Why The Worst Economic Crisis Is On The Horizon
NYSEARCA:DIA, NYSEARCA:SPY, DJI:DJI, CBOE:SPX, NQ:COMP, NY:XAX Related posts: Why The Next Great Financial Crash Is Approaching Are You Prepared For An Economic Collapse? Economy: It Is Absolutely Amazing What Some People Are Doing To Make A Living In This Economy Barack Obama Has Destroyed The Future of America In Order To Improve His Chances Of Winning The Next Election

Economy recessionIf you could stay home and relax all day and actually make more money than you do at your current job, would you do it?  That sounds crazy, but this is actually a very real dilemma for millions upon millions of Americans.  According to a shocking new study that was just released by the Cato Institute, people on welfare are actually better off than minimum wage workers in 35 U.S. states.  And in 13 states, those on welfare actually do better than those making $15 an hour.  So why bother?  It is very difficult to find a job in this economy, especially a good one.  As I mentioned yesterday, seven out of every eight jobs that have been “created” since Barack Obama has been president have been part-time jobs.  Why slave away flipping burgers, stocking shelves for some retail giant or working for some temp agency when you could just sit home and make more money collecting government checks?  Yes, there is definitely a minority of Americans that hate the idea of becoming dependent on the government and would never want to take advantage of the system like that, but that minority seems to be shrinking.  At this point, about half the country gets money from the government each month anyway, so why not collect “your share”?  If someone is offering to give you something for free, it is only human nature to be at least a little bit tempted.  And right now the federal government is making it extremely tempting to give up on work entirely and become a permanent welfare check collector.

Before people start getting really upset, let me once again reiterate that most of the people that are receiving financial assistance from the government actually need it.  Not everyone is abusing the system, and not everyone is using their food stamps to buy lobster.

Poverty in the United States has absolutely exploded in recent years, and our economy simply does not produce enough jobs for everyone anymore.  We certainly do not want those without jobs to go hungry or to be sleeping in the streets.

But what we have today is a situation where there is a huge incentive in many states to actually give up on work entirely and become a dependent of the state instead.

According to the Cato Institute, someone in the state of New York that goes on welfare can bring home more in money and benefits than an entry-level school teacher makes in an entire year…

The federal government funds 126 separate programs targeted towards low-income people, 72 of which provide either cash or in-kind benefits to individuals. (The rest fund community-wide programs for low-income neighborhoods, with no direct benefits to individuals.) State and local governments operate more welfare programs. Of course, no individual or family gets benefits from all 72 programs, but many do get aid from a number of them at any point in time.

Today, the Cato institute is releasing a new study looking at the state-by-state value of welfare for a mother with two children. In the Empire State, a family receiving Temporary Assistance for Needy Families, Medicaid, food stamps, WIC, public housing, utility assistance and free commodities (like milk and cheese) would have a package of benefits worth $38,004, the seventh-highest in the nation.

While that might not sound overly generous, remember that welfare benefits aren’t taxed, while wages are. So someone in New York would have to earn more than $21 per hour to be better off than they would be on welfare. That’s more than the average statewide entry-level salary for a teacher.

If you are going to live off of welfare, the key is to pick the right state.  Not all states offer the same level of benefits.

In some states, you have to make far more than the minimum wage before it pays not to be on welfare.  In fact, there are 12 different states where you actually have to make more than $15 an hour before you start doing better than welfare recipients…

(...)Continue reading the original Market Daily News article: Why The Worst Economic Crisis Is On The HorizonYou are viewing a republication of Market Daily News content. You can find full Market Daily News articles on (www.marketdailynews.com)Related posts:
  1. Why The Next Great Financial Crash Is Approaching
  2. Are You Prepared For An Economic Collapse?
  3. Economy: It Is Absolutely Amazing What Some People Are Doing To Make A Living In This Economy
  4. Barack Obama Has Destroyed The Future of America In Order To Improve His Chances Of Winning The Next Election
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