn’t. The America that contributes, and the America that doesn’t.
It’s not the haves and the have nots, it’s the dos and the don’ts. Some people do their duty as Americans, to obey the law and support themselves and contribute to society, and others don’t.
That’s the divide in America.
Read more by Bob Lonsberry at ToThePointNews.com
“I am for doing good to the poor, but I differ in opinion of the means. I think the best way of doing good to the poor, is not making them easy in poverty, but leading or driving them out of it.” –Benjamin Franklin
The War on Poverty “has failed,” Rep. Paul Ryan said Thursday night, arguing that the U.S. needs to reduce federal spending and rethink its entire strategy toward poverty.
In doing so, the House Budget Committee chairman issued a challenge to the Obama administration, which has pledged to make a strong push to combat income inequality and raise the minimum wage in 2014.
In a conversation with “NBC Nightly News” anchor Brian Williams at the Newseum in Washington, Ryan decried “trillions of dollars” of spending on federal programs while 46.5 million Americans remain under the poverty line. “We can do better than this,” he said.
“Too many people don’t know what the American idea is anymore,” the Wisconsin Republican said, calling for a more streamlined federal government and a family-and-community-oriented approach to fighting poverty.
Read more By JONATHAN TOPAZ at Politico.com