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Research Finds Welfare Pays More Than Minimum Wage Jobs

Research Finds Welfare Pays More Than Minimum Wage Jobs

Would it pay more for you to be on welfare rather than work a minimum wage job? In many cases, the answer is yes according to a new study from the Cato Institute.

“They would receive more than a minimum wage job would pay in 35 states. And in 13 states they’d receive more than in a $15 an hour job,” Michael Tanner of the Cato Institute told KTRH.

Tanner has put out a report examining the benefits of welfare vs. work. So how does Texas fare? Are we having the same problem that many other states are having?

“Texas has one of the lower benefit packages in the nation. In fact Texas ranks 47th out of the 50 states plus the District of Columbia,” tanner explained.

Why is Texas doing so well?

“The state is keeping benefit packages low. Texas isn’t providing public housing benefits to most recipients,” Tanner stated.

So what should other states do? Tanner says following Texas' lead is a good start.

“The idea of capping total benefits is something that should be considered. Britain just put a cap on its benefits. We’re starting to fall behind the British when it comes to welfare reform. I think that means we need to rethink things,” Tanner explained.

 

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