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Not only is labor discouraged, but so is saving. Grace Capetillo, a young welfare mother in Milwaukee, was charged with welfare fraud because of her attempts to save money. Capetillo, whose story appeared in "The Wall Street Journal"in the early 1990's, scrimped to save enough money to buy a washing machine and perhaps someday send her five-year-old to college. She managed to build a savings account of more than $3,000. But then the county Social Service Department took her to court, filing charges of fraud. The court fined her $15,000.00. Obviously, Capetillo did not have $15,000 so the judge took her $3,000 savings and sentenced her to probation if she promised not to save. This is what many low-income families face in our welfare system. The message to Capetillo, and all those like her, was clear. Spend every cent you get, save nothing, and rely on government subsidies to pay for nearly everything while government bureaucrats control most, if not all, of your decisions.
Originally posted by TheWalkingFox
Funny. I don't see anywhere in the quoted text that says she wasn't working.
Could you pass those magic glasses of yours?
Originally posted by isa75 But a young women who has 5 kids should get a job and then if she needs some assistance for awhile, ok. But If you are capable of working and just dont because you know you will get a check from the government then the government has the right to tell you that you cant save money. Depending on age and health you should only be able to get assistance for a limited amount of time.
Not only are small businesses discouraged in urban areas, but urban residents are disheartened by government disincentives inherent in the current system. When people on welfare and unemployment take entry-level jobs to try to improve their lives, they lose their welfare benefits along with paying payroll and income taxes, thus decreasing their after-tax income. The startling fact in America today is that the highest marginal tax rates are being paid not by the rich, but by welfare mothers or unemployed fathers who take an entry-level job. According to a study done by Kathryn Edin and Christopher Jencks, a mother with two children who is employed at about $5 an hour would take home about 45 cents an hour less than if she were on welfare. She loses $4 a day after taking into account the loss of government benefits, taxes and such work-related expenses as transportation and child care.
Originally posted by isa75
But If you are capable of working and just dont because you know you will get a check from the government then the government has the right to tell you that you cant save money.
Originally posted by Sestias
IMO it's amazing that people on assistance can manage to save anything. Why penalize them if they do?
Originally posted by Unit541
If she was able to save $3k, she certainly didn't need all of the financial assistance she was receiving from the hard working citizens of this country. She was taking advantage of us all, and rightfully deserved to be punished.
Originally posted by Sestias
I believe that is the government's position. We evidently don't believe in allowing the poor to save their pennies or help themselves in any way. They're supposed to stay down for the rest of their lives or risk losing everything.