The Cato Institute is once again peddling the myth that government assistance to low-income Americans IS TOO GENEROUS and it discourages them from working (“keeps them in poverty” as right-wingers love to claim, with false empathy).
Their method of analysis was debunked long ago by the Center on Budget and Policy Priorities.
Not only does Cato count certain benefits as income when the typical AFDC family does not receive them, but Cato also exaggerates the average benefit levels these programs provide.
By overstating the benefits and ignoring means-testing, right-wing ideologues are able to conclude that welfare beats working for a living at a low-wage job. If this were true, the logical next step would be to increase wages – but instead the right-wingers demand a reduction in public assistance.