Sunday, August 25, 2013

Welfare - Smellfare - And The Minimum Wage

Abundant welfare causes abuse, corruption, and fraud. These things seem to go together -  at least in America. Years ago people were ashamed and embarrassed that they had to go on the dole.   Those days are apparently gone forever. Today people take pride in scamming the system.  The more a family can pry out of welfare schemes the better.  There is no shame. Somewhere in the latter half of the 20th century families fell apart, single parent homes became the norm, and adults had to work or receive welfare to exist. For an increasing number of parents the burden was just too much. Welfare recipients increased exponentially. More and more people depended on state and federal agencies to keep their broken family units going. 

The "minimum wage" was wrongly blamed. Poor folks were told that it was too low  compared to the costs of living and if tax paying citizens doubled the minimum wage their money problems of the poor would go away. This was and is baloney. The unintended consequence is that more jobs for the poor simply go away. The cost of goods becomes too expensive and market forces more goods to be purchased from other countries (off-shore). 

Liberal politicians and gullible followers insist: 

  • that citizens pay more taxes to the government. 
  • Government increases in size and power to handle the money. 
  • the minimum wage is increased to match the agreed on poverty level. 
  • more tariffs be collected on imported goods. 
  • the government will subsidize selected producers to enable competition abroad.
Conservative politicians insist each one of the above concepts will make the problem worse (not better).

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