Summary
When Work Doesn’t Pay, We Have a Problem. The problem is that there is a real moral hazard when the government allows people to earn more money without paying taxes, while those who expend effort to work as part of the American Workforce Are Penalized.
Here’s a reality check from California:
- Welfare for a family of four:
- CalFresh (food aid): up to $975/month
- CalWORKs cash aid: $1,200–$1,500/month
- Add Medi-Cal, housing vouchers, and utilities, and the total monthly value often exceeds $3,000–$3,500—tax-free.
- Entry-level job:
- Average wage: $15.69/hour
- Full-time monthly pay: about $2,715 before taxes
- No guaranteed health coverage.
Let’s break it down: A parent who takes an entry-level job could potentially lose hundreds, and in some cases, thousands of dollars in benefits due to what’s known as the ‘benefits cliff’. This cliff refers to the sudden drop in government assistance that occurs when a person’s income surpasses a certain threshold. In some cases, working harder actually makes a family poorer.
This isn’t laziness. It’s rational behavior in a poorly designed system, but the effect is devastating:
- Employers can’t fill jobs.
- Families stay stuck in dependency.
- Taxpayers fund a treadmill that goes nowhere.
The Fix:
✅ Make work always pay—eliminate benefits cliffs.
✅ Require reciprocal effort—job search, training, or community service for non-disabled adults.
✅ Invest in skills—apprenticeships, vocational programs, and employer partnerships.
✅ Localize aid—fund what works, like job training programs with high employment rates, and sunset what doesn’t, such as ineffective welfare systems that perpetuate dependency.
America’s social compact was never ‘you owe me.’ It was ‘you are free to build, and you are expected to try.’ This means that individuals are given the freedom to pursue their goals, but they are also expected to make an effort to contribute to society. If we want to remain a nation of makers, not takers, we need to realign incentives and restore accountability.
