A massive labor shortage continues to hamstring the economy, with millions more empty jobs than unemployed job-seekers. All the while, millions of people remain on the sidelines, with the labor force participation rate significantly below the pre-pandemic norm. Why are so many potential workers sitting idle while jobs need to be filled?
Well, the astoundingly bloated nature of America’s welfare state offers one explanation, according to a new study . Conservative economists Stephen Moore, E.J. Antoni, and Casey Mulligan of the Committee to Unleash Prosperity analyzed what a typical four-person family, with two nonworking adults, could receive in welfare benefits, including both unemployment and healthcare subsidies, across the 50 states.
They found that in three states, Washington, New Jersey, and Massachusetts, this typical family can earn the equivalent of more than $100,000 annually without working, thanks to various government programs.
Meanwhile, in 14 states the benefits are equivalent to an $80,000 annual salary or more. In these states, welfare pays better than the typical job of a secondary school teacher or electrician, according to the study. In 24 states, languishing on welfare pays better than the typical salary earned by a firefighter, truck driver, or machinist.
Does that sound like a system incentivizing the right things?
