9/22/15 Welfare States

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Generous welfare benefits provide disincentives for some people to work. Some can live a comfortable lifestyle on the public dole.

Many European nations offer generous welfare benefits.

Analysts at the CATO Institute looked at the data.  Here’s what they found.

In 11 European Union countries, welfare benefits exceeded half of the net income for someone earning the average wage.  In Austria, Croatia and Denmark, anyone leaving welfare wouldn’t gain any additional income from working.

In Denmark, the E.U. nation with the most generous benefits, a single mother of two would be given nearly $39,000 a year. Benefits so generous they actually discourage many from seeking a job.

What was once considered a safety net, has become a way of life.

This is among the reasons why refugees want to settle in Europe.  And why many working people don’t want them.

This isn’t limited just to Europe.  As CATO points out, in the U.S. some people shun work in favor of welfare.

Factor-in the 50 states and the District of Columbia into the European comparisons and U.S. states claim 8 of the 10 most generous jurisdictions.  Hawaii, D.C., Massachusetts and California take 4 of the 5 top spots.  This is before free medical care from Medicaid is added-in.

U.S. welfare reform from the 1990s has been replaced with generous taxpayer-financed benefits.  This may account for why nearly 100 million people are no longer in the U.S. workforce [here, here].

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