We Should Subsidize Low-Wage Work

Last week, a University of California study reportedthat Washington spends more than $150 billion annually on means-tested benefits—principally food stamps, Medicaid, Temporary Assistance for Needy Families, and the Earned-Income Tax Credit—for low-income workers. The usual suspects on the left wasted no time attacking what the New York Timestermed “in effect, a huge subsidy for employers of low-wage workers.” Such attacks misrepresent the actual role of the social safety net in the labor market and stigmatize low-wage work, which offers the best opportunity for struggling people to improve their circumstances.

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