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What kind of president will Obama be?
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From
20/01/2009 10:18:05
 
 
To
20/01/2009 09:54:36
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Forum:
Politics
Category:
Other
Miscellaneous
Thread ID:
01374786
Message ID:
01375458
Views:
22
>>Wouldn't they look for a job without uncle Sam telling them to? It's the "I just don't want to" crowd that I'm concerned about.
>
>I'd love to see some evidence that what you call the "I just don't want to" crowd is of any significant size. Got any citations for that? (Real evidence, not opinion pieces.)
>
>Tamar

Update: I also found this:

http://www.urban.org/toolkit/issues/welfarereform.cfm

(It's very interesting reading)

There is an interesting perspective on the overall ability of welfare to help the poor (also some interesting stats there):

http://www.econlib.org/library/Enc/Welfare.html

Does Welfare Help the Poor?
David Henderson

Economists believe that people tend to make decisions that benefit themselves, so the answer to the above question seems obvious. If welfare did not help the poor, then why would so many of them go on welfare? This self-interest among the poor could also explain a phenomenon noted by those who study welfare, namely that only about one-half to two-thirds of those who qualify for welfare programs are enrolled in them. Presumably, the others have decided that it is in their self-interest to refuse the money and keep the government from meddling in their lives.

So, while it seems clear that welfare helps the poor who accept welfare, that does not mean that welfare helps the poor generally. Two groups of poor people, not counted in the welfare statistics, are hurt by welfare. The first group consists of the future poor. Economists know that welfare is a disincentive to work, and, therefore, that its existence reduces an economy’s output. If even some of this output would have been used for research and development, and if this forgone R&D would have increased growth, then welfare hurts growth by reducing R&D. If the annual growth rate of GDP in the United States had been just one percentage point lower between 1885 and 2005, then the United States today would be no richer than Mexico. The main thing that helps all poor people in the long run is economic growth. Even though the 1920s are thought of as a decade of prosperity, by today’s standards almost all Americans in the 1920s were poor. Economic growth made almost all Americans richer than their counterparts of the 1920s. A reduction in economic growth, even a slight one, if compounded, causes more future poverty than would otherwise have been the case.

The second group hurt by U.S. welfare is poor foreigners. The welfare state acts as a magnet for poor immigrants to the United States. Because of this, there are various domestic pressures to limit immigration. Without the welfare state, the number of immigrants would likely rise substantially, meaning that many previously poor foreigners would become much richer. The welfare state limits this improvement.

Based on Tyler Cowen, “Does the Welfare State Help the Poor?” Social Philosophy and Policy 19, no.1 (2002) pp. 36–54.

.·*´¨)
.·`TCH
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"When the debate is lost, slander becomes the tool of the loser." - Socrates
Vita contingit, Vive cum eo. (Life Happens, Live With it.)
"Life is not measured by the number of breaths we take, but by the moments that take our breath away." -- author unknown
"De omnibus dubitandum"
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