Paul Ryan Study Critiques Federal Poverty Spending as Hurting Poor — Income/Wage News Roundup

The way means-testing works discourages the poor from trying to increase earnings, he argues.


The latest news on poverty and wages: A House Budget Committee study promoted by GOP Rep. Paul Ryan criticizes America's $799 billion anti-poverty program as actually working to keep poor people down. The study argues that the means-testing system puts poor people in a position where they are punished for trying to earn more money:

"For too long, we have measured compassion by how much we spend instead of how many people get out of poverty. We need to take a hard look at what the federal government is doing and ask, 'Is this working?'"

Previous news on poverty and wages: President Obama will make the case for raising the minimum wage from $7.25 an hour to $10.10 an hour in New Bristol, Connecticut on Wednesday, a day after presenting his fiscal year 2015 budget proposal. House Republicans have opposed raising the minimum wage, claiming that doing so would hurt employers.

The Congressional Budget Office (CBO) estimates that raising the minimum wage to $10.10 an hour would lift about 900,000 people out of poverty and would cost around 500,000 jobs. However, CBO Director Douglas Elmendorf said that "there was substantial uncertainty" about the estimated effects the proposed minimum wage hike would have on employment.

Related previous coverage from Reason:

David Harsanyi on the lack of economic consensus on Obama's policies.

Peter Suderman on how the recent minimum wage reminds us why we need the CBO.

Veronique de Rugy considers whether it is time to introduce a guaranteed income.

More from Reason on the minimum wage here.

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  1. Raise the minimum wage? But why? Inflation has been low according to the administrations economic geniuses of the last five years.

  2. So... it would help 900k people earn 30% more but would cause ~500k to become unemployed and destitute? I'm guessing the latter won't get much mention in New Bristol today

    1. *Government thug taps you on the shoulder, says " Look over there", you look. He hits you with shovel, drags your body to black a SUV.*

      Now theyll never know.

      1. * a Black SUV*

    2. Here let me help, dan'o;

      So... it would help 900k people earn 30% more and would cause ~500k to be liberated from voluntary employment.

      If you like your narrative, you can keep it.

      Your Magnanimous Overlord,

      Barry O.

  3. I'm sure there are people that are still trying to convince us that the Sun revolves around the Earth and that Bigfoot/Yetti exist.

  4. Since there's not a snowball's chance of a minimum-wage increase passing the House, I can only assume that this is calculated posturing and misdirection intended to distract semi-conscious potential voters from the ACA, the economy, and the memory of Obama using every last ounce of his inaugural capital to attempt to screw over gun owners a year ago.

    Best of luck with that, BHO.

  5. my buddy's step-mother makes $63 /hr on the computer . She has been fired from work for ten months but last month her payment was $17491 just working on the computer for a few hours. have a peek here...........http://www.Works23.us

  6. I do not think such measure as raising minimum wage would create some positive effect taking into consideration the threat of job loss for many of people. Even now lots of families depend on Internet loan providers to make their ends meet, being unemployed they will lose even this last chance.

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