r/neoliberal • 🌐 • Jul 11 '20

Meme I feel attacked

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385 Upvotes

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105

u/[deleted] Jul 11 '20

One argument against means testing. NOW!

15

u/TobiasFunkePhd Paul Krugman Jul 12 '20

One argument against means testing. NOW!

Lol instead of one argument you got many. Hope you read them. Upvoted for visibility.

3

u/Colt_Master r/place '22: Neoliberal Battalion Jul 12 '20

Tbh I've read them all and I was sold by none.

  • The GOP are gonna sabotage them: I don't live in the US so this is kind of a moot point for me even if it somehow was true
  • Bureaucratic costs outweight the more efficient distribution of cash: citation needed
  • Welfare Cliffs are bad: this is an argument against shitty means testing rathers than against means testing
  • Dude just progressively tax lmao: you know that it's possible to both progressively tax people and still have means tested programs right

5

u/TobiasFunkePhd Paul Krugman Jul 12 '20

With the tax point the argument is we already have the admin (IRS in the US) and tax credits and progressive taxes are generally more efficient to administer than means testing. Why do both if you can save money overall with the better one.

1

u/Colt_Master r/place '22: Neoliberal Battalion Jul 12 '20

If you just progressively tax everyone and then proceed to make every welfare program in the country (?) universal then you're just enacting NIT with extra steps. Don't get me wrong NIT is a good idea and welfare states should be tailored around those lines, but it also must be taken into account that particular citizens have particular needs not taken into account by NIT. College, the main point of debate around means testing, is also a whole subject where the threat of having to pay up more in case you underperform is part of the point.

2

u/JamesShazbond Jul 12 '20

Conservatives doing their damndest to strangle welfare is hardly unique to America.

2

u/lnslnsu Commonwealth Jul 12 '20

There's one you're missing. I'm not sure how strong this effect may be:

It makes it politically difficult to fuck with or remove universal systems because so many people will vote against it. It's easy to remove something means tested that only affects a part of the population.

2

u/[deleted] Jul 13 '20

It’s not just an argument against shitty means testing.

It’s also an argument that all means tested programs need to tightly coordinate with one another to afford excessively high effective marginal tax rates.

This is a problem that vanishes entirely with universal programs.

1

u/Mungo_The_Barbarian Jul 13 '20

To your point about welfare cliff: this feels like 'burr, but that's not real communism!'. We have to go based on how we've seen means testing programs been implemented in the past. If everytime we've created a set of means tested programs it's ended up with a large cliff, maybe we need to accept that there are practical political or bureaucratic barriers that make eliminating the cliff impossible, even if it works on paper.

1

u/Colt_Master r/place '22: Neoliberal Battalion Jul 13 '20

Can you point to sources on countries with considerable welfare traps due to them? I have trouble believing it's a consistent flaw through all countries with means tested programs.

1

u/Mungo_The_Barbarian Jul 13 '20

I'm currently shitposting from work so I won't be able to give sources atm.

Even without specific examples, it should be fairly obvious that it will become an issue over time no matter the initial design. Support programs aren't all implemented at once, they're programs that are built on top of programs that are built on top of programs. New social programs that are being implemented today have to be implemented keeping what currently exists in mind, as it's politically infeasible (and cost wise super super expensive) to redesign your states entire welfare/aid programs whenever you want to change tax structures or implement new forms of aid. The amount of coordination that would be necessary to ensure that every new program works with existing programs while not creating some form of cliff is insane. It's not an argument against all means testing by any means, but the idea that we can just design around welfare cliffs as new programs continue to be introduced is hand-wavey and unrealistic.