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Arnold writes: "I think that a bureaucracy gets established when a Bad Thing happens to an organization. The response is to set up the Department To Make Sure That Bad Thing Never Happens Again... I think that this explains why DEI bureaucracies... are so prevalent." Arnold goes on to note that it is not in the interest of the DEI bureaucracy to come up with a solution.

The situation is worse than that. They are set up to address a non-existent problem and so they have to create the appearance of one. They are pure grift operating under a specious moral cover.

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Arnold quotes Cochrane: "from zero to about sixty thousand dollars of income, if you earn an extra dollar, you lose a dollar of benefits. Fix the incentives, and more people will get ahead in life." Is it even possible to fix this? Benefits without a cutoff become hugely expensive mass entitlements. Even a phase-out has the same disincentive effect. And in the bigger picture, the very large non-participation in the labor force suggests benefits may simply be too large, especially given the lack of work requirements to qualify. Earned income "tax credit," really a hand out since these people already don't owe income tax, is one approach, but not politically popular as anything other than an add-on benefit.

This unfortunate situation is not likely the result of inadvertence, but more likely deliberate. The more people kept in dependency the better it is for the bureaucracy and the political class. This is also likely a prime reason for open borders. The more people receiving benefits, the more bureaucrat administrators are needed; and the dependent are reliable votes for politicians promising to maintain and expand benefits. After the Clinton reforms which required showing up for work or training, welfare rolls dropped enormously, leading politicians to reverse these requirements as soon as they could.

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