Work or Welfare: What Pays More?

[kytwell 179]

http://blogs.wsj.com/economics/2013/08/19/work-or-welfare-what-pays-more/?mod=WSJ_hpp_MIDDLENexttoWhatsNewsThird

Hawaii offers the most generous welfare benefits package in the U.S., but a cluster of New England and Mid-Atlantic states aren’t far behind.

That’s according to a report out Monday, “The Work Versus Welfare Trade-Off: 2013 An Analysis of the Total Level of Welfare Benefits by State,” from the libertarian Cato Institute in Washington.

The report, by Michael Tanner andCharles Hughes, is a follow-up to Cato’s 1995 study of the subject, which found that packages of welfare benefits for a typical recipient in the 50 states and the District of Columbia not only was well above the poverty level, but also more than a recipient’s annual wages from an entry-level job.

That hasn’t changed in the years since the initial report, said Mr. Tanner, a senior fellow at Cato. Instead, the range has become more pronounced, as states that already offered substantial welfare benefits increased their packages while states with lower benefits decreasing their offerings.

To be sure, not all of those who rely on government programs take part in every benefit to which they are entitled, and the most generous benefits are in states that have the highest costs of living.

The state-by-state estimates are based on a hypothetical family participating in about seven of the 126 federal anti-poverty programs: Temporary Assistance for Needy Families; the Women, Infants and Children program; Medicaid; Supplemental Nutrition Assistance Program; and receiving help on housing and utilities.

In Hawaii, that translates into a 2013 package of $49,175 — up $7,265 from an inflation-adjusted $41,910 in 1995. Rounding out the top five areas for welfare benefits, along with their 2013 amounts, were: the District of Columbia ($43,099), Massachusetts ($42,515), Connecticut ($38,761) and New Jersey ($38,728).

The state with the lowest benefits package in 2013 was Mississippi, at $16,984, followed by Tennessee ($17,413), Arkansas ($17,423), Idaho ($17,766) and Texas (18,037).

One change the authors noted between the surveys was a slight increase in the value of work to welfare, by a few dollars an hour. “There was some improvement of the relative value of work through the Earned Income Tax Credit, particularly at the state level, and the child tax credits,” Mr. Tanner said. “Those largely didn’t exist in 1995.”

Some states also are curbing some housing assistance, he said, and now requiring individuals who receive welfare benefits to pay their own rent.

The authors found that in 11 states, “welfare pays more than the average pretax first-year wage for a teacher [in those states]. In 39 states, it pays more than the starting wage for a secretary. And, in the three most generous states a person on welfare can take home more money than an entry-level computer programmer.”

[The Nature Boy 4,224]

http://blogs.wsj.com/economics/2013/08/19/work-or-welfare-what-pays-more/?mod=WSJ_hpp_MIDDLENexttoWhatsNewsThird

Surely you are mistaken... LOL it has got to stop. This is and teenage pregnancy are the root causes of of most of the problems in this country..

Kieth S rocks btw Love this one

https://www.youtube.com/watch?v=iEv0y4wopVk

Edited August 19, 2013 by The conciliator

[Karee 4,191]

Good luck taking any of those benefits away. Any politician that does that will be labelled a racist as well as someone that doesn't care about the poor.

[GandD 5,966]

Surely you are mistaken... LOL it has got to stop. This is and teenage pregnancy are the root causes of of most of the problems in this country..

This is a predictable comment from you and yours (second time I've used that phrase today and the second meaning behind it) In my own letter system, I'd blame the break down of traditional American values as a root cause for nearly everything.

Kieth S rocks btw Love this one

https://www.youtube.com/watch?v=iEv0y4wopVk

This...... not so much

[Harpa Timsah 13,260]

In 3...2...1...

[kytwell 179]

Good choice! Yes I like Keith S and most other late 80's early 90's R&B, New Jack Swing style of music.

Gotta include: New Edition, Shai, LSG, Bobby Brown, Guy, Tevin Campbell, Hi-Five, Jodeci, etc, etc.

I just went and saw Babyface a few weeks back. My co-worker calls it panty dropping music.

I don't know what the exact causes are, but this is a troubling predicament. There needs to be some incentive for people not to be leaches. There may be some who are truly down on their luck and need to be carried for a bit, but if it's easier to keep getting carried and they also may potentially experience a drop off in their quality of life by going to work- we'll have lifers gaming the system and breeding more of the same.

[The Nature Boy 4,224]

This is a predictable comment from you and yours (second time I've used that phrase today and the second meaning behind it) In my own letter system, I'd blame the break down of traditional American values as a root cause for nearly everything.

This...... not so much

and why has it broke down ?

[OnMyWayID 1,489]

This is a predictable comment from you and yours (second time I've used that phrase today and the second meaning behind it) In my own letter system, I'd blame the break down of traditional American values as a root cause for nearly everything.

Yeah but is he wrong? My wife has interacted with several refuge families in the last year. I know of two people in this group that are avoiding work so as not to jeopardize benefits. Anecdotal I know but clearly it is happening and it is what they are communicating to each other.

As far as teen pregnancy rates.. I only went back 12 years but it has fallen every year in the last 12 years.

[GandD 5,966]

and why has it broke down ?

I don't think that it has. Job market has gone down, and more people are out of work.

Yeah but is he wrong? My wife has interacted with several refuge families in the last year. I know of two people in this group that are avoiding work so as not to jeopardize benefits. Anecdotal I know but clearly it is happening and it is what they are communicating to each other.

As far as teen pregnancy rates.. I only went back 12 years but it has fallen every year in the last 12 years.

We all know people that will play the system. Rich people do it to extreme levels. Hell, they pay people to cheat for them. And we think they're brilliant?

As for the pregnancy rates.... exactly.

[OnMyWayID 1,489]

I don't think that it has. Job market has gone down, and more people are out of work.

We all know people that will play the system. Rich people do it to extreme levels. Hell, they pay people to cheat for them. And we think they're brilliant?

As for the pregnancy rates.... exactly.

True.. and I don't consider it a top priority but there are enough people abusing the system it may be worthwhile to explore how to make it less tenable for those working the system without doing harm to those really in need (I have no idea how).

There are rich people abusing the system but the article was not about that.. If there is an article posted about rich people abusing loopholes and steeling taxpayer money I promise not to bring up welfare

[GandD 5,966]

True.. and I don't consider it a top priority but there are enough people abusing the system it may be worthwhile to explore how to make it less tenable for those working the system without doing harm to those really in need (I have no idea how).

There are rich people abusing the system but the article was not about that.. If there is an article posted about rich people abusing loopholes and steeling taxpayer money I promise not to bring up welfare

Just trying to put it into perspective. Poor criminals and rich criminals should not be different. In fact the rich ones are no doubt depriving the tax system of way more money than the poor are taking. The bum stuff is a problem but me thinks it is exaggerated in order to get the middle class to think they're the ones paying for the poor so they'll identify with the richies. Poor guys.

BTW, I just finished up the Hitchhiker's guide to the Galaxy on Audiobook today. Pretty good read.

Edited August 20, 2013 by GandD

[Karee 4,191]

We all know people that will play the system. Rich people do it to extreme levels. Hell, they pay people to cheat for them. And we think they're brilliant?

Here's the difference. You don't see many politicians pandering to the rich out on the campaign trail by offering them them more breaks. However, they fall all over themselves offering more free stuff that make the poor more dependent on govt. I have no problem with the poor paying no/low income tax. I have a problem with the Earned Income Tax credit and other programs that pay the poor to stay poor.

[Penny Lane 8,159]

This is and teenage pregnancy are the root causes of of most of the problems in this country..

It's a good thing that teen pregnancy rates are consistently declining then, isn't it? Down over 25% between 2007-2011. Gonna have to find something else to blame if the trend continues.

As far as teen pregnancy rates.. I only went back 12 years but it has fallen every year in the last 12 years.

It has. It's amazing what sex education and access to contraceptives will do.

[Jacque67 7,328]

Here's the difference. You don't see many politicians pandering to the rich out on the campaign trail by offering them them more breaks. However, they fall all over themselves offering more free stuff that make the poor more dependent on govt. I have no problem with the poor paying no/low income tax. I have a problem with the Earned Income Tax credit and other programs that pay the poor to stay poor.

That's coz they pander to the rich at charity balls etc.