According to The Heritage Foundation, more than 67 million Americans received some sort of subsidy from the government last year. From housing, health care, and food stamps to college tuition and retirement assistance, an individual could receive benefits valued at nearly $33,000 per year.
Why would anyone chose to work a minimum wage job for $7.25 an hour when they could get what amounts to $16.50 per hour (based on a 40 hour workweek) from the government?
Need more evidence?
If you have a house on a flood plain, the government will subsidize your insurance. If your below sea-level home is ravaged by a hurricane, the government will help you rebuild. If you didn’t insure or hedge against a drought, the government will bail you out.
Call it a moral hazard. Call it culturally corrosive. Call it whatever you want. The bottom line is that America cannot afford such widespread government dependence, from either individuals or businesses.
So instead of complaining about outcomes – throwing Olympic badminton matches or living off the government dole – its time to change the rules of the game. Only then will we be able to create the incentive for people to work hard and succeed.