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Study: Some Blue States Paying Unemployed Residents Benefits In The Equivalent Of Six-Figures, Keeping Them Out Of Workforce

A pedestrian passes a "Help Wanted" sign in the door of a hardware store in Cambridge, Mass., July 8, 2022. (Brian Snyder/Reuters)

(National Review) The value of welfare and government-provided health insurance for some U.S. households in certain blue states exceeds six figures, exacerbating the labor shortage that has plagued the U.S. economy in the wake of the Covid pandemic, according to a newly released study entitled “Paying Americans Not to Work.”

In 24 states, unemployment benefits and Obamacare subsidies for a family of four with two unemployed parents is equivalent to — and in some cases, exceeds — the national median household income, according to a recent study conducted by the economists Casey Mulligan, Erwin Antoni, and Stephen Moore on behalf of the Committee to Unleash Prosperity, a non-profit that promotes free-market economic policy. The national median household income was $78,813 in 2022.

 

In 14 states, a family of four in which both adults are unemployed can receive unemployment insurance and Affordable Care Act subsidies equivalent to a job that pays $80,000 in combined salary and health benefits. Washington, New Jersey, and Massachusetts provide safety-net programs that provide the equivalent of over $100,000 in annualized cash and benefits for a family of four, the economists found.

Workers in some states can receive more benefits from remaining unemployed than their blue-collar counterparts who are working, the study showed. In roughly half the states today, an unemployed couple receiving unemployment and health-insurance subsidies can earn more than a fire fighter, a construction worker, a retail clerk, or a machinist working 40 hours a week. In certain states, couples with a combined income of more than $400,000 are eligible for taxpayer-subsidized healthcare.

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