Sunday, February 9, 2014

Liberal Policies Reward Not Working

Obamacare, extending unemployment benefits, long term disability benefits – these things harm the economy.  Spin it however you want but the sun sets in the West and economic incentives affect human behavior.  Argue that they are essential because humane but don’t argue incentives don’t matter – or labor force participation doesn’t matter! – as this merely demonstrates ignorance (or cynical duplicity).

The chart below is very simple.  It shows the marginal tax rate for Americans with median income has gone from 41% when Obama took office and is now, after the ACA, 47% when taking into account all the various government benefits that are foregone by working more.

This interview is required reading – not just for liberals but for conservatives, such as myself, that believe technology is fast eroding the middle class and creating a mass of low income people.  How to help them without making things worse is the question of the age.
Casey Mulligan: The Economist Who Exposed ObamaCare -

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