An Interesting Idea
Charles Murray has an interesting new idea to fix welfare. In essence, he proposes that everyone receive a lump sum welfare payment. The lump sum nature of the payment would virtually eliminate all adverse incentives to which welfare recipients are subject. And it would get much more money back to the people by eliminating the Gargantuan welfare bureacracies. Of course, the taxes needed to fund the lump sum payments would still punish productive behavior. But reducing the destructive effect on recipients would be a real advance.
For a detailed discussion of the destructive incentives of federal and state welfare programs in New Mexico look here (pp. 12-18).