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Work disincentives hit the near-poor hardest (2022)

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21–30 of 127 posts

Re: Work disincentives hit the near-poor hardest (2022)

#21
post #16

I always felt simplifying all this, it would probably be possible to consolidate and offer proper health care, and a real welfare, along with a supplemental program for those inapt to work, with it all costing less than the mountain of piled complexity and paper work that we have today.

So UBI + universal healthcare? Sign me up!

Re: Work disincentives hit the near-poor hardest (2022)

#22
post #2

I remember reading this book called 'The Losers' ( https://www.goodreads.com/book/show/2114133.The_Losers ) about a privileged man who has a car accident, becomes disabled and comes to rely on government support. The book looks at the lives of the working poor and actually poor, who rely on welfare cheques and other subsidies and highlights the social and psychological impacts of these systems of support. It was very…

I used to think the welfare system had a few bad apples. Later, while working for a charity, I realized the truth. Literally no one is immune to the character-destroying nature of entitlement programs.

> Literally no one is immune to the character-destroying nature of entitlement programs.

I personally know people who appear 'immune'. I find the issue is trauma, not 'character-destroying' - the uncertainty; the demoralizing nature; the experience living continually on a precipice, and seeing your kids, other dependants, and loved ones living that way. People are in a continual state of survival - of fight or flight, not of growth and health. Over a long term, that will injure anyone.

You can see the privileged atmosphere of HN in the comments, mostly from people with no contact with US welfare programs. It's like reading software development analysis from people who have no contact with that. (I have seen people on HN who do have experience, but they don't seem to be commenting.)

Re: Work disincentives hit the near-poor hardest (2022)

#23
post #12

I can't find the original tweet, but someone (half?) jokingly proposed a law that all benefits must be defined as continuously differentiable functions (thus making cliffs impossible). "Yeah, I made $1M last year. Here's my SNAP check for six cents."

They should be. And for the great majority of citizens, they should be calculated automatically along with taxes without the need for filing/paperwork. But we must think of the Intuit shareholders and the harm that that would cause them.

Re: Work disincentives hit the near-poor hardest (2022)

#24
post #12

I can't find the original tweet, but someone (half?) jokingly proposed a law that all benefits must be defined as continuously differentiable functions (thus making cliffs impossible). "Yeah, I made $1M last year. Here's my SNAP check for six cents."

To calculate the amount of your childcare benefit take the negative of the your adjusted gross income (box 26a), divide it by 10,000, and add 2. Then take the arctan of that result and multiply by 5,000. Add 2500π and write the result in box 46. You may round the value of π to 2 digits. If you are filing as head of household, divide the amount in box 46 by the definite integral from 0 to your adjusted gross income (box 26a) divided by 10,000 of sin^2(x)/(x^2 + 1) dx, and write that amount in box 48. If you are unable to find the function of the anti-derivative, IRS rules allow you to approximate with a Riemann sum using the midpoint rule and a rectangle width of 0.1.

Re: Work disincentives hit the near-poor hardest (2022)

#25
I usually get downvoted on any of my commentary on poverty or welfare, despite my lived and continued experience in it, but I'll punt again.

My family, from grandparents downwards (siblings, aunts, uncles, cousins, across 3 family lines) have all relied on government handouts for a majority of their lives, and had their character destroyed by the system. All rely on a meager amount of welfare to stay alive, not healthy, not productive. Just kicking along and in alcohol and drugs just to feel something. Most have died of some form of cancer from their vices.

I joke (with a semi serious tone) that my drug-induced psychosis was the best thing for me because it broke me out of the system (tied in with a move interstate) - I lost all my old friends, family was quasi-cautious of me, and I was in a new town and had to completely rebuild myself. I had a mental health nurse nurture me "back on my feet" within 6 months and it was the first time I was actually on my feet since birth.

Governments and society, in the large part, think "something is better than nothing" - but I think it's actually the opposite. Maintaining a status quo is what makes people "comfortable in misery" and not have any way out. Most can't even get a job, because the job (which might be temporary) knocks out the welfare (which is permanent, as long as they don't get a job).

I would love to see modelling or examples on my theory of the way out of this mess: reinvest the welfare system as mental health services, only give welfare to those who are in the mental health service. Incentivise for how many people transition out of the welfare system. keep it at the same dollar amount, just reallocate that money to the people who really need it.

Some cases are almost too tragic to mention and there's no positive outcome; others have "learned" behavior and can come out of it with some help (or sometimes just some positive messaging)

I also largely blame a lot of societal/government programming. I call it "poverty programming" -- the idea that people cannot do ANYTHING without help. You absolutely will not make it on your own, you NEED support you NEED this label, medication, service, benefit.

I strive to message the opposite: you can do it, release the chains. the world is not that scary. embrace the chaos, there is a lovely world out there ready to be explored.

Re: Work disincentives hit the near-poor hardest (2022)

#26
post #12

I can't find the original tweet, but someone (half?) jokingly proposed a law that all benefits must be defined as continuously differentiable functions (thus making cliffs impossible). "Yeah, I made $1M last year. Here's my SNAP check for six cents."

Why continuously differentiable and not just monotonic?

Re: Work disincentives hit the near-poor hardest (2022)

#27
post #12

I can't find the original tweet, but someone (half?) jokingly proposed a law that all benefits must be defined as continuously differentiable functions (thus making cliffs impossible). "Yeah, I made $1M last year. Here's my SNAP check for six cents."

To calculate the amount of your childcare benefit take the negative of the your adjusted gross income (box 26a), divide it by 10,000, and add 2. Then take the arctan of that result and multiply by 5,000. Add 2500π and write the result in box 46. You may round the value of π to 2 digits. If you are filing as head of household, divide the amount in box 46 by the definite integral from 0 to your adjusted gross income (b…

Or, as it has always been, piecewise linear approximate it.

Re: Work disincentives hit the near-poor hardest (2022)

#28
post #2

I remember reading this book called 'The Losers' ( https://www.goodreads.com/book/show/2114133.The_Losers ) about a privileged man who has a car accident, becomes disabled and comes to rely on government support. The book looks at the lives of the working poor and actually poor, who rely on welfare cheques and other subsidies and highlights the social and psychological impacts of these systems of support. It was very…

The decision to implement benefit cliffs is absolutely intentional, because income requirements that cause people to fall of medicaid or SNAP completely are sharp, and maybe 10 % of the population rely on those. Obamacare subsidies are phased out gradually, because half the country relies on Obamacare, and if there were issues around Obamacare, that would have repercussions at the ballot box. It serves to have an und…

Maybe it's just incompetence, bureaucratic morass etc but it really does feel like the system was designed to fail, and trap us into this false choice of a broken welfare system vs. no welfare at all.

UBI and/or UBS (universal basic services) would be so much better but there was a sustained propaganda campaign to tell people that free things are communism and therefore bad. Now Western countries are becoming ungovernable due to regulatory capture, tax evasion and industrial-scale manipulation of opinion by the elites, so fixing these problems within the current democratic system is an extremely uphill battle. At least Mamdani's election gives us some hope in the US, but there's only so much one city or even one country can do on its own without worldwide changes.

Re: Work disincentives hit the near-poor hardest (2022)

#29
post #26
post #12

I can't find the original tweet, but someone (half?) jokingly proposed a law that all benefits must be defined as continuously differentiable functions (thus making cliffs impossible). "Yeah, I made $1M last year. Here's my SNAP check for six cents."

Why continuously differentiable and not just monotonic?

Monotonic is what we have, and it allows cliffs.

Suppose, e.g., that you can get $5k/yr in benefits if you make less than $10k/yr in other revenue and $0 otherwise. Unless you have a viable strategy for pushing past $15k/yr it's a strong financial disencentive against actually working, and even then your incremental ROI isn't very good past that cliff (if it takes an extra hundred hours to push to $15.1k/yr, then compared to your $10k/yr option you're only making $1/hr for the extra work).

Re: Work disincentives hit the near-poor hardest (2022)

#30
post #28

Earlier quoted context omitted.

The decision to implement benefit cliffs is absolutely intentional, because income requirements that cause people to fall of medicaid or SNAP completely are sharp, and maybe 10 % of the population rely on those. Obamacare subsidies are phased out gradually, because half the country relies on Obamacare, and if there were issues around Obamacare, that would have repercussions at the ballot box. It serves to have an und…

Maybe it's just incompetence, bureaucratic morass etc but it really does feel like the system was designed to fail, and trap us into this false choice of a broken welfare system vs. no welfare at all. UBI and/or UBS (universal basic services) would be so much better but there was a sustained propaganda campaign to tell people that free things are communism and therefore bad. Now Western countries are becoming ungover…

There is no propaganda campaign needed to tell people that free things are bad. Nobody likes a freeloader. Western nations are ungovernable because they have universal suffrage, not because of some conspiracy. The fact is that a sizeable majority of people just don't have the intelligence to wield the political power given to them. A quick look at our present government is all that you need to tell that we are ruled by the stupidity of the common man, not some shadowy billionaires.
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