General Discussion
In reply to the discussion: The 5 Stupidest Habits You Develop Growing Up Poor [View all]Dash87
(3,220 posts)Welfare, from a government standpoint, is a feedback system. It's an investment in you, much like a bank giving out money. The idea is that the recipient will take the investment and make something out of it. Logically, the purpose of this ranges from creating tax revenue to preventing a re-enactment of Les Misérables.
The issue now is that wages are so low, money is instantly put to use with no long term benefit. It can't be invested, used to create a small business, etc. because it is needed for essentials like medicine, food, water, etc. You can't teach someone to use their money wisely when they're already doing the most logical thing possible with their money: spending it on essentials. In return, this acts to create a resentful underclass and a hole they can't get out of.
Currently, wages and joblessness are the predominant issue. I think we both agree that personal financial acumen is a very useful skill, but there is no point if nobody has jobs and low wages make it impossible. Welfare can only be successful if the conditions are right in the first place.