2012-12-03zerohedge.com

In the recent past we noted the somewhat startling reality that "the single mom is better off earning gross income of $29,000 with $57,327 in net income & benefits than to earn gross income of $69,000 with net income and benefits of $57,045." While mathematics is our tool -- as opposed to the mathemagics of some of the more politically biased media who did not like our message -- the painful reality in America is that: for increasingly more Americans it is now more lucrative -- in the form of actual disposable income -- to sit, do nothing, and collect various welfare entitlements, than to work. This is such an important topic that we felt it necessary to warrant a second look. The graphic below quite clearly, and very painfully, confirms that there is an earnings vacuum of around $40k in which US workers are perfectly ambivalent toward inputting more effort since it does not result in any additional incremental disposable income.



Comments: Be the first to add a comment

add a comment | go to forum thread