“Yea, a person making $16 an hour can take home $6 an hour.”
Eventually this person figures out they can take home more on government benefits. Then they can do pick-up work on the side and pocket everything they make.
I know of people who do this.
I tried to hire a guy recently - when I refused to do so under the table, he refused to work - as he would put his unemployment in jeopardy - and he made more combining unemployment with the work he did on the side. He was quite open about it.
That’s how this crazy gravy train works - rewarding dishonesty at every turn.
I don't know that it's "eventually". The information about how to play the system is on the street by now, and is passed down from one generation to the next. I've done some tax preparation work and the folks who claim EITC come in pretty well informed about it and just rubbing their hands together waiting for that check of around $5,000.
“That’s how this crazy gravy train works - rewarding dishonesty at every turn.”
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You are absolutely right and we should not be surprised when we get more of what we reward and less of what we punish as we punish hard work and productivity and reward sloth and cunning.