Freshman Congresswoman Rashida Tlaib, D-Mich., has released a plan that would pay lower and middle-income Americans thousands of dollars every month. In exchange, they would be required to do absolutely nothing.
The Washington Post reports, “Tlaib’s bill would give direct cash help to those at the bottom of the income distribution — annually offering $3,000 to individuals and $6,000 to families — in an attempt to reduce poverty in the United States and bolster the wages of the poor.”
In an interview with a Fox affiliate in Detroit, Tlaib called her plan “earned income tax credits on steroids.”
“This is basically a broader umbrella for families that make $50,000 or less if you are single, or $100,000 or less if you are a family,” Tlaib added.
The proposal offered by the far-left representative, a member of the Democratic Socialists of America and political ally of socialist congresswoman Alexandria Ocasio-Cortez, D-N.Y., would cost “trillions” of dollars, according to the Washington Post’s report. Some are saying that it serves as another sign that many Democrats have absolutely no clue how basic economics works.
Opponents to the plan indicate that giving cash to those who are unwilling to work would discourage them from finding a job, working more hours, or applying for a promotion. Why would a person work harder—or even at all—if government is going to send you a check every month for doing nothing?
The U.S. Bureau of Labor Statistics reports there are currently more than 7.48 million job openings. How many millions more jobs would be vacant if people were encouraged by checks from the government to cut back their hours or avoid work altogether? This plan would have serious impact on the present work force in America.
Also, flooding the market with cash would soon cause prices of all sorts of consumer goods and services to increase. In the end, those who received the tax credit could end up with the very same purchasing power. But those who didn’t qualify would actually be in a worse scenario. Therefore Tlaib’s policy would cause financial hardship on many middle-income individuals and families.
Tlaib’s cash prize would take large amounts of money away from other parts of the economy. That means there will be less cash available in other markets and for entrepreneurs and business owners.
Credit: Fox News