Study: Welfare pays more than work in most states

The Daily Caller ^ | 20 Aug 2013 | Michael Bastasch

[mandaladon]

Looking for a good paying job? Well, look no further.

No, really, stop looking. In 35 states, welfare benefits pay more than a minimum wage job, according to a new study by the libertarian Cato Institute, and in 13 states welfare pays more than $15 per hour.

“One of the single best ways to climb out of poverty is taking a job, but as long as welfare provides a better standard of living than an entry-level job, recipients will continue to choose it over work,” said Michael Tanner, senior policy analyst and co-author of the study.

The study is an updated version of one Tanner put out in 1995 that estimated the full value of welfare benefits packages across the states. The 1995 study found that such tax-free welfare benefits greatly exceeded the poverty level and “their dollar value was greater than the amount of take-home income a worker would receive from an entry-level job.”

Despite efforts to curb welfare spending, many welfare programs and benefits have continued to outpace the income that many workers can receive for working an entry-level job, which disincentivizes work, according to the study.

“The current welfare system provides such a high level of benefits that it acts as a disincentive for work,” reads the study. “Welfare currently pays more than a minimum-wage job in 35 states, even after accounting for the Earned Income Tax Credit, and in 13 states it pays more than $15 per hour.”

According to the study, the federal government funds 126 separate programs designed to support low-income earners. Seventy-two of these programs provide cash or in-kind benefits to recipients. This is on top of additional welfare programs operated by state and local governments.

[libertarian27]

...there are people with EBT card who actually are working real jobs trying to pay the bills and make ends meet.

18% do in my state - other states are higher - heck, all but one is higher.
MA state welfare equivilent is over 40hrwk/$24/per hr - ugh
Check out the report at CATO

[Colorado Doug]

Good for you! I hope things are looking up for you. Things can be rough in this obama economy.

[heye2monn]

<<>> You're onto something here. Contrary to conservative economists, liberals claim that raising the minimum wage boosts employment. It sounds contradictory to free market principles, but in fact a higher minimum will tempt some people off the welfare rolls. But that's backwards. There shouldn't be so many people on the dole in the first place.

[listenhillary]

Sad bump