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forumposter123@protonmail.com's avatar

Cochran notes the major problem with his numbers in the text, but then moves on.

A lot of what we give “the poor” is in kind services like medical care, education, housing subsidies, etc. it’s not clear how such subsidies should be valued, but a good case can be made that their value to the recipient is far below cost.

Meanwhile, means testing on these benefits means it’s effectively 100% tax on work.

Let’s imagine a family in a townhouse in Baltimore. They live in a neighborhood with 1/10th the crime and dysfunction. Marriage rates are 5x higher. They work in a factory and they can’t buy as much stuff but if they work an extra shift they keep the money. And anyway tvs we’re going to get cheaper over the last 50 years no matter what. If they have a smart kid he can go to college and afford tuition on a part time job with no debt.

Was that person worse off than someone that sits on a couch all day in front of a big flat screen, probably divorced, listening to gunshots at night, but qualifying for Medicaid to treat their self imposed diabetes?

I grew up in an 800 sqft house. I remember when we could afford an air conditioner. But it was a house in a great neighborhood with a good school and my dad had a good union job that looked out for him even when he got sick.

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Lorenzo Warby's avatar

Thank you very much for the recommendation.

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