Santa Claus Economics: How Welfare Creates Neurosis | Thomas J. DiLorenzo

Santa Claus Economics: How Welfare Creates Neurosis | Thomas J. DiLorenzo

He also makes the big point about how
welfare causes a moral hazard problem for example, take unemployment
insurance again, it is well-known, Mises wrote about it, there are many other mainstream
economists so-called written about it its in that one the moral hazard
problems on unemplyment insurance is that it causes more
unemployment. In the United States today I think it’s around two years. Unemployment insurance lasts around two years. It’s
different the amount you get different state by state but it’s not
unusual for it to be sixty percent or more of
your previous income while you were employed and so you
can basically get a check for sixty percent or so, in some states, of what you were
making but you don’t have to go to work. you don’t have to get dressed, you don’t have to spend that money and gasoline lunch or
anything like that. And so, surely that diminishes the incentive that people
have to retool, retrain, and get a new job. For example, during the housing market crash in the United States the housing bubble it was
created by fed I’ll sorta induced billions of
people to get jobs or careers you add more issues finance are all home repair job Home Depot places like that, any everything
related to the building and maintenance of houses. And then
when the crash occurred tens of thousands or hundreds of thousands jobs disappeared and people were forced to retool, retrain, and get a different type of job. So if you can just lounge around for two years and make a decent amount of money to pay the bills, a lot of people are going to take advantage of that and are not going to be so vigorous in pursuing a new career or a new job and so when the government majors get unemployment rates one of the ingredients is the duration of unemployment, how long
people are unemployed. Of course with unemployment insurance they are
more generous and longer-lasting it increases the duration of unemployment so that the unemployment rate that you read about is higher whether
it’s the official government unemployment rate or if you look up shadow statistics and find out the real unemployment rate is if you
use the formula the government used 25 or 30 years ago member you know it’s
not be seven-and-a-half percent government grant now more look more like
were here 15 percent need to wait longer because no girl
wanna sure in its order thing like Macy’s not your
year look entirely what I wrote down this
quote midler chapters in social insurance dumped me lead euros the ensure dangerous public the your
cellular he was very astutely talking about how
won’t be here is changed in many ways reminds
so-called social insurance or well there and it’s not just that people stay
over longer mom is rutledge well period
generous are that people have enough to eat here
holding so the sir child care subsidy min so were did not uuuu do create welfare trap it will talk more about is nestle the year you could try whereby for their
beloved this number is there in New York City making forty thousand
dollars a year welfare which yesterday and pedicures
ending in a draw up and as a result getting a decent paying
job lose most the yes there there marginal tax rate could be 67 be eighty percent if you look at it
accident not in terms of writing a check payable government but losing not been judge that government was
giving for attack was taking something away
trip here that we were were given user who complain %uh single
mother several children who’s getting along not living well to work lavishly but
getting along on welfare to go get a job good work are
being senator you seventy percent marginal tax rate
new or losing over called allowance nor been standards important she straps in lockerbie she trapped their turbine yeah her children probably will be here
grandchildren yes it is system continues a great day
so there is one other thing that means he
is talking about not only that but people people and it could change things do know when you don’t have to get up
waterworks when you don’t have you to socialize with other people
acceptable way don’t know I’ll should look for a job
interview in look and get cleaned up you don’t have to
cooperate with other unit B your work weights do you turn into a
swamp was near no user like many people do entered into
a small lana Lee be slow your it’s almost never
let down but I think that’s what I think that
might be easy to use the word euro since where and he was probably
alluding to you even there yet your many years your
wrote years not what you would do it well parents
didn’t care Wow tiny tiny little smidgen of what it is today

Daniel Yohans

7 thoughts on “Santa Claus Economics: How Welfare Creates Neurosis | Thomas J. DiLorenzo

  1. Rockownz5150 says:

    Why is the sound quality so poor?

  2. LucVNO says:

    …..  There should only be private unemployment insurance…….  That'd be expensive. =]

  3. Arlo Pignotti says:

    What this man says in 5 minutes covers all the things that I haven't been able to utter aloud because it's too personal, too painful, and too sad.

  4. Ethercruiser1 says:

    Thanks for the good SHORT videos.  I just don't have the time to listen to the long ones, although I'm sure they are probably good.

  5. BenReece101 says:

    Not one mention of the largest "welfare" recipients in America, the US military.
    What about the neurosis of the gangster's with stars and bars on their shoulders?
    With over eight TRILLION dollars pissed away into the void, I see the US military as the most dishonorable cult of child raping fascists on the planet.
    What does Mises say about that?

  6. jorgipogi says:

    You make very good arguments, but you left out the biggest issue for people choosing welfare that is that there is no incentive to go to work because the minimum wage pays almost as much as welfare. You have no incentive to go to work when you know that you have no expectation of coming out of poverty.

  7. l says:

    Disgusting rightwing drivel.

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