Feed on
Posts
Comments

A very good and underappreciated site is Put a Number on It. Here, from a recent post on inequality, is not something many are familiar with:

Transfers comprise social security and the rest of welfare. I gave $5,700 to every person over 65 and spread the rest based on number of children and distance from the poverty line. This simplification gets the model close to the actual numbers (average transfers are only $6,700 per person, so being off isn’t a big deal) but the distribution method doesn’t accurately mirror how the government actually spreads money around to the needy.

The reason for that is that the more I studied the actual distribution of transfers in the US, the more gin and tonics I had to drink to keep my sanity. Not only is the assignment of transfers so arbitrarily complex as to be unmodelable, but it seems designed mostly to benefit lower-middle class people (21-50 percentile) at the expense of actual poor people (1-15). The third quintile by income (41-60) receive twice as much in government transfers as the bottom quintile (page 6).The bottom 15 are almost all out of the labor force (🎅), mostly unmarried (🚶, 💔), with no capability of going to college or buying a house. Policies like minimum wage, earned income tax credit, marriage tax breaks, mortgage tax breaks and college subsidies don’t help them one cent. Every policy that doesn’t help the poor ends up hurting the poor, by increasing the gap between them and the other 85%, and by blocking their social mobility and reducing their purchasing power. One of my upcoming posts will basically be a long rant about how American policies and politics are stacked against the bottom 15% to a depressing degree.

The cynic may respond that the votes of the bottom 15% don’t mean much. This election year seems to provide some fuel for that fire.

3 Responses to “On Who Receives Government Transfers”

  1. 300556 17280Hiya. Quite cool internet site!! Man .. Beautiful .. Fantastic .. I will bookmark your internet web site and take the feeds additionallyI am happy to find numerous helpful information here within the post. Thank you for sharing 336282

  2. 496766 870324Aw, i thought this was quite a good post. In concept I would like to devote writing such as this moreover – spending time and actual effort to produce a terrific article but exactly what do I say I procrastinate alot by no indicates manage to get something done. 122355

  3. binance- says:

    Thanks for sharing. I read many of your blog posts, cool, your blog is very good. https://www.binance.com/it/join?ref=S5H7X3LP

Leave a Reply