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Welfare Moms Gets More Than $69,000 Job

From James Pethokoukis at the American Enterprise Institute:

(Click to enlarge)

Why a single mom is better off with a $29,000 job and welfare than taking a $69,000 job

By James Pethokoukis | Wednesday, July 18, 2012

The U.S. welfare system sure creates some crazy disincentives to working your way up the ladder. Benefits stacked upon benefits can mean it is financially better, at least in the short term, to stay at a lower-paying jobs rather than taking a higher paying job and losing those benefits. This is called the “welfare cliff.”

Let’s take the example of a single mom with two kids, 1 and 4. She has a $29,000 a year job, putting the kids in daycare during the day while she works.

As the above chart – via Gary Alexander, Pennsylvania’s secretary of Public Welfare — shows, the single mom is better off earning gross income of $29,000 with $57,327 in net income and benefits than to earn gross income of $69,000 with net income & benefits of $57,045.

It would sure be tempting for that mom to keep the status quo rather than take the new job, even though the new position might lead to further career advancement and a higher standard of living…

Remember ‘The Life Of Julia,’ the Obama campaign’s cartoon of the ideal Democrat woman? Remember how she appeared to be a single mother, since there was no mention of a man in her life?

Well, under our welfare system, Obama’s Julia would be better off staying at a lower-paying job rather than finding a higher paying job and losing your welfare benefits. So she should never try to get ahead. She should make sure she never makes too much money and lose her benefits.

This is the entitlements trap that people talk about. And it is no accident. The Democrat Party wants things this way.

This article was posted by Steve on Wednesday, July 18th, 2012. Comments are currently closed.

4 Responses to “Welfare Moms Gets More Than $69,000 Job”

  1. ilzito guacamolito says:

    It’s all part of the plan.

  2. Astravogel says:

    We’uns is all happy to stay on the plantation. They’uns take good care of we’uns.

  3. GetBackJack says:

    I better have me and the Mrs. better have ourselves declared illegal aliens as we can be treated with respect by the federal government.

  4. mr_bill says:

    I’m thinking about it from the other side. If “Julia” makes $29,000 and her net benefits are $57,045, then $28,045 of her “income” is funded by taxpayers. How many average taxpayers does it take to fund one “Julia?” How many “Julias” are there in the country? On top of that, those of us footing the bill for all the Julias have to fund the rest of the government’s ridiculous spending. nerobama needs lots of money to give to his friends so they can start “green energy companies.”

    And the left can’t figure out why the Tea Party is a little upset…

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