| HappySqurriel said: I forgot to mention that one of the consequences of reducing/eliminating welfare payments would be a reduction in the cost of living allowing many poor people to maintain or improve their current standard of living without depending on welfare subsidies. The most obvious example of what I am talking about can be seen in the rental real-estate market, where increases in the number or size of rental subsidies tends to drive up the rent on low end properties directly (and on nicer properties indirectly); and the reason for this is that the capacity for people to pay for a rental property increases, driving up the quantity demanded, creating a shortage of rental properties at every price, and rents necessarily increase to find a new market equilibrium. |
I can vouch for this as a landlord.
As a landlord, I can charge $450.00 USD per month for my apartments on the free market, or $600.00 USD per month via HUD. Which one do you think I'd rather charge everyone?
Back from the dead, I'm afraid.
