Saturday, December 09, 2006

The Damage That Social Programs Do

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My direct experience with social programs consists of collecting unemployment 20 years ago for about three months. As short a time as this was, it showed me some of the problems that are inherent in programs which are supposed to help people. Basically, it made me not want to work.

The way in which unemployment benefits were paid at the time allowed for a claimant to make up to half of his or her benefit rate without reducing the benefit. In other words, since I was collecting $140 per week, I could make up to $70 in income without a reduction in my unemployment check. I worked one day per week, which netted me about $65, so I was getting the whole amount.

Then an offer for some work came in. I could work for another day per week and make about $50. The problem was that if I took the job, my income would pass that 50% mark in relation to my unemployment benefit. When that happens, the benefit is reduced by half. In other words, if I made $50 more, I would lose $70. In effect I would actually have to pay to work...

Continued here:
http://www.999ideas.com/social-programs.html

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