Work requirement for social benefits

NPR Business Story of the Day – Medicaid has become a key component in negotiations over debt ceiling. Actually, debt and deficit are not the point of contention. Both sides agreed that we need to reduce deficit and debt but differ on how to achieve it. The Democrats want to increase revenue from closing tax loopholes or taxing the rich more. The Republicans propose to cut social welfare programs they branded as “entitlement”. In politics, communication is the key. Love how they name all the Bills to pass the congress. Sometimes, the name is the exact opposite of the content of the Bill. LOL.

In Canada, we have a social assistance program called “Ontario Works” 😊 Similar idea. No one gets a free lunch. All have to work unless one can’t due to disability. Therefore, there is a sister program called ODSP – Ontario Disability Support Program. Very logical and comprehensive. Covered all the grounds. LOL.

Data shows no increase on employment rate from work requirement. Marketplace podcast “The uncertain hours.” Reports that it only increases administrative cost to check whether people are looking for work or working. It says hat millions of the money was paid to private companies who do those administrative work that doesn’t help people in need.

This is at the centre of the fight between the progressive and the conservative.  It is closely related to the political doctrine of the opposing sides on this one fundamental question – why some people are poor. Are their own faults? Do they deserve our help? Do we encourage people to exploit welfare programs and waste taxpayers’ money? Is this fair to the hard-working people to give their hard-earn money to lazy people?

As you can see, it is very politically and emotionally charged? It is definitely not a good idea to discuss this over dinner table with friends or families. 😊 The progressive might deem the conservative selfish and lacking of compassion. The conservative would see the progressive as unfair and wasteful. Now this is the heart of debt ceiling negotiations. Both sides consider themselves righteous and just. The gap is so big and divisive.

As investors, we might be too numb and tired about this. Just be very careful of panic sell. Keep in mind of the investment horizon. The market will recover before we need the money. Diversify, diversify, diversify.

Published by Worthfy

Financial literacy and counselling

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