As low as minimum wage is, it's still more than welfare. The only welfare that pays more than work - way more than work - is corporate welfare in the form of trillions of dollars in subsidies to Big Oil, Big Coal, Big Gas, Big Ag, Big Pharma and Wall Street every year.
Josh Barro at Business Insider:
The Cato Institute is out with an update to their 1995 study which purports to show that, in most states, welfare pays better than work.
They add up benefits available through eight programs to a low-income
woman with two children, and find total benefit values well in excess
of full-time minimum wage work, or even, in some states, middle-skill
work.
The study is called "The Welfare-Versus-Work Tradeoff," and it's
meant to show why people don't get off welfare. And it's B.S., for three
reasons.
1. Very few people actually qualify for all eight of the programs
Cato looks at. Particularly, Temporary Assistance to Needy Families
(cash welfare) and housing assistance can provide some very expensive
benefits. But fewer than two million households get TANF and only about
four million get housing assistance. It
is much more typical for a welfare beneficiary to be getting SNAP (food
stamps) and Medicaid (health insurance), but no assistance with housing
or cash. So, the typical welfare benefit is much lower than Cato makes
out, making staying on welfare less appealing.
2. Welfare benefits for single adults are much less generous than those for women with children.
3. Not all benefits are lost when a welfare recipient starts working.
SNAP benefits phase out gradually with rising income. People who go
back to work don't necessarily lose health benefits, either. Some get
new health benefits through work. The children of low-income uninsured
workers qualify for the Children's Health Insurance Program in most
states. In some states, low-income working adults even qualify for
Medicaid. So, going back to work doesn't mean nearly the loss of
benefits that Cato implies.
Not to mention that at least 25 percent of people eligible for food stamps, TANF, subsidized house and other "welfare" benefits don't even apply for the benefits they deserve.
And speaking of "deserving," how much do the taxpayers waste on
corporate welfare? Billions of dollars per year just for the fossil fuel industry: even if you distributed it evenly among all the stockholders, it's got to be more than a single mother of two gets from our shredded safety net.