Congress intends to raise the federal minimum wage from $7.25 to $15. This makes various assumptions: first, that minimum wage workers themselves are indeed poor.
A law of the Welfare state can be said to be this: increases in public income transfers will simply be offset by reductions in private earnings.
Thus, low-income families experience only a meagre increase in their standard of living, and are subject to dependency on state welfare spending.
The study postulated that a 50 percent increase in welfare spending yields a 43 percent increase in the levels of single parenthood.
I've argued in the past that single parenthood and a lack of full-time work are fundamental contributing factors to poverty in the United States, both of which the welfare state reinforces.
The welfare state may negatively impact social mobility.
Evidence strongly suggests that the welfare state does not alleviate poverty in the United States, and therefore that these poverty projections to support Congress's proposals are overblown.
https://mises.org/wire/progressivisms-failures-minimum-wages-welfare-state
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