Jobs Are Gone, But This State's Welfare Applicants Just Keep Coming

bitterlyclingin

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Aug 4, 2011
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[The old mills that ubiquitiously dot the countryside are all abandoned and so are the jobs. Just last week one of those long abandoned brass mills collapsed under the weight of its slate roof when the vibrations from a passing train just proved more than the structure could take. But the welfare recipients just keep coming, because America's streets are still paved with gold. Just for them.

Stone is heavy, natch, and when a goodly part of, or most of the weight is located at the top of the structure, thats what usually happens. And when the state bequeaths top heavy benefits, guess whats eventually going to happen to the state? Its hard for Democratic politicians to resist the appeals from its constituents for ever more largesse, after all, Congressman Keith Ellison (D-MN) uttered a mouthful when he said "There's plenty of money out there. The Government just doesn't have its hands on it (yet!)"

Recall the scene from the movie "Ghost Busters" when in the NYC Mayors office Bill Murray advises the city's Mayor to "Think of all the voters"]

"In Connecticut, a mother with two children participating in seven major welfare programs (Temporary Assistance for Needy Families, Medicaid, food stamps, WIC, housing assistance, utility assistance and free commodities) could receive a package of benefits worth $38,761, the fourth highest in the nation. Only Hawaii, Massachusetts and the District of Columbia provided more generous benefits.

When it comes to gauging the value of welfare benefits, it is important to remember that they are not taxed, while wages are. In fact, in some ways, the highest marginal tax rates anywhere are not for millionaires, but for someone leaving welfare and taking a job.

Therefore, a mother with two children in Connecticut would have to earn $21.33 per hour for her family to be better off than they would be on welfare. That's more than the average entry-level salary for a teacher or secretary. In fact, it is more than 107 percent of Connecticut's median salary.

Let's not forget the additional costs that come with going to work, such as child care, transportation and clothing. Even if the final income level remains unchanged, an individual moving from welfare to work will perceive some form of loss: a reduction in leisure as opposed to work.

That's not to say welfare recipients in Connecticut are lazy — they aren't. But they're not stupid, either. Surveys of welfare recipients consistently show their desire for a job. There is also evidence, however, that many are reluctant to accept available employment opportunities. Despite the work requirements included in the 1996 welfare reform, only 24 percent of adult welfare recipients in Connecticut are working in unsubsidized jobs, while roughly 41 percent are involved in the broader definition of work participation, which includes activities such as job search and training.

We shouldn't blame welfare recipients. By not working, they are simply responding rationally to the incentive systems our public policy-makers have established.

Of course, not every welfare recipient meets the study's profile, and many who do don't receive all the benefits listed. (On the other hand, some receive even more.) Still, what is undeniable is that for many recipients — particularly "long-term" dependents — welfare pays substantially more than an entry-level job.

In a Connecticut recipient's short-term cost-benefit analysis, choosing welfare over work makes perfect sense. But it may hurt them over the long term because one of the most important steps toward avoiding or getting out of poverty is a job. In fact, just 2.6 percent of full-time workers are poor, compared with 23.9 percent of adults who do not work.

Even though many anti-poverty activists decry low-wage jobs, starting at a minimum wage job can be a springboard out of poverty. And while it would be nice to raise the wages of entry-level service workers, government has no ability to do so. (Study after study shows that mandated wage increases result in increased unemployment for the lowest skilled workers)."

Hartford Courant
 
The title is stating the obvious. It is common sense the more jobs you lose, the more people you will have on welfare.
 

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