Welfare Pays Better Than Work, Study Finds

I came across this study done back in 1996 and now if we add the inflation prices that Welfare has now increased to this study might well have answered what many have been saying for a long time.
With this past election and the amount of money that the Democratic party wants to help the lower incomes are we further feeding the frenzy.

What's your opinion. If we lower the welfare rate wouldn't that push people to try a little harder to get off their sofa's and get a job and then in that job they can work for improvement? In essence we are treating people like we do farmers...we pay them not to grow crops, so are we paying people not to work?

Give me your thoughts....no bashing...just thoughts.

Welfare Pays Better Than Work, Study Finds
$36,000 a Year in Hawaii

Welfare benefits are far more generous than commonly thought and substantially exceed the amount a recipient could earn in an entry-level job. As a result, recipients are likely to choose welfare over work, increasing long-term dependence. Those are the principal findings in "The Work vs. Welfare Trade-Off" (Policy Analysis no. 240) by Michael Tanner, director of health and welfare studies; Stephen Moore, director of fiscal policy studies; and David Hartman, CEO of Hartland Bank in Austin, Texas. The paper was released at the height of the welfare debate in Congress.

The study examines the combined value of benefits--including Aid to Families with Dependent Children, food stamps, Medicaid, and others--for a typical welfare recipient in each of the 50 states. The value of those tax-free benefits is then compared with the amount of take-home income a worker would have left after paying taxes on an equivalent pretax income. The following are among the study's findings.

* To match the value of welfare benefits, a mother with two children would have to earn as much as $36,400 in Hawaii or as little as $11,500 in Mississippi.

* In New York, Massachusetts, Connecticut, the District of Columbia, Hawaii, Alaska, and Rhode Island, welfare pays more than a $12.00-an-hour job--or more than two and a half times the minimum wage.

* In 40 states welfare pays more than an $8.00-an-hour job. In 17 states the welfare package is more generous than a $10.00-an-hour job.

* Welfare benefits are especially generous in large cities. Welfare provides the equivalent of an hourly pretax wage of $14.75 in New York City, $12.45 in Philadelphia, $11.35 in Baltimore, and $10.90 in Detroit.

* In 9 states welfare pays more than the average first-year salary for a teacher. In 29 states it pays more than the average starting salary for a secretary. In 47 states welfare pays more than a janitor earns. Indeed, in the 6 most generous states, benefits exceed the entry-level salary for a computer programmer.

The authors conclude that if Congress or state governments are serious about reducing welfare dependence and rewarding work, the most promising reform is to cut benefit levels substantially.

The study has been the subject of major news coverage. In a September 28 Wall Street Journal guest column, Tanner and Moore wrote, "The welfare reform proposals just passed by the Senate, and the earlier House version, are designed to reduce 'hard-core' welfare dependency and reward work. But we believe the most critical public policy implication of our findings is that ultimately these goals can be accomplished only by cutting benefit levels substantially. Unless and until this is done, Congress will have failed to end welfare as we know it."

Hourly Wage Equivalent of Welfare
Hawaii $17.50
Alaska 15.48
Massachusetts 14.66
Connecticut 14.23
Washington, D.C. 13.99
New York 13.13
New Jersey 12.74
Rhode Island 12.55
California 11.59
Virginia 11.11
Maryland 10.96
New Hampshire 10.96
Maine 10.38
Delaware 10.34
Colorado 10.05
Vermont 10.05
Minnesota 10.00
Washington 9.95
Nevada 9.71
Utah 9.57
Michigan 9.47
Pennsylvania 9.47
Illinois 9.33
Wisconsin 9.33
Oregon 9.23
Wyoming 9.18
Indiana 9.13
Iowa 9.13
New Mexico 8.94
Florida 8.75
Idaho 8.65
Oklahoma 8.51
Kansas 8.46
North Dakota 8.46
Georgia 8.37
Ohio 8.37
South Dakata 8.32
Louisana 8.17
Kentucky 8.08
North Carolina 8.08
Montana 7.84
South Carolina 7.79
Nebraska 7.64
Texas 7.31
West Virginia 7.31
Missouri 7.16
Arizona 6.78
Tennessee 6.59
Arkansas 6.35
Alabama 6.25
Mississippi 5.53

This article originally appeared in the November/December 1995 edition of Cato Policy Report.
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  • Jimbob Hula gi... 2009/01/10 12:05:41
    I remember seeing a news report years ago about welfare being a "family business". Generations...yes..plural...h... been abusing the welfare system. This is just so inconceivable to me how the government has let it run so far out of control for so long. The sad part is, it's probably too late to fix it.
  • safari emmames... 2009/01/10 07:26:35
    I believe you emma. Shame on them for not being interested.
  • Self - Deactivation. 2009/01/10 01:15:04
    Self - Deactivation.
    the system seems more apt to keep people on it, rather than wean them off of it. there should be a time limit, wherein someone can get training and a job. let them stay attached to the system through the transition, put a bit in savings and then go out into the real world. of course there would be exceptions to this, as some are really in need, but for the most part, it becomes a way of life
  • emmames... Self - ... 2009/01/10 01:31:16
    emmamess ~ In My Conscience I Trust ~`
    yall are nuts - there is no welfare any more - why doesn't anyone seem to know this!
  • Self - ... emmames... 2009/01/10 01:34:16
    Self - Deactivation.
    then i would like to know where low cost or free housing comes from along with free medical and food stamps
  • Greatbe... emmames... 2009/01/10 08:26:51 (edited)
    Greatbear100~support our vets
    Welfare today is not the welfare of 1995 and I do believe it is not that easy to get on welfare. As for low income housing for the elderly and disabled what is wrong with that? These people are living on Social Security, SSD based on what they paid into the system working all their lives, or SSI which can either supplement SSD when it is too low, or is a kind of welfare since it is not based on taxes paid when the person worked and you can collect SSI with never having worked.
    The elderly or diabled need rental assiatance, food stamps, heating assitance and medical.
    I don't understand how illegal aliens collect benefits of any kind. The most they should get is a bus ride across the border.
    By the way I voted for McCain and don't believe in giving hand outs to everyone but helping those who need it especially the elderly and disabled.
    How about not paying Social Security to millionaires? They don't really need it but take that check every month?
  • Hula gi... Greatbe... 2009/01/10 08:39:11
    Hula girl - Friends not Followers
    That's not true. I have been helping the homeless. One of the girls is 38 and has lived on the street off and on since she was 12. She didn't pay into the social security system. All those on the street that I would talk to everyday got Social Security checks...they would get a direct deposit and the drug dealers knew when the checks came out too as many load up on their crack as I have worked hard to get them off the street. These people haven't been working...some never..they get social security...food stamps, free medical, free vision, free dental, clothes if they want and so many other stuff. They walk around with their new IPod they got and yet not working. There are ways the illegal get money all the time...they also know how to get illegal social security cards, fake ID and all types of benefits.
    There are no checks and balances and the excuse is that there isn't enough money to hire more staff to check into people....guess what people...if we have less on welfare we'd have more money to staff the needs of the system.
  • mariavi... Greatbe... 2012/08/24 16:37:21
    Illegal immigrants do not get benefits unless someone issues them a fake or stolen SS number. And that is VERY rare...
  • Sexy Conservative 2009/01/10 00:50:07
    Sexy Conservative
    LOL Duh that is why everyone voted for Barry. lol duh voted barry

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Hula girl - Friends not Followers

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2008/06/04 21:22:02

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