The Disincentive to Work

One of the successes of US law vs. European is that we have generally maintained the inventive to work -- in other words, we have been able to relieve economic hardship while still making unemployment uncomfortable enough to provide incentives to find work.

Based on this Mises Institute post, this may no longer be true.  If a family is comfortable with $45,000 a year, or doesn't think it has the prospect of earning more than that, there appears to be little incentive to work.

Figure2

Figure1

See the original post for explanation of the methodology and the exact programs driving these lines.

  • perlhaqr

    Some people are unwilling to take money they haven't earned.

    Such people end up being the sheep fleeced to make coats for the wolves with no such morals.

    That sucks, but on the other hand, I'm not going to change my philosophy. But I might well do what I can to avoid taxes. Nothing immoral about that.

  • Dennis

    Gotta watch those typos...
    'Inventive' to work?
    Yes I am.

  • Maddog

    How long before the rising tax rates will force single earner families to divorce but live together thus permitting the non-earner spouse to instantly earn $45,000 per year in Govt benefits?

    Incentives matter.