The Myth of Welfare’s Corrupting Influence on the Poor
nytimes.com
nytimes.com
For example, Tesla receive about 5b$ of government subsidies. http://www.latimes.com/business/la-fi-hy-musk-subsidies-2015... This, I think, is investment which really worth it, it's the most innovative automotive company in the world, and it would be impossible without this.
Here're their largest points:
1. $1268 - for overpriced medications
2. $1231 - for revenue loss from tax havens
3. $870 - for corporate tax subsidies
All of them are very questionable.
The two sources at the bottom of the graphic are redirected to the following:
http://www.commondreams.org/views/2013/09/23/add-it-average-...
https://www.whitehouse.gov/2014-taxreceipt
It looks like this claim is based on aggregating direct subsidies, inflated profits enabled by government mandates and protections, and lost tax income resulting from preferential tax policies and tax shelters.
Then there's the corporate subsidies, they're more interesting because they're not necessarily wrong. Perhaps this number is but in general they're very high, but not in the way people normally think about subsidies. I see numbers thrown around all the time with murky definitions and it's misleading.
For example, the IMF did a study that showed $5.3 trillion in oil subsidies worldwide. Gigantic number, consider world GDP is $75 trillion, US a little under $18 t.
Now I'm sympathetic to the study, agree with it, and think we should take that number seriously and do something about it. I also think it constitutes a form of subsidy.
But it's a bit misleading to say this means we're all paying thousands of dollars to corporate subsidies on this basis from our actual paycheck. There are different forms of subsidies and there's value in not muddying the semantics too much.
What the study measures are externalities that aren't priced in. A person dies in motorised traffic? You can combat it by pricing that into the price of oil. A climate change related natural disaster happens, or we have to pay for CO2 cleanup, or healthcare costs rise due to oil-industry fumes causing lung cancer somewhere, you can price all of that in. Not pricing that in is a form of subsidy, but it's not like we take thousands of dollars from our pay check and send it to the companies to support them, very little money goes to these companies, the issue is we don't extract enough from them that we should once we look at the damage they cause, and this is technically a subsidy. The IMF measures the missed revenue from taxing fossil fuels at a lower range than it should if it prices in all externalities.
Yet I've seen renowned green energy pundits in my country (the Netherlands) talk about these $5.3 trillion subsidies as if we're sending that money to corporations every year. I'm completely on their side, yet I don't think this is helpful, there's too much misleading information thrown around.
No one likes a complicated manipulated tax code that favors certain firms/industries, but equating a complicated tax code that sets a higher tax rate than is normally collected to transferring tax payer dollars to shareholders of corporations is dishonest.
One of the most perverted ways they are abused is they are convinced to vote against their own interests. For example thinking back at Obama's healthcare reform and the fate of the single payer option vis-a-vis the "get your socialist government outta my Medicare" crowd. Even further up the line, gutting education also pretty much ensures a future crowd of uneducated easily manipulated crowds for the next generation to abuse and take advantage of. So the system is already set to self-perpetuate.
As a side note, speaking of manipulating, a good example is always Bush Jr. using evangelicals in his campaigns in early 2000s.
http://www.pbs.org/wgbh/pages/frontline/shows/jesus/evangeli...
I think that was a brilliant move to use them, because they were a lot of them (1), they were relatively wealthy (2), they were easily reached, as they already congregated in large clubs i.e. megachurches (3), they are easily brainwashed with the right words (4).
But I have a hard time believing that each poor person with less than a month in savings, working for some fast food chain, is making a rational decision voting against nationalized health care or rasing taxes, just in case they reach the American Dream, and become a successful owner of a small busininess who will be strangled and starved by high taxes from Uncle Sam when they do.
One of the biggest lies is that the rich got the poor to think of themselves as not poor, but pre-wealthy. They are just a few hard working years ago from being Donald Trump, if they just worked a bit hard (because if they don't they are just a lazy and deserve it). So as such, they sure wouldn't want to vote against the interest of the future successful selves...
The alternative to believing that you are pre-wealthy is believing that you are stuck in your current socio-economic class and don't really need to strive for anything. Working towards a goal is a benefit in it of itself. Explains why those that are handed everything in life are often unhappy.
The ironic thing is people angered by inequality and also angered by the belief that social mobility is even possible.
I am second-guessing based on their actions not just beliefs. After talking to wealthy acquintances and poor ones, I can see why the wealthy might not mind paying more taxes longer term. After talking to more poor acquintances and how they justify how and why they vote, I don't a good rational explanation often.
> Working towards a goal is a benefit in it of itself.
That's a good point. I believe in that as well. I just think it is better if goals are realistic and it is important to understand how the world works and how power is distributed, should they want to make any change or affect or change it, they'd be able to.
I was on the other end of the spectrum. I had a good insurance through a small company and because of Obama care also kind of got screwed insurance company raised our rates 50%+ in a couple of years before the whole thing started to go into effect.
Around grade 5 I began to notice how we never had money for a TV, but all the welfare kids I knew had TVs in their rooms. i noticed how I had to do chores, work, save, and help neighbours to afford to buy a game console and video games, and all my friends on welfare had every system and every game.
I would wonder why my lunch had an apple in place of their Fruit Rollups and Cookies. One kid even got a pack of starbursts in his lunch every single day, if I was lucky, he would share or trade one with me.
Now that Im an adult I can see that my parents priorty with their limited finances were GOOD food, GOOD clothes, and the necessities we needed for success.
I kind of wonder how many kids that grew up on welfare are packing Fruit Rollups in their kids lunches today, how many welfare kids walk around with iPhones when lower middle class families cant afford it, etc.
It has been my observation in Canada that what seems to work with cash assistance is a cushion to break your fall, not an IV dripping just-enough to not have to work.
Where I lived you also had to prove you were applying for work to stay on it, but if you got a minimum-wage full-time job you would lose your welfare but not have as much money, so of course everybody's parents applied as often as they needed to, only went to work when they absolely needed to, and quit as soon as they possibly could to regain or keep the welfare status. And of course they modelled this to their kids.
So I do think welfare can totally short circuit personal success, Ive seen many lives reduced to manipulating a aystem instead of becoming something beneficial to others. Its sad but I believe its human nature
No matter how much assistance you provide, it cant be so much that it disincentivizes you from rejoining the work force without facing a 'penalty'.
Well, it ought to prepare them for a life dealing with corporate politics in that case.
Would you rather see the elimination of welfare or the removal of sharp cliff-like penalties for re-entering the workforce (eg, benefits that taper off as your income rises)?
Regardless of which answer, why?
That's the welfare cliff, and it can be solved while keeping the overall welfare system in place.
It just means that we need to wean off welfare between 20k/year and 40k/year, to encourage people to work at higher paying jobs instead of penalizing people who work at higher paying jobs.
Everyone knows it is a problem, but Congress is too "busy" investigating Benghazi for years rather than hammering out a law that solves the welfare cliff.
SNAP cuts off immediately once you grow above the monthly income. So if you get a raise, all of a sudden you lose all food stamp benefits.
There isn't just one welfare cliff to be solved: there are dozens. All of which need to be converted into something like the Earned Income Tax Credit (which more gradually weans people off of the Welfare as their income grows)
It's anecdote because there's no data. There's no data because who'd admit to cheating the system? There's no cause for investigation due to compartmentalization-- none of their intended social circle knows they're on welfare; any that do are also on welfare and doing the same thing.
How would I, a "technocrat" making about six figures know this? Because a couple times in my life I've had to take advantage of this safety net. And I was always irritated at how people I'd seen entering and leaving the welfare office had so much material crap that I couldn't afford when I'd see them again out in public. There were several occasions where some of these welfare recipients were running businesses and hired me to perform computer repair, then in the offices I'd here them on the phone discussing with others how to game a particular part of the system. Disheartening.
You want /data/ on this? Good luck.
Certainly there are people who "conspire" to do bad things. Sometimes the "conspiracy" is one guy. Sometimes it's a small group. The only thing I can say with absolutely certainty is that the system will be gamed. How much depends on data that you're just not going to find.
Someone who is creative and fastidious about saving, reusing and recycling would, to your eyes, look like a welfare fraud because they might superficially seem better off then you think they should.
There are enough anecdotes (I could supply a few) to suspect there is a welfare abuse problem - we just don't know the extent of it, as numbers are hard to come by (for reasons explained by the poster you criticize).
Stating the fact that _some_ people take advantage of the system does not make one a heartless bastard.
I don't think the cost of food or transit has gone up much in inflation adjusted dollars. The cost of gas and probably household energy has gone up significantly although. Overall most of the cost of living problems for the poor comes from housing.
If the answer is no, then it's stupid to complain about poor people buying an iPhone or TV. It's calling for a meaningless gesture of piety. They're not making those purchases in lieu of something that would advance their condition.
For a concrete example, it seems to me that one thing that helps people get out of poverty is having some savings. Being poor is expensive, often because large expenses compound due to financing, late fees, or even just an inability to make bulk purchases. Having a financial cushion can make life a lot cheaper. But there's no way (that I can see, anyway) that the government can provide such a cushion for someone who wants to spend it right away on irrelevant stuff.
I know, I know, now you'll say "well you're poor, what do you need a tv set for, you should sit in your dank apartment with just the road noise for entertainment," and that's where the compassion kicks in: these folks are poor, they're not animals, and if TV lets them be less miserable, it's about as cheap a way to do so as is reasonable.
But more to economic point: TVs are cheap. The TVs people complain about are maybe ~$500, and you can do very well if you shop second hand. They are a one-off capital expense which considerably improves your life, and which the lack of sale thereof utterly fails to meaningfully help you not be poor.
Because poverty is a flow problem, and it fails to be defined by whether or not one owns certain conspicuous goods. If we were talking about impoverished people who were nonetheless buying $3000 LCDs on debt every few years, then we might have something to talk about. But since concrete examples are always conspicuously absent when points of this nature are brought up, I'm content to point to the economics: selling your TV wouldn't meaningfully improve your situation, buying a TV doesn't meaningfully degrade it.
It's also worth noting that in a discussion of being unable to climb out of poverty, requiring people to dispose of all their worldly possessions before we help them is a good way to create a poverty trap.
That $500 could perhaps buy supplies to study at a local community college (tuition waivers/scholarships are available).
Poor != stupid.
Perhaps buying them books instead would work better? Community colleges are very inexpensive, there are state grants available to the poor. Why not create incentives to learn a skill/trade, perhaps a degree?
"Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime"
Regarding your second paragraph, no, I wouldn't say that. I'm not actually passing any judgment here. I don't think that buying iPhones and fancy TVs is a particularly wise choice for poor people, but I also don't really fault them for it. I'm merely giving an example of something which could help with poverty but which the government can't provide. A decent chunk of poverty comes from poor financial choices, and that's just an observation without implying any judgment towards the affected people.
Would you feel better if they do not have iphones? After all, they should know their place in the system, no?
Do you even know the actual figures? How much does a single welfare recipient get per month?
But we're in agreement on your final sentence and I do acknowledge that there are people who game the system. But the issue I feel with the welfare debate is that it's usually a discussion about reducing it (to increase incentives to work), maintaining it or expanding it, with most people leaning towards one of the first two options. When really there are genuine cases of welfare where incentives play no role, and they're being squeezed hard. The debate should be more geared towards reducing fraud, catching dishonest recipients and supporting them in their dependency, not squeezing dishonest and honest welfare recipients all the same.
I had always thought that poor people bought generic products, had old TVs, couldn't afford cable, had old flip phones, etc. But it's the exact opposite. The poor people I know on welfare/assistance have much nicer things than the middle class people I know.
I believe that the system needs to be revised so only certain products can be purchased with government funds. It would help to keep the people using these services healthier as well.
http://www.cato.org/blog/how-welfare-state-traps-poor-depend...
Note: Unlike other places, teaching is a great job in Ontario.
> was too proud
> the idea that welfare and the nanny state in general hurt more than they help
> the most respectable ways
you are placing your own morality on other peoples' choices with definitive and hostile rhetoric
you speak of pride, respect, and hurt, but have you examined these ideas for yourself?
perhaps someone on welfare is more proud that they stayed out of the military, an entity often acting as a machine of violence used to enable politicians' often dubious goals
perhaps someone on welfare thinks it is more respectable to accept aide from others than support military effort
perhaps someone on welfare thinks it is less hurtful to accept aide from others than to accept work supporting goals that often lead to direct hurt being inflicted on others
so, by your own criteria those accepting welfare are in the right as well because they are: too proud to join the military, think it is more respectable to stay out of the military, and think the military causes hurt more than welfare
i think it's dangerous to question a person's character lest you be prepared to have your own questioned
https://en.wikipedia.org/wiki/United_States_military_casualt...
I'd need to see numbers again, but it's raw numbers we should use to decide how to run an economy, not rhetoric about "helping the poor how?"
Two of the strongest arguments for UBI are: 1) we waste a lot of money administering welfare services. UBI is designed to be inexpensive to administer, which directs more money to the poor. 2) research is beginning to suggest that direct cash transfers have better long term impact per dollar spent than just about any other intervention. see, e.g. research on GiveDirectly's impact
Yes, but what about the working/low-middle class who currently mostly doesn't pay for nor receive welfare? That's money that could be allocated for the actual poor.
People keep repeating this. Go ahead and give us the actual numbers involved in your claims to back it up, since it fails even the most basic of smell tests.
I find it hard to believe we waste more money administering welfare than we will transfer to those who really don't need it under the need-blind UBI.
Under UBI we'll be giving money to many, many people who need it less than the current welfare recipients, and even UBI will require administration.
A solution (UBI) that claims to help a group (the actual needy) that is not tailored to administer to that group is unlikely to benefit them, especially since it's now going to split the fixed amount of benefits to others not in the group.
>see, e.g. research on GiveDirectly's impact
What works in Kenya does not necessarily work at every location and economy. It's not like we have not studied this question in the US for nearly a century, and recent research on foreign third world cases does not overturn a century of research on first world economic aid.
And this is not an argument for UBI. At best it would be an argument to change current welfare programs to give cash aid to those already eligible for welfare.
http://econweb.tamu.edu/common/files/workshops/PERC%20Applie...
http://www.sciencedirect.com/science/article/pii/S0304387813...
http://reliefweb.int/sites/reliefweb.int/files/resources/cfg...
Articles related to the studies:
http://www.npr.org/sections/money/2013/10/25/240590433/what-...
http://www.economist.com/news/international/21588385-giving-... (direct cash vs CCTs)
http://www.fastcoexist.com/3049642/solving-inequality/how-to...
http://www.theatlantic.com/international/archive/2015/09/wel...
"If I were an enterprising young researcher looking for an idea and experiments that will prove powerful in five years, I would try to find the stake I can drive into the heart of the cash transfer movement."
He states that giving cash is useful if the person is enterprising, such as trying to start a business, and direct cash is what is holding them back. I doubt this is most poor people, especially in the US. Otherwise, cash is not as useful as other poverty alleviation methods.
[1] http://chrisblattman.com/2013/06/27/why-cash-transfers-to-th...
Excerpts from the setup:
Groups had to submit a written proposal stating how they would use the grant for non-agricultural skills training and enterprise start-up costs. [...] The central government asked district governments to nominate 2.5 times the number of groups they could fund. [...] Successful proposals [note: randomized] received a large lump sum cash transfer [...] with no government monitoring thereafter.
Excerpts from the conclusions:
These results show that cash grants to groups of young people who develop business plans have large and persistent impacts in moving underemployed into non-agricultural jobs, increasing earnings and work hours. [...] In the end, YOP appears to have reached a group of motivated, able young people, who on average were neither exceptionally poor nor uneducated relative to their peers, in an economy with little financial depth but bouncing back from civil strife. Our conceptual framework suggests this is exactly the group to benefit from a windfall.
What do you think about people who don't qualify to join the military? What should they do? The military is a life saver for a lot of people, but not everyone can do it.
DARPA
$3 Billion / year of taxpayer funds invested in the tech industry. Plus, lots of other government agencies and procurement involved in nurturing tech.
I mean literally Siri was invented by DARPA.[1] And you can thank it for your next autonomous car.[2] Also a thing called the Internet.
So tell us again how investing in people is a corrupting influence but investing in tech companies is critical early-stage support?
You ask xacaxulu to "tell us again" something they never said in the first place.
http://object.cato.org/sites/cato.org/files/serials/files/ca...
Rich kids don't feel compelled to enlist just to make financial ends meet. Even I (single parent household, parent was a teacher), when faced with an inability to find a job when out of high school, had the grades and support to 'fall back' onto college instead. I wasn't forced to risk my life just to stay solvent.
More on point, though, I think a lot of people with this view conflate the particular implementation of welfare (itself a cause of compromise between right and left wing), with the nature of welfare itself. That is, because there is such a wide gap between "welfare, not working", and "fully self supported" that unless you can land in a job that pays well it doesn't make sense from a total utility perspective for many to find a low wage job and work that in lieu of (or alongside partial) welfare, we dismiss the idea of welfare completely. Or by example, the person on disability who is unable to work full time, but who, if they try to work above X amount of hours, ends up -losing- money, due to loss of disability benefits, as well as (obviously) losing on free time, and so ends up not working as much as they could. Due to cases like that, many people end up blaming welfare itself, rather than a flawed implementation of it.
Per another commenter, I too think a UBI would address this (as well as the basic issue that with more automation we have less need of people working, and I'd prefer someone trying to figure out what useful work they could do that would result in them getting paid for the real utility they provide, rather than just taking an unnecessary job just to make ends meet. Wage slavery in jobs that could be automated is an even more flawed form of welfare than government handouts).
Not borne out by the statistics. The average recruit comes from a family that's better educated and wealthier than the average American. The real problem with poor people using the military to lift themselves out of poverty is so many of them can't enlist as a consequence of obesity or a criminal record.
Statistics only tell you the demographics of enlisting, not -why- they're enlisting. Plenty of people enlist because of reasons other than "I have no other options available to me". My point was that "I have no other options available to me" is only ever true for poor people.
And my point was if you have no other options the military probably won't take you either.
I believe that people take for granted situations that are not... Granted. A a 5-year old who lives in Bronx and his mother sells drugs for a living, doesn't have a choice. By the time he is 15, his future is already seriously broken 99 out of 100 times. Of course there are exceptions, but it's like startups... For every team that succeeds there are 1.000 smart, interesting, extremely hard-working team that fails for a huge variety of reasons.
IMHO having a parent that will teach you how to face problems, life, etc. is more valuable than money per-se.
You had your mother who was too proud, so she fought. Now you seem to have the same stance towards difficulties. Other children do not have mother like yours.
Maybe we owe more to the society than we like to reckon[1].
[1] http://economistsview.typepad.com/economistsview/2009/10/cla...
Paul Krugman histories the development of an entire network of such entities by wealthy arch-conservatives and small-business organizations (who supported right-wing ideas because they reduce taxes and empower employers vis-a-vis employees and especially unions) in his book
"The Conscience of a Liberal":
http://www.amazon.com/gp/product/0393333132?keywords=conscie...
This network of organizations, which took decades to build, does indeed compose a "vast right-wing conspiracy" in the sense that they coordinate with and cross-reference each other to deliver right-wing political views and to promote the hiring of lobbyists and aides in Washington, D.C. who share their political views. Luckily, according to Krugman, their persuasive power is diminishing with time.
My take-away: don't equate one of these right-wing "think tanks" with a real think-tank, e.g., RAND corporation.
Why do we cut the amount of welfare people get as their income increases? Well, there's the obvious reason, that their income should supplant welfare. Is that what happens? No. Their income ends up paying less than welfare, until they earn sufficiently high amounts.
Why is that? Because the system is broken. As a cynic, I would even say that the pressure to cut it off earlier, rather than later, largely stems from conservative pressures ("if they're able to work that minimum wage job for 30 hours, then they certainly should be able to work 40! Stop their governmental handout at 30 hours!" "Okay, then we'll just work 20" "If they can work 20, they can work 30! Stop their governmental handout at 20 hours!" Etc). That is, this broken system that they're speaking out against is -exactly the broken one they caused-.
What would actually make sense? Well, tailoring off welfare payments at some percentage of earned income. Let's say 50%.
That is, someone on welfare earns $50 one month from a job, their welfare payout reduces by $25. Take into account additional costs as deductibles; things like "Driving to the job took an extra $10 from me" - okay, fine, then your welfare payout is reduced only $15. The tax payer has saved $15 (as only $35 was paid to the welfare recipient), the welfare recipient came out ahead by $25 ($50 earned + ($25 welfare + $10 gas refund/deductible) - $10 gas cost; they walk away with $75, $50 of which they earned), -and- they're working toward rejoining the workforce. Welfare effectively stops once they've reached wages of 2x welfare + cost of incidentals, and until they reach that point, every extra dollar they earn is a net gain to them; there is no valley where their purchasing power actually drops because they chose to work.
While we're at it, if we're really concerned about people working, let's also fund more job training centers, more disability rehab and job placement centers, etc.
Why don't we do all of that? Because there is no political pressure to do that; conservatives would rather completely dismantle welfare, and liberals either aren't that concerned by the status quo, or are tired of trying to work with conservatives over the issue (and so it's become a shouting match where both parties have drawn lines in the sand and refused to compromise).
So, these 'evil networks' of small-business owners want less taxes to grow their business by making more money and employing more people?
I can't see how an employed and wealthy population could be a bad thing.
Lower taxes and higher owner incomes aren't 1:1 equatable to job creation or greater collective wealth.
Data: http://www.usnews.com/opinion/blogs/economic-intelligence/20...
"I can't see how an employed and wealthy population could be a bad thing."
It isn't. But what we're facing is a _small_ employed and extremely wealthy fraction of the population together with a _huge_ low-paid supermajority of the population.
Small business owners want fewer and less taxes, no unions, lower wages, lower healthcare costs, fewer worker protections, etc. Left to themselves they would drive wages to zero. Small businesses join others to support certain non-profits that lobby in Washington, DC on their behalf. Nothing illegal, but one must ask such questions as: "Where are the lobbyists for low-paid workers?" or "Who will support the workers' families after the workers die from inhaling toxic substances day after day?" These are questions in which the small businessman's lobbyist has no interest.
In one chapter "Conscience of a Liberal" Krugman histories the development of this relatively new conservative and wealthy network of individuals and not-for-profit corporations. Read/skim the book for details:
http://www.amazon.com/Conscience-Liberal-Paul-Krugman/dp/039...
One of Krugman's points is that the middle class is disappearing in the USA: wealth distribution now mirrors that which existed in the so-called "Gilded Age" of the Rockefellers, Carnegie et al (late 19th-early 20th century): a small percentage of extremely rich people and a large percentage of poor, with a very small middle class.
FDR's New Deal, by increasing taxes radically on the wealthy (both inheritance and income taxes) and increasing wages, brought a strong middle-class into existence. That middle class has been the engine of the US economy but is dwindling. The solution is to restore taxes and support the worker's causes.
Gilded Age:
https://en.wikipedia.org/wiki/Gilded_Age
"Why We’re in a New Gilded Age" by Paul Krugman:
http://www.nybooks.com/articles/archives/2014/may/08/thomas-...
The Rich, the Right, and the Facts: Deconstructing the Income Distribution
http://prospect.org/article/rich-right-and-facts-deconstruct...
Unfortunately, taking care of the less fortunate gets rolled into these arguments, only sometimes on purpose. It's rather difficult to individually consider the human benefit to welfare programs when congressmen/women with ties to defense-industry districts can just as easily make an argument for the jobs and wages paid to the working class because of those programs.
I think this is why (very much conjecture-ing here) there seems to be a groundswell of support for the idea of guaranteed income. If you can solve some of the individual woes people have collectively by giving everyone a basic income, it's easier to argue for and against government spending for individual programs, because far fewer will be able to have such a socially destructive effect if they are cancelled.
Just a thought.
Also, of all people, you picked Krugman to form your opinion about "vast right-wing conspiracy"? Really?
Thank you for that grammar tip: I was indeed incorrect to use quotes there. I'm still learning!
Corruption is not about buying alcohol and tobacco or avoiding work, it is about becoming dependent on nanny estate to a point of:
a) blindly supporting the populist politicians even if they are corrupt.
b) ignoring the consequences of unsustainable public spending like debt and inflation. (Again, while corrupt bankers and bureaucrats become richer creating a greater inequality).
He's right, but the ideology is social democracy, not free market capitalism
DARPA's budget is about $3B this year alone. You can thank Uncle Sam for autonomous vehicles, Siri and the Internet, to pick just three.
So if investing taxes in people isn't "free market capitalism" then neither is the tech industry.
Compared to $10 billion in R&D for Microsoft and Intel and $8 billion for Google: http://fortune.com/2014/11/17/top-10-research-development/
For example, without the government leaning heavily on integrated circuits in the 60s, would Microsoft and Google even exist today?
DARPA is government spending towards national security, not 'investing taxes in people'.
The article might as well be titled: "The Myth That Those in Lower Socioeconomic Classes Respond to Incentives".
Maybe it's true, but I think a higher bar has to be set to disprove a fundamantal building block of modern economics.
I just hope they don't go too American here, because I have not been employed in the last 3 years.
Money in the financial markets is evil!
Money in health care taints decision making!
But money going to poor people? Nah, there are no downsides at all.
If money encourages bad behavior and poor decision making, then it shouldn't apply in all of these situations?
Or alternatively, maybe it's not the money at all but the people themselves?
Something similar would be interesting to know (but I guess, will never be researched):
How corrupting is the influence of state-money poured into many industries of western nations, because those states want to support their own big industries (like military industry, energy, ...) and are lobbied into doing so ... the result: Money goes on and on into the same corporations, but small companies get nothing.
I could not disagree more with the title, based on my own observations. I mean, aren't most of the people in this country poor because of mental illness or addiction?
No! They're poor because their parents were poor or because they grew up in a poor neighbourhood and lacked access to a proper education.
This article highlights one egregious myth but far more pernicious is the one you just highlighted: that poverty is a personal or moral failing rather than a lack of opportunity.
It's really simple: people are poor because they don't have enough money. Don't let yourself fall into the Just-World Fallacy.
I think it's easier to defend the claim that the kids lacked guidance and support to take advantage of the education provided for them.
In the US a single mom who homeschools, with only a high school education, will have her child place in the top 70% of public school kids.
Parental involvement is so important, it's the only factor that matters.
Education funding in the US is wildly uneven. Spend some time visiting inner-city schools. They are not even remotely "well-funded".
Property-tax driven school funding formulas ensure that richer areas have much, much better funded schools than poor areas.
The wealthy suburb of DC where I grew up spends $13,500 per student per year. That's a lot less than DC or Baltimore or Chicago, all of which have 70-85% low-income students, and only moderately more than Philadelphia, which is also almost all "inner city" schools.
Also, are you certain that wealthy suburbs are spending that little? I know some rich families in NYC who are sending their kids in high school to schools that ask above $50k. It's a straight pipeline to Ivy league, and from what I understand there are good reasons this high school asks $50k -- they have top of the line 3d printers, souped up computers, etc.
Teaching students that live in wealthy suburbs.
there are good reasons this high school asks $50k -- they have top of the line 3d printers, souped up computers, etc.
Those things probably account for $5k of value, with the other $45k being the ability to list the school on the kid's Ivy league application.
Yes, teachers are better in my town - but the most important difference are the role models. IN my town most families are professional couples, typically doctors, executives, etc. Kids are expected to not only go to college but good college and then continue on to graduate school, to at least match their parents' status. None of that, sadly, is at work in inner city families. It is a difficult problem and not something that money alone will fix.
That guidance is a critical part of a "good" education. Unfortunately, we leave it up to parents and don't have a way to teach them how to raise a successful kid.
My brother went to public high school in Washington DC graduating in 2008. His school had tracking, meaning you could only take classes available in your "track". A student was in either all honors/advanced classes or in all regular classes but could not take a mix of both.
The regular track was exclusively black, while the honors track was for white and/or rich students, regardless of actual academic performance!
Unless a non-white student is both high achieving and has parents who are able to navigate the bureaucratic nightmare that is the DC public schools (it was a mess even for upper-middle class white students like my brother) they don't really have an opportunity for anything other than a poor education.
[1] https://www.washingtonpost.com/local/education/graduation-ra...
So no, if you're poor in the US it's not just because you've got a mental illness, that's a very wrong view of the world. Poverty is a big issue in the US and it is distinct from many (not all) developed economies for having a lot of working poverty, i.e. people who are not ill, do not suffer substance abuse, who aren't homeless and who have a job (often multiple) and yet are poor. That is very much an American phenomenon, no other developed country has so many normal people who have jobs and yet are poor and who struggle to leave their children a better life than they enjoyed.
It also has the typical characteristics of demagoguery.
http://www.democracyjournal.org/32/the-voluntarism-fantasy.p...
http://articles.latimes.com/2014/mar/30/business/la-fi-hiltz...
Yes they are. They are in a way pre-brainwashed by their leaders so using just the right rhetoric you can get them to act as a block and get them to do your bidding. They also have a nice property that they congregate in large megachurches, you really just have to convince the pastor to preach your agenda, and you instantly got thousands of voters.
Here is an excerpt from the link:
"President Bush made his famous comment that his favorite political philosopher was Jesus Christ because he changes your heart, I was a little bit surprised by that. Surprised, because presidential candidates usually do not make specific sectarian references to their beliefs. …"
Note, Bush Jr wasn't the only one who realized and exploited the potential. The AIPAC (Pro Israel Lobby) is also using Evangelicals.
http://www.aipac.org/connect/communities/yourchurch
^ The strategy is pretty clear. Identify pastors of megachurges and cater to them.
Here is an excerpt from AIPAC's mission page:
"Pastors and other significant community leaders have amplified their voices by inviting elected officials to speak about the U.S.-Israel relationship in church, organizing parlor meetings with members of Congress to lobby them on pro-Israel legislation and participating in AIPAC’s annual Policy Conference."
I have seen the effect first hand, it was very effective. An elderly relative was a member in one of those churches. Maybe 20-15 years ago they couldn't show you where Middle East was on the map. And all of the sudden within 5 years they somehow started talking about supporting the state Isreal and their house filled with trinkets built by settlers as "thank you"s from thousands in donations she sent over there and so on. It was a bit baffling, at first. Then I watched one the sermons by her pastor once (she had a recording) and it become clear what's happening.
> they can sometimes be deceived, blinded by bias or just not put enough thought into their beliefs
Sure but just more so than others. Looking back it seems Bush Jr's campaign manager knew who to target and what to do. Maybe he was stupid, but people working him weren't. Didn't mean they couldn't have some kind of tea party following or something along those lines. But why work harder when you don't have to...
For example, not all evangelicals are young earthers. Also not all, and probably not even most, attend the type of megachurch you keep talking about.
"Just say a few words about Jesus and they'll follow" is another straw man. There are plenty of Christians who wouldn't identify as evangelical who also will try to use the words of Jesus to their advantage. Even Bernie Sanders tried that tactic recently. I somehow doubt he's going to get a wide swath of evangelical support.
Belief in God is not the same thing as giving up rationality; which you seem to indicate. That's a common bias a lot of people have.
I think your post says more about you than the large group of people you want to stereotype and marginalize.
It was just an example.
> There are plenty of Christians who wouldn't identify as evangelical who also will try to use the words of Jesus to their advantage
Agreed. Used in the context of elections it is clear what the purpose was.
> Belief in God is not the same thing as giving up rationality; which you seem to indicate. That's a common bias a lot of people have.
It is one of the indicators. Most of all it is an indicator that they will probably listen and follow whatever the pastor of the megachurch suggests.
At the end of the day it doesn't matter if I think they are rational or not, but that those in power who need to mobilize their vote need to think. Think of it as getting the lowest bang for your campaign buck. Who do you appeal to? They are a nice group, and it clearly worked!
Obama did the same thing, so I am not really playing for the Democrat's team or anything, liberals can be easily manipulated. Obama campaign for Hope And Change for example was awarded AdAge award.
http://adage.com/article/moy-2008/obama-wins-ad-age-s-market...
That's an award given by a marketing agency for best marketing campaigns. Usually given to Apple, Nike, Coke and so on. Well in 2008 Obama got the prize.
> I think your post says more about you than the large group of people you want to stereotype and marginalize.
The fact that that group was used and used by a large lobbying group and that Bush's campaign kind of support my idea though. It is not much of a hypothetical.
Even the most conservative sources and Evangelicals themselves talk about being betrayed and used by Bush. I don't know what other evidence we'd need:
http://www.newrepublic.com/article/121384/jeb-bush-not-favor...
After all the promises and talks about Jesus they are wondering what happens to outlawing abortions, why weren't same sex marriages stopped and so on. That is what they were waiting for based on promises. Instead it was all about handouts to the military industrial complex.
As for betrayal...yes, of course. That explains a lot (not all) of what is going on in the Republican primaries this year. Unfortunately, politics nearly always involves compromise to achieve common ground. Also unfortunately, evangelicals generally don't have a belief system that adequately addresses politics in the setting of a democracy or republic.
Here's an interesting thought expirement...if 10 years down the road the African-American vote left the Democratic party...would one go around saying they had been "easily brain-washed"? Such statements would probably be challenged (and should be) just as I've challenged it here.
So no agenda there then.
What is interesting about the results (which include peer reviewed studies - the one in mentioned by the NYT doesn't seem to be peer reviewed) suggesting that cash handouts are more efficient than than more complicated welfare programs is that the cash handouts would eliminate the middle man and maximise the bang for buck of helping people in poverty. I.E. minimising the size of the charity or the government bureaucracy.
All else is largely pencil-pushing. If you want to shape economic policy that is sustainable & impactful, it has to make a large allowance for how people feel about welfare.
Let me elaborate.
You can make well-reasoned arguments and appeal to the sound nature of people and hope that they will understand & internalize your case for welfare. You can back it up with scores of studies that have data stretching multiple decades. You can provide touching anecdotes that tug at the heart strings. You can do all that and yet people will not have a change of heart for more than a fleeting moment.
I will give you an account of how workaday people - sensible people - really think about welfare and handouts in general.
For this, I will stick to America & Americans although this could easily be extrapolated to other parts of the world.
I strongly believe that most non-welfare dependent ( & even most welfare-resenting ) Americans are like me. For this purpose let me also exclude the portion of the population that are impetuously dismissive of the "freeloaders" and "deadbeats". Including them would not be helpful here.
Having said that I think most sensible Americans are fine with some form of "public assistance" ( lump into this whatever forms of unearned perks, benefits, allowances, tax breaks, subsidies etc that the government lavishes on the low income or even some middle income people ) for those people who have fallen on hard times.
Most sensible Americans are also fine with those same forms of "public assistance" being bestowed upon those same sections of the public for even extended durations of their lifetimes. I think sensible Americans get that the ill effects of an impoverished childhood & other social curses can stretch for the better part of a generation, if not more.
What most sensible Americans won't stand for is when those benefits are still lavished on those sections of the society even when those previously disenfranchised people are now, well, no longer beggared.
Take the case of San Francisco.
It is not uncommon to find yourself dining at a restaurant where your fellow diners constitute a good chunk of these previously beggared classes.
You think ,"good for them."
It is not uncommon to find them shopping at upmarket home furnishing stores.
You think,"hmm...okay..they share my taste in rugs."
It is also not uncommon to find them gushingly sharing photos & videos of their fantastic vacations to Iceland or Namibia.
You think, "I wish I could take a month away from work. Well, perhaps next year."
It is not uncommon to find your kids struggle to stuff their applications to the same top tier colleges as these previously beggared classes who are suddenly competing with your flock, to be one among the lucky 6% or 7% that constitute the incoming class at a Yale, Columbia or Harvard.
Now you think, "screw all these welfare programs for deadbeats and moochers."
That's what it all boils down to.
Everyone's fine with handouts until it starts to get too close to home.
Your entitlements end where my feelings of hurt begin.
We can differ on the degree & scale but that's the general sentiment of most sensible workaday Americans.
Have you directly stopped and talked to those people buying rugs? Or at a restaurant? Are you sure they are not just hipster kids wearing second-hand clothes but who might work at Google or have a rich daddy with a trust fund?. Maybe you did, but I doubt it.
So a lot of opinions and "feels" people have about welfare is what they are _told_ to have. By their parents, teacher, media, friends, TV, magazines, movies, etc.
I lived with a conservative family for many years, and I was of firm opionion that welfare queens are everywhere wasting pulblic's money and that's where all out taxes were. It was a very sincere and string opionion. But it was put in not head not my socializing with "welfare queens" but by White Middle Class Americans, who also didn't really socialize much with welfare recipients, but instead listened to Fox News all day every day.
So to make story short, it is about the "feels" but the feels are often easily updated/manipulated/used by whomever you let control your thought processes.
This stuck out for me.
I got the impression that she has mixed feelings about assistance programs but recognises their importance whilst wanting them to be applied fairly.
Yeah I agree with that point they made. I just didn't explicitly say it. I should have probably.
What I focused on was the idea that it often boils down to a feeling. And I agree with that too, but I wanted to point that it is important how people arrive at those feelings.
GP showed some example, but I didn't find those convincing. I think a lot of what people believe and think gets acquired and filtered through 3rd party sources (media, friends, parents, teacher etc). And even though a lot of people have strong feelings about welfare, they might not have gotten those from their own experiences.
And then of course there are whole industries (marketing, pr, propaganda) whose goal is manage feeling, perceptions and ideas in others.
Anyway, to recap I didn't disagree with their main idea, just wanted to expand on one part of it.
Let those people be thankful they have a job, instead of complaining about the one who don't. If they are not satisfied, let them ask for a raise or quit and join people on welfare.
Your feelings of "hurt" makes me chuckle. Handouts have the merits of inhibiting crime and violence. You do not want to have so many people on the street without anything to put a foot on, ready to organize for riots and reaping chaos.
Either the ideas/points are valid, backed-up by evidence, etc. Or they're not.
1. I did well therefore why can't everyone be like me?
This is rather tired argument that I have seen dismissed 3 times last week on HN alone. Refuting this is a waste of everyone's time hence I ignored it.
2. Here is a think tank publishing sponsored pseudo-science with a political agenda.
This is what I commented on. In science, especially in controversial fields, the source of funding and acknowledgement of conflicting interests is almost as important as the findings for any given study. Not mentioning funding or conflicting interest is a viable grounds for withdrawal of peer reviewed publication.
Your point: > Either the ideas/points are valid, backed-up by evidence, etc. Or they're not.
Refer to my comment on the OP's point 2. To expand. Evidence can be selectively gathered and selectively presented. This is what peer review attempts to mitigate. A publication funded by a libertarian think-tank would (like a publication by a socialist think tank) face severe questions during peer review to try to determine whether there is bias. Neither TFA nor the stuff refereed to by the OP are (yet) citable research sources.
From wikipedia:
> Censorship is the suppression of speech, public communication or other information which may be considered objectionable, harmful, sensitive, politically incorrect or inconvenient as determined by governments, media outlets, authorities or other groups or institutions.
So no I used the word with it's correct meaning.
I'm not sure I understand. Did you censor this because of my comment or because of the thread?
The bigger issue is shilling...
> The bigger issue is shilling
Based on the data I see, I'm pretty sure that's false. But any user with specific concerns about astroturfing or shilling should email hn@ycombinator.com with links. When we get an email like that we look for evidence, and when we find evidence we act on it.
Well it was. I don't understand why you censored my OP. I clarified my point about the GP before you censored the thread https://news.ycombinator.com/item?id=10447015. I've further clarified post-censorship https://news.ycombinator.com/item?id=10453441.
> Based on the data I see, I'm pretty sure that's false. But any user with specific concerns about astroturfing or shilling should email hn@ycombinator.com with links. When we get an email like that we look for evidence, and when we find evidence we act on it.
This is in effect a non-policy. This is pseudonymous forum. Users don't have any evidence other than heuristics (i.e. what the poster actually writes). Given that you don't accept that as evidence they have no possibility to raise serious questions unless there is blaringly obvious mistake on the shill's part.
EDIT Would the downvoter like to pitch in and actually contribute?
That's a high word count on "censor", but I'm not sure what else there is to say.
> This is in effect a non-policy.
It sounds like you've misunderstood. Anyone with suspicions about astroturfing is welcome to email us; it's we who have the data and will look for evidence. What's not allowed is groundless accusation of other users in HN comments.