Tuesday, November 27, 2012

The Welfare Cliff

It Doesn’t Pay to Work | Power Line: "[I]t is now more lucrative – in the form of actual disposable income – to sit, do nothing, and collect various welfare entitlements, than to work. This is graphically, and very painfully confirmed, in the below chart from Gary Alexander, Secretary of Public Welfare, Commonwealth of Pennsylvania (a state best known for its broke capital Harrisburg). As quantitied, and explained by Alexander, “the single mom is better off earning gross income of $29,000 with $57,327 in net income & benefits than to earn gross income of $69,000 with net income and benefits of $57,045.“
This chart, created by the Pennsylvania Department of Public Welfare, explains the calculation:"
We are constantly told that it is difficult to find any state or federal spending that can possibly be cut. This suggestion is, I think, ludicrous. Let’s start by cutting welfare, and cutting it deeply. Not only because it is wasteful, but because by devaluing work it threatens to cripple not merely our economy, but our culture. An America where you are better off cashing welfare checks than working is an America that cannot long survive.
And we won't.