Monday, August 27, 2018

7 Things I'd Do if I Wanted to Keep Poor People Poor - Foundation for Economic Education

7 Things I'd Do if I Wanted to Keep Poor People Poor - Foundation for Economic Education
"If I wanted to keep poor people poor, there are several government policies I would favor. 
Let's count them down.
1: An Expanding Welfare State
For starters, I would advocate for a robust and ever-expanding welfare state—programs like Medicaid, food stamps, unemployment insurance, etc.
I would recognize that an effective recipe for keeping poor people poor is to create incentives that push them into decisions that prevent them from climbing out of poverty.
Case in point: A 2012 study by Pennsylvania’s Secretary of Public Welfare analyzed the decisions confronting individuals and families enrolled in various government welfare programs. 
See the source imageSpecifically, the study concluded that in the case of a single mother with two children ages 1 and 4 earning $29,000 a year through work would be eligible for government benefits (such as Medicaid, housing vouchers, and subsidized daycare) equivalent to roughly an additional $28,000.
Such a scenario puts this woman in a bind. 
If she finds a better job paying more, or picks up more hours, she risks losing substantial amounts of benefits. 
...It is a vicious, self-reinforcing cycle that keeps people poor and dependent on the state.
...Moreover, there is the impact the welfare state has on the family unit. 
Welfare programs break up families by replacing a father’s paycheck with a government check and benefits. 
Nationally, since LBJ’s Great Society ratcheted up government welfare programs in the mid-1960s, the rate of unmarried births has tripled.
In my home state of North Carolina, families are roughly five times as likely to be in poverty when there is no father in the home.
2: Progressive Taxation Policy
If I wanted to keep poor people poor, I also would finance the welfare state poverty trap through punitive taxes on the job and wealth creators of society..."
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