Why is it so hard to escape poverty? - Ann-Helén Bay

Explore the paradox of welfare programs, and learn how they inadvertently reinforce generational poverty, and what we can do to fix them.

Imagine that you’ve been unemployed for months. Government benefit programs have helped you cover your expenses, but you’re barely getting by. Finally, you receive a paycheck— but there’s a catch. Your new job pays enough to disqualify you from benefit programs, but not enough to cover your costs. So how do we design benefit programs that don’t penalize you for working? Ann-Helén Bay investigates.

#Poverty #WelfarePrograms



@stux There is a reason why most social welfare in Switzerland is progressive with a pretty high cap. I.e., you can apply for some form of welfare once your income drops somewhere around 3000/month. You wont get much, and most people don't bother because it's not worth the effort (and the scrutiny you receive), but those who need it are happy it's there.

Similarly, if you get a job that gives you less than 80% of unemployment, after deducing all cost, the rest is covered by social welfare..

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