Straw man here: I live in a poor area of a poor state and have know a few people on SNAP and working full time. These are folks doing everything our society asks, their pay just isn’t enough.
I have never seen a study that shows work requirements do anything other than throw up barriers to participation, which I guess proponents cite as evidence it works, it’s chasing away those that work. My strawman stuff shows it just makes it too difficult for eligible people to navigate
I agree, Scott — I have also not seen evidence that work requirements do much beyond adding to administrative bloat and creating hurdles to participation.
I believe the most capitalistic and efficient way to help people in poverty is to just give them what they need: cash. That’s not exactly a realistic option with where the U.S. is, so I’ll take minimizing barriers for safety net programs.
It is a little dated now but back in the mid 2010s there was a study that found roughly 80% of receiptants worked. The problem is not people not wanting to work. There is no evidence it ever was.. building better entitlement and assistance programs is about listening to the people that need them.
Yes, I have seen that same study cited plenty of times. I wholeheartedly agree that policymakers need to listen to the needs of the people who are supported by these programs.
We also need to address wages. Take Walmart, for example. I wrote a piece for my Substack a few weeks ago in which I point out that Walmart is the largest employer of SNAP beneficiaries and also takes in ~25% of SNAP funds spent on groceries. It’s a closed circuit of corporate welfare.
This is also true for the Earned Income Tax Credit, but I still think EITC is warranted. There is a tradeoff between welfare for the poor and welfare for corporations that employ them. Minimum wage comes out of the pockets of companies; SNAP and EITC and housing subsidies make it possible for people to work for less -- it "breaks" David Ricardo's "Iron Law of Wages" -- that companies cannot pay less than a living wage. It is useful to keep in mind that
The top 20% of earners paid approximately 83.6% of all federal taxes in 2021.
The top 10% of earners paid about 72% of all federal income taxes in 2022.
The top 50% of earners were responsible for roughly 97% of all federal income taxes collected.
according to the Economic Policy Innovation Center (EPIC) and the Tax Foundation
I tell people that the United States is a Social Democracy already - has been at least since the 60s, but really since Social Security was created in 1935. About 55% of the Federal budget goes to social services -- mostly for people over 65. It is pretty straightforward -- the more unequal income is, the fewer people can afford decent food, housing and transportation. So we redistribute, if only so there will be enough workers with food in their stomachs and a roof over their heads to provide essential services.
Straw man here: I live in a poor area of a poor state and have know a few people on SNAP and working full time. These are folks doing everything our society asks, their pay just isn’t enough.
I have never seen a study that shows work requirements do anything other than throw up barriers to participation, which I guess proponents cite as evidence it works, it’s chasing away those that work. My strawman stuff shows it just makes it too difficult for eligible people to navigate
I agree, Scott — I have also not seen evidence that work requirements do much beyond adding to administrative bloat and creating hurdles to participation.
I believe the most capitalistic and efficient way to help people in poverty is to just give them what they need: cash. That’s not exactly a realistic option with where the U.S. is, so I’ll take minimizing barriers for safety net programs.
It is a little dated now but back in the mid 2010s there was a study that found roughly 80% of receiptants worked. The problem is not people not wanting to work. There is no evidence it ever was.. building better entitlement and assistance programs is about listening to the people that need them.
Yes, I have seen that same study cited plenty of times. I wholeheartedly agree that policymakers need to listen to the needs of the people who are supported by these programs.
We also need to address wages. Take Walmart, for example. I wrote a piece for my Substack a few weeks ago in which I point out that Walmart is the largest employer of SNAP beneficiaries and also takes in ~25% of SNAP funds spent on groceries. It’s a closed circuit of corporate welfare.
Yeah i had heard that. State subsidies for corporations. In many ways it help increase inequality.
This is also true for the Earned Income Tax Credit, but I still think EITC is warranted. There is a tradeoff between welfare for the poor and welfare for corporations that employ them. Minimum wage comes out of the pockets of companies; SNAP and EITC and housing subsidies make it possible for people to work for less -- it "breaks" David Ricardo's "Iron Law of Wages" -- that companies cannot pay less than a living wage. It is useful to keep in mind that
The top 20% of earners paid approximately 83.6% of all federal taxes in 2021.
The top 10% of earners paid about 72% of all federal income taxes in 2022.
The top 50% of earners were responsible for roughly 97% of all federal income taxes collected.
according to the Economic Policy Innovation Center (EPIC) and the Tax Foundation
It is mind-boggling that so many people don’t make enough money to pay any federal taxes.
I tell people that the United States is a Social Democracy already - has been at least since the 60s, but really since Social Security was created in 1935. About 55% of the Federal budget goes to social services -- mostly for people over 65. It is pretty straightforward -- the more unequal income is, the fewer people can afford decent food, housing and transportation. So we redistribute, if only so there will be enough workers with food in their stomachs and a roof over their heads to provide essential services.
That’s an interesting perspective. Thanks for sharing, and I agree with your take.