Current Events > The economy is hot enough that concern over the benefits cliff is coming back

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https://thecity.nyc/2019/06/minimum-wage-hike-is-net-loss-for-those-whose-benefits-fall.html

they frame it as being an issue with minimum wages, and I'm sure that's a contributing factor, but ultimately it is a much broader issue about how we structure public assistance in this country:

Heather Hill, an associate professor at the Evans School of Public Policy & Government at the University of Washington, has been studying the impact of the $15 minimum wage on workers in Seattle, which hit that rate in 2017.

She said that families or single parents with kids are among the most vulnerable to the benefits cliff.

This is not at all specific to minimum wage increases, said Hill. Its a broader issue of how weve set up programs that help low-income families.

anyway, the reason I say this is due to the relatively good economy is that when there's a bad economy, you see a lot more concern over the growth of spending in public assistance programs and the number of unemployed people. this kind of narrative only breaks through when that is less of an issue
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One thing that bothers me about this- the lady in the example lost her $1400 rent subsidy entirely ? Usually gaining more money just means the assistance amount for things goes down. If youre receiving a large amount it doesnt usually go 100% to $0 like that. Only when youre already close to the income cap would something like that push you over into now you get nothing territory. Though they did say there is a disparity about how much people lose in benefits vs what they start making with the new wage (ie i think the example was the persons wage went up $160 but they lost out on $240 in benefits). That is absolutely something that can be addressed/fixed.
I also will say this isnt exactly new news, just more relevant with the pay increase. I remember my mom wouldnt let me get a job as a teen for this exact reason- whatever I made would end up losing us more than I earned in benefits. I know many households in similar situations- have disabled members who may benefit from the structure of some part time work or something but cant do it without affecting their benefits. Its an endless vicious cycle- depending on public assistance keeps you stuck on it, because a change would have to be drastic to be able to live without it when youre dealing with a certain level of poverty. Also its very multi-generational. If your parents raised you with food stamps and such, you are much more likely to end up using them yourselves. None of what I said is meant to disparage anyone, by the way.
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