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CATO Institute says poor are milking the system

CATO Institute
CATO Institute

ST.PAUL, Minn  (KFGO AM) -- A Libertarian think-tank report claims that poor Minnesotans and those in 34 other states are living comfortably on public and assistance have little incentive to find work because they make more than they would with a minimum-wage job.

The "CATO Institute" says a parent with two children could receive about $12,000 in direct assistance in Minnesota, but when federal benefits like housing and health care are factored in the compensation jumps to more than $31,000 a year.

Karen Boorshtein of the family service league says the CATO report really amounts to criticism of America's low-wage economy, and that the minimum wage is not enough to get by on.

The authors of the report acknowledged that they found 42 percent of adult welfare recipients are working and that many are participating in community service or pursuing educational opportunities related to employment.