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It's rarely cruelty. It's usually bureaucracy and unintended consequences and trying to be "nice". Often you have a program created, with "free below X, slidin
by bombcar 2y ago
It's rarely cruelty. It's usually bureaucracy and unintended consequences and trying to be "nice".
Often you have a program created, with "free below X, sliding scale until no subsidy at Y" - done right, this is "perfect" in that each marginal dollar is lightly "taxed" (losing a subsidy is the same as a tax, from the worker's perspective).
This is great! Though let's say (theoretically) that the end result is a 1% "tax" for our family, so each dollar they increase income costs them a penny of subsidy. They probably have other subsidies besides school lunches, like WIC, or ACA, or whatever. Those are also sliding down at various amounts, which can cause it to start to get annoying. But it works.
Then the program is expanded, to be "nice" - even nicer! Now the subsidy is 100% below X, but they're going to also cover 100% up to Y! That's great! Everyone is better off now ... except now you have the situation where at Y + 1, you earned one more dollar, but lost potentially thousands in subsidy. This is NOT ACTUALLY WORSE than before, because at Y + 1 in both scenarios you have no subsidy, but it hurts much more in the second because the subsidy wasn't slowly being drained.