Following up on bob’s post…
Guangtou: First off…
– absolutely excellent post.
Certainly the incentive issues and cost are very much at the core of any negative income tax style welfare program. And the problems you point out are very real.
On the flip side, there are the costs associated with maintaining a paternalistic welfare state to consider, which by almost anyone’s measure are higher than those associated with a straight cash transfer model. It is also relevant to point out that none of us --so far as I am aware-- have mentioned any specifici dollar values that would be assigned to our suggested proposals. If you were, for example, to give everone Chex/Czhechs in their mailboxes equal to US$100,000 per year then I suspec that bob and I would agree with you. If you set the value significantly lower than than, then the answer becomes less clear.
In any event, if cost is you conceren, then the relevant question must certainly become: “For any given expenditure of resources, how can we best advance the goal that we are trying to achieve.” For bob and Milton and myself, the answer is to give those resources directly to those who are supposed to be benefited by them – rather then having those resources syphoned away by individuals or agencies who would seek to further their own self interests rather than the interests of those whom the program is intended to help. shrug
JD: Yes, I have seen public housing. I used to live withing walking distance of what The Economist called [color=black]“the most hellish place in America.”[/color]

That is exactly the point. Rather than paying government officials to take kickbacks to give their buddies sweet contracts to build poorly constructed flats, and then making it a rule that anyone who got a job had to move out of those flats (leading to everyone who did get a job moving out, and resulting in fires in garbage cans to keep warm, and routine gunshots between apartment buildings every night – both of which I personally saw) – why not skip the corrupt middlemen and counterproductive incentives and give the money directly to the people who need it?
Regarding your underlying point that those who are given checks are less likely to seek employement in the first place … fine.
I agree with you that this is a problem. But what we are faced with is a choice of which policy option is worse. In my view the worse option is to give X dollars to a federal agency and tell them “Spend this on housing for those in need” (because they won’t – I promise you they won’t). And the better (although still not perfect) option is to give a check to those who need housing, and tell them “Here’s some money – go get yourself somewhere livable to raise your family.”
