Saturday, June 25, 2016

RE: “Why I Was Wrong About Welfare Reform,” June 18, 2016

To the Editor:

Reading Mr. Kristof’s latest op-ed, I found myself disappointed and frustrated. As a 17 year-old high
school student I opposed the Personal Responsibility and Work Opportunity Act (PRWORA or “welfare reform”) when it was debated in Congress, and was sickened when President Clinton declared “ending welfare as we know it.” How, then, could someone as smart and compassionate as Mr. Kristof have supported this law?

Mr. Kristof provides the answer: without a requirement to work, the poor would simply take advantage of the free check. To make his point he quotes Stephanie Johnson, a 35-year-old woman, “raising four children through odd jobs,” who says: “If it was readily available, I’d abuse it; I’d say they’re giving me free money.”

Mr. Kristof’s cruel rhetoric betrays a perverse logic: the victims of poverty and oppression are to blame for their condition: “If only they would pull up their pants…” “If only they had a ‘middle-class’ work ethic…” “If only she hadn’t worn that skirt…”

This faulty logic is refuted by basic arithmetic. Employers in the US simply do not provide enough good-paying jobs for every able-bodied adult. While economists call our current 4.9% unemployment rate “full employment,” that too is a lie, for it has only been achieved with the lowest labor force participation rate since 1977 and the highest incarceration rates in the world. (The jailed to not count as unemployed.) 

And of the jobs created since the Great Recession, according to the National Employment LawProject, 44% pay between $9.38 and $13.33 an hour: jobs that typically come with no benefits, little stability or inherent meaning, nor a connection to a career path that might lead to meaningful employment. Only 30% of the jobs created since the end of the recession can be considered “higher wage.”

The truth is, if more of the poor and the discouraged started to look for jobs, unemployment would rise and wages would fall. 

Rather than focus on the poor, policymakers should set their sights on employers. The goal should not be to incentivize working, but to incentivize the creation of more high-paying, meaningful work.

Something like a universal, guaranteed minimum income would do the trick. Provide each adult in the United States (rich or poor) with a level of income sufficient to meet their basic needs, and no one would be coerced into accepting low-wage, demeaning and dead-end work. Instead, employers would be forced to compete for peoples’ labor by paying high wages, creating better career-paths and making work more intrinsically motivating.

In the meantime, people like Stephanie Johnson should not feel ashamed. Given the choice between struggling to get by on odd jobs or free money, I would take the free money.
Sincerely,

Matt Hancock

Princeton, NJ

2 comments:

Unknown said...

Yes. But...

Can one grasp the number of people put out of work because of an annual guaranteed minimum wage?

I can't. Bu I do know there'd be lots of low level clerks, social work-types and all kinds of administrators walking the streets, jobless, because the bureaucracy supporting the 'old system' was replaced by the guaranteed income for all.

Not that we shouldn't adopt this guarantee, we just had better prepare for social and economic consequences triggered by this appropriate social/economic policy change.

And maybe, just maybe the meek might yet inherit the earth because they'll have some money... Finally.

Unknown said...

Interesting point, though it's unclear to me how much job loss would be associated with this, since -- at least in theory -- an employer could lower how much they're paying their employees by an amount equal to what the employee is receiving as a guaranteed wage.

But if job-loss did accompany this policy change, maybe many of us wouldn't mind that so much, especially if we're losing a job that is demeaning, or simply uninteresting. Maybe the extra time -- time for hobbies, for running for school board, for spending with family -- would make up for the loss?