Tag: safety net

This week on Banter we’re joined by AEI Morgridge Fellow in Poverty Studies Robert Doar. Robert contributed to a new publication titled “This Way Up: New Thinking About Poverty and Economic Mobility.” The booklet of short essays, published by Opportunity America in conjunction with AEI, showcases some of the best new thinking on issues such as welfare reform, wage subsidies, workforce training, school choice, and family formation. Contributors include Speaker Paul Ryan, AEI President Arthur Brooks, Charles Murray, Robert Doar, Tamar Jacoby, and a number of other prominent researchers on the right. More information on the report can be found at the links below. If you’d like a complimentary copy of the report please send your name and email to banter@aei.org.

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Contributor Post Created with Sketch. Is America’s Welfare State Suffocating US Entrepreneurs?

 

img-manlightbulbinnovationeconomyprosperityshutterstock_152308365121What’s the link between entrepreneurship and the welfare state? Dynamic societies certainly require strong, pro-work, fiscally sustainable safety nets. But is there a trade-off where expanding the welfare states reduces entrepreneurship? Or might it actually encourage entrepreneurship?

Over at The Atlantic, Walter Frick offers economic literature roundup that suggests the latter. A strong safety net encourages startups by making the effort seem less risky, he argues. For instance, a 2014 paper found the expansion of food stamps “in some states in the early 2000s increased the chance that newly eligible households would own an incorporated business by 16 percent.” Another paper by the same author found that “the rate of incorporated business ownership for those eligible households just below the cutoff was 31 percent greater than for similarly situated families that could not rely on CHIP to care for their children if they needed it.”

Likewise, Frick argues, “Obamacare doubles as entrepreneurship policy by making it easier for individuals to gain health insurance without relying on an employer.” Yup, we’re talking about the “job lock” phenomenon. Then there is a 2010 RAND study that found “American men were more likely to start a business just after turning 65 and qualifying for Medicare than just before.” Finally, it appears that when “France lowered the barriers to receiving unemployment insurance, it actually increased the rate of entrepreneurship.”

Contributor Post Created with Sketch. The New Paul Ryan Budget Plan: A Brief Review

 

The annual House of Representatives budget resolution – you may know it as the “Ryan plan” or perhaps as the “Path to Prosperity” — has turned into a weird Washington phenomenon, one that combines analysis fiscal, political, and psychological. Do the numbers really add up? Will it hurt or help GOP election odds? Does it signal that Roman Catholic Paul Ryan or Randian Paul Ryan is the fellow running the budget committee? And, of course: does the budget suggest Ryan will run for president 2016?

Of those questions, I’m confident only in answering the first. (Alert: CNBC and MSNBC bookers. Ignore that last sentence. I am supremely confident in answering any and all possible questions about the Ryan budget, as well as the 2016 presidential race, the Russian annexation of Crimea, the Yellowstone earthquakes, and the new Captain America film. I also know a thing or two about nanotech.)