FGA Report Shows Federally Increased Welfare Programs Disincentivize Work

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Naples, FL—This week, the Foundation for Government Accountability (FGA) released a report that demonstrates how federally increased welfare programs with limited eligibility requirements continue to discourage millions of Americans from participating in the workforce.  

Despite record-high job openings outnumbering Americans looking for work, federal policymakers continue to use COVID-19 as an excuse to increase welfare benefits. Programs such as the Child Tax Credit, food stamp program, and ObamaCare subsidies have seen substantial increases which have allowed millions of Americans to collect more from welfare than returning to work.  

Combined, these welfare benefits pay better than both the minimum wage and median earnings for American workers—and now Congress wants to extend these programs. Even with wage growth at a record high, government dependency is increasing merely because Americans can make more from benefits than work itself. 

“When policymakers allow welfare to pay better than work, millions of Americans stay home. Despite this, Congress still chose to spend $5 trillion taxpayer dollars on ‘relief spending.’ It’s time for states and those committed to the power of work to step up and reject the government dependency trap so Americans can get back to work,” said Hayden Dublois, Senior Research Analyst at FGA. “Allowing wasteful spending programs to expire will reignite America’s economic recovery and fully empower the workforce.” 

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The Foundation for Government Accountability is a non-profit, multi-state think tank that specializes in health care, welfare, and work reform. To learn more, visit TheFGA.org