Xequecal wrote:
The issue is it's a welfare trap. Currently welfare pays substantially more than a minimum wage job. So someone who wants to get off welfare actually has less money when he starts working. Preventing people on assistance from saving money makes it much less likely they'll ever get off it. If you can save some money, you have enough to tide you over for the first six months to a year until you can get promoted or a little experience and can get off minimum wage.
No, the trap is being able to save the money. If you have enough money to put some away, why get off welfare? This, of course, ignores the fact (as pointed out above) that in reality these people almost never save anyhow; extra cash is far more likely to be spent on booze, drugs, cigarettes, or "luxury" foods, or video games, or iphones, or what the **** ever.
All you're demonstrating is that welfare benefits are too good. Welfare should pay less than minimum wage.
Of course, part of the problem is that you're using minimum wage as your point of comparison, when relatively few primary wage earners (as in, well under a million nationwide) make minimum wage. Minimum wage jobs are primarily second jobs, or jobs held by teenagers and college students. The typical low-income job is actually somewhat above minimum wage; $8-11 an hour jobs are quite common.