Paywall removed: archive.is/yEIp3
Another point he makes is that the safety net does catch people at the very bottom, but traps anyone who climbs out. For instance, at $45,000, they lose Medicaid eligibility; at $65,000, childcare subsidies vanish.
“In option terms, the government has sold a call option to the poor, but they’ve rigged the gamma. As you move ‘closer to the money’ (self-sufficiency), the delta collapses. For every dollar of effort you put in, the system confiscates 70 to 100 cents,” he says. “No rational trader would take that trade. Yet we wonder why labor force participation lags. It’s not a mystery. It’s math.”
What? How does the system take 70-100 cents of every dollar of effort put in by low income people? Medicaid and childcare subsidies going away isn't 70-100% of the income of a household earning 65k.
Obviously losing medicaid or childcare subsidies is a huge blow for anyone, but i don't understand where he's pulling 70-100% of the value of someone's labour from.
tunetardis@piefed.ca 2 hours ago
So people were actually better off during the pandemic. smh
Schmoo@slrpnk.net 1 hour ago
You have to remember that a lot of people weren’t working or getting paid either, so even though their expenses went down many were still struggling.
yes_this_time@lemmy.world 9 minutes ago
Right, it’s important to remember that for many folk they still had to go into work everyday, they tend not to be the people that have time to blog and wax nostalgic on the glory days of the pandemic. (Not directed at you or the parent, just a comment)