Let's say we have a Mom and two kids. So Gross income would be a whopping $21000/yr less FICA of $1125 we have a take home pay of $19,875 or $1656/mo. The average cost of 1 bedroom apartment in largest 200 cities in the US is $1,025 leaving $631 a month or $147/week to live on. Now if Mom is really smart, extremely frugal, she just might be able to buy groceries and pay utilities, walk miles to works instead of paying $4/day to ride the bus, convince the teachers to provide schools supplies and miscellaneous expense for the kids, never buy new clothes for the family, never go to a dentist, a barbershop or a hair salon, never drink, never smoke, never pay credit card interest, and certainly not squander money on toys for the kids, Christmas, birthdays, entertainment, etc..It's called making people work, train, or volunteer while on food stamps:
Thousands Cured Of Poverty After Georgia Introduces Work-For-Food-Stamp Requirement – MILO NEWS
Thousands of people have been miraculously cured of poverty in Georgia following the state’s implementation of a requirement that all those receiving stamps must either be working, training for a job, or volunteering for a non-profit or charity.
According to The Atlanta Journal-Constitution, “Georgia has been rolling out work requirements for food stamp recipients for over a year.”
The outlet states that the latest rollout saw the requirements reach 21 counties, affecting roughly 12,000 able-bodied people without children.
Those people were given until April 1 to fulfil the aforementioned requirement. But when that date rolled around, The Journal-Constitution, citing state figures, reports that more than half of the food stamp recipients were dropped from the program.
“Essentially, the number of recipients spiraled down from 11,779 to 4,528, or a drop of 62 percent,” the outlet states.
According to The Journal-Constitution Georgian officials are looking at expanding the food stamp requirements to all 159 counties in the state by 2019.
“The greater good is people being employed, being productive, and contributing to the state,” said Bobby Cagle, head of Georgia’s Division of Family and Children Services, according to the outlet...
I've long said that any long-term people on welfare should be required to work in the fields or volunteer 20 hours per week for a government or non-profit agency unless they have a serious and medically-documented condition that precludes them from doing so. We should roll this program out nationwide.
Gingrich offered this solution:
Newt refers to a proposal by Peter Ferrara, who was in the White House Office of Policy Development under President Ronald Reagan. The proposal goes like this:
Block grants would still be provided to the states, and states would guarantee a day’s work assignment (paying the minimum wage) to everyone who reports to their local welfare office before 9:00 a.m.
According to Newt, “The welfare office would provide free daycare for participants’ small children”, and the children would “receive medical care and treatment when necessary” (page 190).
Moreover, those working a certain number of hours would receive a Medicaid voucher for private health insurance as well as housing assistance so they could purchase a home. They would also receive the earned-income tax credit. Newt also affirms that the disabled would be trained for some line of work.
Based on minimum wage of $7.25, or $15,000 for a full year’s work, plus EITC, which is $3,000 with one child, and $5,000 with two, plus $1,000 per child tax credit. This plus the in-kind transfers of child care and health care, are an adequate safety net. “What I like about this proposal is that it would give welfare recipients work experience and job skills rather than setting welfare against work.” Newt Gingrich’s To Save America 7: Welfare Reform, Health Care
- The system would also end all incentives for having children outside of marriage, as a parent would have to work to support a child.
The problem is most people that can't seem to find a job and are living on welfare are not that smart. Most have vices. They drink, smoke, or do drugs and certainly aren't very frugal. They throw their money away on stuff for the kids, don't know how to really budget, run out of money, and then borrow at a high interest rates.
So while this plan fits the 1% of those on government subsidies, what happens to the other 99%?
Actually, I think you've made a pretty good attempt at analysis....but far too many hypotheticals.
1. Begin here: let not the perfect be the enemy of the good.
Before Liberals took over welfare/charity....no one was starving.
2. There are many reasons whey government welfare is an abject failure.
From Peter Ferrara, “America’s Ticking Bankruptcy Bomb,” chapter five.
‘Welfare’ as a wholly owned subsidiary of the government, and its main result is the incentivizing of a disrespect for oneself, and for the entity that provides the welfare. As more folks in a poor neighborhood languish with little or no work, entire local culture begins to change: daily work is no longer the expected social norm. Extended periods of hanging around the neighborhood, neither working nor going to school becoming more and more socially acceptable.
Since productive activity not making any economic sense because of the work disincentives of the welfare plantation, other kinds of activities proliferate: drug and alcohol abuse, crime, recreational sex, illegitimacy, and family breakup are the new social norms, as does the culture of violence.
3. While this statement of yours is a cornerstone of Liberal policy....it has been proven to be totally false.
"The problem is most people that can't seem to find a job and are living on welfare are not that smart. "
The Welfare Reform Act of 1996 was a great success.
Poverty fell, welfare recipients worked, and the plan was a success....until Obama torpedoed it.
"....liberals proclaimed that the bill would slash the incomes of one fifth of American families with children and push 2.6 million people into poverty. Senator Daniel Patrick Moynihan (D., N.Y.) famously predicted the bill would leave children scavenging in the streets, “sleeping on grates, picked up in the morning frozen.” In reality, welfare reform cut welfare caseloads by over 50 percent. Employment of the least skilled single mothers surged, and the poverty rates of black children and single-parent families rapidly dropped to historic lows. Doomsday prophets were discredited, and welfare reform has remained enduringly popular."
Welfare Reform: Two Decades of Success
4. But...you indirectly hit on a problem with ending government welfare: Liberal tax policy would obviate getting a job....and that is on purpose.
- those who try to work to find their way out of the trap will find that, as income rises, the loss of their welfare benefits is the same as a huge tax on their earnings!
Taking a job and giving up welfare would result in a tax rate of almost 73%.
If you have an interest, I will explain exactly how that occurs.