Not the Nobel Prize for Statistics
17 minutes ago
Defenders of government welfare programs not only cannot conceive of the possibility that government programs actually harm rather than help the people they target; they cannot conceive of the possibility that anyone else could conceive of the possibility. Those of us who sincerely believe that such programs are harmful are baffled at what we perceive to be stubborn resistance to the facts of the matter.
What unemployed and impoverished people really need is not government handouts, but access to, and the capacity and inducement to engage, the market economy—as Pope John Paul II put it, to “enter the circle of exchange.” Government policy should be encouraging companies to hire and potential employees to be hired. Yet, to take but one example of recent counter productivity, economists have shown that extending unemployment benefits beyond a certain length of time correlates with higher unemployment rates. If a safety net becomes too comfortable, people are inclined to remain in it. Welfare program advocates deny this vehemently—everyone wants to work, they say; they just need the chance—but statistical evidence and a realistic understanding of human nature contradict them. It could be that the perfect job is not available; maybe finding work means picking up and moving, or taking a cut in pay, or training to acquire a new skill. People faced with these situations deserve our compassion and assistance. But if we minimize the incentive to do what is necessary to find employment, we do neither the out-of-work individual nor the overall economy any favors.
A report obtained under the Official Information Act shows 14 people, including three children, were listed at one household in Papatoetoe. Collectively it was getting over $4000 a week net in benefit payments - adding up to about $224,000 a year.
She [Paula Bennett]had asked for the breakdown of benefit payments per household as part of work a panel of ministers is doing on welfare reforms following the Welfare Working Group report.