Posts tagged with: Cato

It sounds like a late-night tv scam: make tens of thousands of dollars and don’t work at all! And yet, it turns out that the U.S. government is offering just such a deal. For instance, a welfare recipient in the state of Connecticut can make up to uncle sam's money$38,761, according to a new Cato Institute study. In Hawaii, the figure is $49,175, over 200 percent above the Federal Poverty Level. As The Heritage Foundation has pointed out, nearly half of Americans pay no income tax at this point in history.

Michael Tanner and Charles Hughes have written “Work versus Welfare Trade-off 2013: An Analysis of the Total Level of Welfare Benefits by State.” Tanner has this to say about paying people not to work:

To be clear: There is no evidence that people on welfare are lazy. Indeed, surveys of them consistently show their desire for a job. But they’re also not stupid. If you pay them more not to work than they can earn by working, many will choose not to work.

While this makes sense for them in the short term, it may actually hurt them over the long term. One of the most important steps toward avoiding or getting out of poverty is a job.Only 2.6 percent of full-time workers are poor, vs. 23.9 percent of adults who don’t work. And, while many anti-poverty activists decry low-wage jobs, even starting at a minimum-wage job can be a springboard out of poverty.

Thus, by providing such generous welfare payments, we may actually not be helping recipients.

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In the world of celebrity-do-gooders, Bono has earned the reputation of being more than a mouthpiece. Over two decades, the musician has created the ONE campaign, worked with Amnesty International, collaborated on the Band Aid bono clintonconcerts, and became increasingly involved in poverty-stricken Africa. He worked for years to promote debt forgiveness for African nations, while working for increased foreign aid.

And now? Bono says capitalism is the answer. Rudy Carrasco writes at Prism Magazine:

…Marian Tupy, who writes at the Cato Institute blog, ‘For years, Bono has been something of a pain, banging on about the need for billions of dollars in Western foreign aid…’

The world has taken notice that Bono has adjusted his economic tune. In a November 2012 speech at Georgetown University, Bono said, ‘Aid is just a stopgap. Commerce [and] entrepreneurial capitalism take more people out of poverty than aid.’ One month earlier Bono had shared at a tech conference in Ireland that he was humbled to realize the importance of capitalism and entrepreneurship in philanthropy.

These recent declarations, however, have been brewing for a few years. A 2010 New York Times op-ed by Bono notes how ‘lefty campaigners’ and business elites are learning to collaborate: “The energy of these opposing groups is coming together [because both] see poor governance as the biggest obstacle they face.”

Bono’s affirmation—that business takes more people out of poverty than aid—should be a rallying cry for a new generation.

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During Tuesday’s State of the Union, President Obama called for an increase in preschool education in order to prepare workers in the future:

…none of it will matter unless we also equip our citizens with the skills and training to fill those jobs.

And that has to start at the earliest possible age. You know, study after study shows that the sooner a child begins learning, the better he or she does down the road.

But today, fewer than three in ten 4-year-olds are enrolled in a high-quality preschool program. Most middle-class parents can’t afford a few hundred bucks a week for private preschool. And for poor kids who need help the most, this lack of access to preschool education can shadow them for the rest of their lives. So, tonight, I propose working with states to make high-quality preschool available to every single child in America.

Setting aside the fact that our country has no money to expand such programs, let’s look at the idea of preschool education itself. Head Start, the government’s preschool program, was an outgrowth of Lyndon B. Johnson’s “War on Poverty”, and began in the 1960s. It exists in all 50 states and has served over 1 million children. We have, then, almost 40 years of data on the effectiveness of this type of education for three- and four-year olds.

It doesn’t work.

Over $160 billion dollars have been “invested” in Head Start, and the results are in:

 …children who attended Head Start are essentially indistinguishable from a control group of students who didn’t.What’s so damning is that this study used the best possible method to review the program: It looked at a nationally representative sample of 5,000 children who were randomly assigned to either the Head Start (“treatment”) group or to the non-Head Start (“control”) group.

Andrew J. Coulson of the Cato Institute calls Head Start a “tragic waste of money”, and states there is no category – academics, social skills, emotional development, health – where children in Head Start did better than those who had not attended a non-Head Start program.

Even the government knows this is true. The Department of Health and Human Services has admitted “by third grade, the $8 billion Head Start program had little to no impact on cognitive, social-emotional, health, or parenting practices of participants. On a few measures, access to Head Start had harmful effects on children.”

Increasing government preschool programs is sentimental mythology: we have to do something for the children, even if it doesn’t work. It makes us feel better. It’s a bad idea, Mr. President. It was a bad idea 40 years ago, and it’s a bad idea now. We don’t dare waste one more penny in our debt-laden nation, and we certainly can’t afford to continue to use our kids as guinea pigs in an experiment that fails them, and fails our nation.