Eduardo Porter (NY Times, Government Aid)

00:08:20

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We wanna hear from you. Tech Stewart Barry to 63566. And let us know what you think about the stories we discuss your team to the financial exchange radio network. We're joined by Eduardo Porter from the New York Times to talk about welfare programs. He wrote an article earlier this week the Republican Party GOP insist making poor people work with some where's the proof. Good morning Eduardo welcome to the show. Good morning. So you seemed skeptical. About. Work and work requirements for things like food stamps and welfare programs. Based on your studies correct. Well I think I am not skeptical about work I think that. Pork is the bad. Out of poverty. When what you know you know can get a and especially quick you can take yourself on on a career patent rights and wages. But the thing is that I don't work requirement as we know that and then at the we have implemented and the impact welfare reforms. Unhappy not succeed he'd. In that in raising. The income to families. Who move from welfare to work until I am indeed quite skeptical of these efforts. To what patchwork requirements and the safety. K let's start with the low hanging fruit wood about. A young single able bodied male. Should there be a work requirement for that young single able bodied male. To work in order to receive food stamps. Can't they'll be. Yes I think the dialogue with several stability in the details so I can imagine a work requirement that would make sense that not only curry young able bodied man it'll. But for everybody. It's so if he's skipping work requirement has. At some sort. Trading attached to allow people to blacks to be involved in the labor market rather than getting into that you know and Devin safety and our job to do is get stuck there so there income that will really not rise. Compared to what they were getting when they were well there. I'm also if they're sound may be. Some ways the cup preventing the income of these low a low income workers so that again they can make a better living as workers and you know we had. Something called the earned income tax credit. That has been quite effective at doing that and there have been experiment with other ways of kind of supplementing with barely barely low wages. And that's another thing that I think that we could export bad. But the he like beat Georgia that might skepticism comes from the idea that you think. It just get a job is essentially quit at what had happened from from. Had that people had you know a lot of people had just done their job and the job is a very very low wage. They and they get stuck there because the United States labor market has. If all has developed a really low wage is very stagnant. A job market for folks with. Low levels of education. Until pure objective is to reduce poverty and the increase you know will be up quite a few Americans. I think that this has so far. What you went when it comes to training workers. You know the we often times companies rely on the state to the federal government to train the workers who does a better job historically at war. A training sale welder or electrician because those are good jobs he is it better to have. A private program where electric boat for instance in Connecticut says. Over not gonna rely on Connecticut to train our workers we're gonna do it internally and we're gonna train or welders in our own electricians or you better off having the government. Well I think again it's typical parents agreed in those terms I think both could do potentially a good job but government really hasn't done it for years and years I mean spending on auto worker training and retraining in the United States is extremely low. Package you know back to even before welfare reform there was distance you know training was a waste of money. But there's been a lot of more recent experiments. And pick the experience of up some other rich countries where training that is well he lyrics to the needs of local businesses. And I actually have a really big impact. I'm not only entry wages but also want to career paths once worker center their first job. And so there have been some research done in Ohio and in New York City die I don't think you're known as end the year he switched. That's policy analysis. And I think the training it this country is not necessarily to eat it immediately you know 101000 dollars per person. But once the once they go through this program aggravated identify what the local business. Mrs. need acquire the skills Albanians and to make sure that once the training is over these guys have an opportunity in the job market. What attorney over the results are actually quite cool and sustained over many years I mean the payback for these 101000 dollars is actually quite high. You know week we keep hearing about labor shortages whether it's in the housing sector truck drivers there's a variety of industries that are complaining about labor shortages. But Princeton did a study. That said a lot of the reason that the labor participation rate Eduardo is low in that 2554. Minutes historically you'll particularly along among men. Is drug addiction is nothing to do with education it's just that they're. Addicted to drugs and they think that that's. The biggest contributing factor to the decline in labor participation. I think that is a really big a really big a factor yet I know I know that papers by Allen Kruger dessert like. And yet know he's excellent and the and the papers really very good. You do have to wonder kind of like bill what's the relationship between. You know being stuck in low and job in you know in the mean in the. And stayed high anxiety the the living at the very bottom end of the income ladder. How about a suspected drug addiction in the first place because you might get. Humans it might be a loop right now you know desperation leads to drug dependency in you try to go on disability what and you knock out that the delay or four. And I'm not. I don't know that we understand and quite well how apple. How that all comes together. Because there's other research that has found that. A lot of it depends on how you delete doctors and output is per. A script so mr. appealing idea. So it tells you where doctors are much more you know probably due to prescribe these things do you rate is not surprisingly much higher and that would. Rate of men leaving the labor force is also much higher so again it's complicated and I'm not sure that we understand entirely. You know how they how but it yet instructs. They speak well. Eduardo I always appreciate your perspective and I thank you for joining us today and the financial exchange. Eduardo Porter. Financial from the New York Times and the thought is that. Requiring work. For in order to receive welfare benefits for some reason is not a good idea I I. If it's a tough sell they make whether you even if you could prove his point clinically. It's tough to sell that to the other half of the population that's going to work every day. Well that the easier when that I've kind of looked at is if someone goes on unemployment. You're you're paying them to not work the play of jobs that need to be done why not at least say hey. We have jobs that need to get done UF certain skills you fit with his job and a bull will mess you up until you find fulltime work. That kind of seems like low hanging sort giant for everybody book if it's it's look we have things that need to get done we've got six and a half million open jobs in the country. It's funny ability you say something like that and that's like the the Democrat Matra write a job for everybody. But then the Republicans would object to Republicans it's a not on that's that's that's another former welfare. And it is that that's why endeavor to get too enamored with politics on either side of the aisle.
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