Quote of the Day – Economic Disincentive Edition

From Silicon Greybeard:

Tyler Durden at Zerohedge pointed out In Entitlement America “a one-parent family of three making $14,500 a year (minimum wage) has more disposable income than a family making $60,000 a year.
Note that more than doubling pretax income from $14,500 to $30,000 results in a loss of 28% of their net income. It would take an exceptionally rare person to go through a drastic drop in quality of life for the possibility of getting really high income and better standard of life some day way in the future.

He has a chart and everything. Go read. Then read this.

I started off my “professional” (post-college) career in February of 1986 with a $5/hr. job at age 24. That’s $10,400/yr. I moved into my first (and only) apartment on Jan. 1 1987. It cost $225/mo. A year after starting employment, my pay was $15,600/yr. By the time I was 30, I was making $30k/yr. I bought the house I’m currently living in when I turned 29. I’m 50 now, and I’m doing pretty good, but nowhere near $250k. I’ve never taken food stamps, never received an Earned Income Tax Credit, Medicaid, a rent subsidy, or Utility Bill Assistance. I did my own taxes for years – 1040EZ for Federal before I bought the house. I guess all that stuff was available, but I was young, single, healthy and working.

If I’d been a young high-school dropout with a live-in girlfriend and a kid or four, perhaps I’d have been all over that “free money.”

And I’d still be making $15k/yr, afraid to make more because of the loss of those “benefits.”

And my kids would probably be in the same boat, and complaining that “The MAN” was keepin’ ’em down.

Leave a Reply

Your email address will not be published.