I’m talking about my Australian welfare system - I have mentioned numerous times in yhis thread, incliding my very last post) that I am Australian. OUR unemployment is the one that is probably half the minimum wage, even including the other concessions. A high minimum wage relative to welfare is an excellent incentive towards the good behaviour (ie getting a job) and an excellent incentive to avoid the undesirable (ie staying on welfare when able to work). One reason among many that our unemployment rate is only 5%. There seem to be plenty of jobs here for most of those who want em despite our evil much higher minimum wage.
Hi Lily,
I’m a little slow I guess. I forgot you were from Australia, it took me a while to remember. Here in the USA people who get assistance with rent and cash from one place or another and food stamps and free healthcare wind up with probably close to 3x what minimum wage is if their income (cash and non cash) were compared to the gross income of someone who works for a living.
And there is also the incentive of not having to work at all. I’m pretty that a value can be put on that as well. I realize that students in medical school are not dropping out to get on the USA’s welfare (again, I use this term loosely to include any of the various cash and/or non cash benefits from taxspayers) gravy train. But to a person who was raised in a home where the family lived off of taxpayers their whole life, well I’ll just say that I’m willing to bet that more than a small minority of these children get on the welfare rolls as adults and stay there. It’s what they know. And as inflation continues to rise getting on ‘the dole’ is going to seem more and more attractive to working poor people. Most will probably continue to work as they have a work ethic, but to anyone who can’t hold a job for whatever reason and anyone raised in a home run by other people’s tax dollars, or those raised by the state in youth group homes or whatever…my guess is that more and more are going to be going for the various types of ‘welfare’.
We have in the usa something called ‘section 8’. It’s a progam for poor people to help them pay their rent. They pay 30% of their income towards rent, taxes pick up the rest paying the landlord the difference to equate to full market value. Anyone is eligible if they have a low enough income, but the wait lists are extremely long (like 10 years)… EXCEPT for people who have ‘special criteria’ which will move them up the list and make their wait times much shorter. If someone is homeless, diisabled (that is a term that is misunderstood IMO- my father is ‘disabled’ because he has back and heart problems- but you would not know it if you met him- which is true of many ‘disabled’ in the usa, you would not know or suspect they are disabled.
People who live in homeless shelters for months typically wind up applying for disability, and typically wind up getting approved. This gives them a check for about $750/month if they have no work history. If they have worked for at least a few years in their life they will get more, if they had a high paying job, they will get substantially more. What I find very interesting is that many of these people now qualify for special status in at least 2 catagories: homeless and disabled, allowing their wait for housing (a 1BR apt to themself) to be shortened…not sure but think less than a year. They would pay $225 for an apartment that runs over $1,000 and would still have $525/month cash to get by on. Many are very interested in this and go for it. But there are also many who are addicted to drugs and refuse to go for that because they would prefer to have the extra $225/month for drugs and continue to live in the homeless shelter rather than having a nice $1,000- $1,150 (Boston, MA rents are on the high side compared to country wide is my understanding- these would be the cheapest available) a month apartment which they would only have to pay $225 to live in. So they go on, month after month, year after year, living in homeless shelters and jail spending the $750 within the first 5 days of the month and then beg, borrow, and steal the rest of the month to get money for drugs. It’s a sad situation and since the cash is from an entitlement program that won’t be held back as an incentive for them to get treatment for drug addiction, since their are ‘wet’ shelters (people can come in as drunk or high as they want, they just have to be able to make it to their bed and there is no time limit on staying and no requirements like even making their bed or flushing the toilet after themselves… let alone being polite, volunteering to clean the shelter, whatever…go to job training…
I think it’s very sad, enabling terribly destructive behavior when people in those circumstances are supposed to be ‘getting help’. And as each month, each year passes, any potential habilitation is going to be more difficult. After about a decade or so it will be next to impossible, depending on their age.