Friday, February 17, 2012

Single parent family with $14.5K has more disposable income than family earning $60K

Last week The New York Times reported that the federal social safety net is now used to keep the middle class in the middle class much more so than it is used to lift the poor out of poverty. This is causing a lot of resentment among the middle class that still believes its members can work hard and elevate themselves into the upper levels of society. But they really cannot any more.

Were a person to start taking the risks necessary to elevate them and their family out of the middle class, they would have to cut the strings to the safety net under them, which in turn puts them at a competitive disadvantage in the short term to their neighbors. Too few are willing to take that risk.

Compound that with the most horrifying fact you will read today. A single parent family with income of $14,500.00 actually has more disposable income in the United States than a family earning $60,000.00 a year. Yes, you read that correctly.

Now are you ready for your head to explode? "If the family provider works only one week a month at minimum wage, he or she makes 92 percent as much as a provider grossing $60,000 a year." When the government is taxing the middle class to subsidize the middle class and the poor have more disposable income than the middle class, we're doing something wrong. We are failing.

On top of that, now the Nanny State does not just want to subsidize us, they also want to inspect our children’s lunches and convey a sense to our kids that Uncle Sam, not mom and dad, will take care of them. And if you want the really dirty little secret, the fact is this is a bipartisan problem. No one on the left has the fortitude to take on the problem without further subsidies. Too few on the right are willing to tackle the subject. The votes are not there in Congress to do what must be done.

But we must cut the social safety net out from the middle class and, in doing so, make it far simpler for the middle class to grow. We must return to an America where the small businessman can become a big businessman. Today, it is far too difficult for that to happen.

—Erick Erickson

4 comments:

  1. I have people asking me to cite sources on the claim that " A single parent family with income of $14,500.00 actually has more disposable income in the United States than a family earning $60,000.00 a year."

    I know it is possible but how was it calculated?

    ReplyDelete
  2. Come to think of it, I believe I posted this before.

    Zero Hedge
    http://www.zerohedge.com/article/entitlement-america-head-household-making-minimum-wage-has-more-disposable-income-family-mak

    ReplyDelete
  3. I think so too...

    I KNOW this was true in 1996-99... I was in a custody battle at the time... She was on welfare (by CHOICE) and I was pulling down ~$75k. SHE HAD MORE $$ THAN I DID!

    After taxes -- being taxed as a single man -- my $75k was more like 50. $25k+ of that went to "child support" - which she never had to pay taxes on!

    I was averaging 1000 miles a week on my car - so just TRY to calculate the costs of commuting and etc. involved in earning my *GREAT* $75k salary that REALLY amounted to ~$13 an hour (based on a 40-hour work-week but with my commute included I was actually working 2-3x that!) THE TRUTH WAS THAT WITH THE COMMUTE I WAS BARELY MAKING MINIMUM WAGE!!

    Meanwhile...

    Her rent was $10 -- mine was $900+/month
    Her medical was FREE -- and NO CO-PAYS -- while mine cost me $100+ per WEEK!
    My utilities (all, combined) were ~$300/month, she received "energy assistance" and discounted phone/etc so hers were more like $50

    I was eating out at least 2x/day (working!) while she got ~$600 in food-stamps/WIC/ETC, so ... my food ~$600/month hers was FREE.

    She also got "head of household", "child-tax-credit", "earned income credit" -- IIRC she had something like $1,500 in "earned income" and got a $6,000 "tax refund."

    I could go on and on, but... our system is SERIOUSLY SCREWED UP!!

    Oh - and since I was awarded sole custody, I've never gotten ONE DIME in "child support" nor other "help" from her, despite her running a day-care pulling in $50k+ in *CASH*.

    Ain't it funny how this stuff works?

    ReplyDelete