Friday, June 25, 2010

Whoopsies

California welfare recipients withdrew $1.8 million at casinos over 8 months, using their state-issued debit cards. The losers who did this will undoubtedly fuel the conservatives who bemoan welfare as handouts. First, this occurrence would certainly seem like a valid argument against a debit card method of welfare. Second, and more importantly, these withdrawals accounted for about 1% of the total withdrawals. That's a lot--no doubt--but whatever system you use, you'll have losers. A more conservative approach will increase the number of deserving, hardworking families who can't get the brief leg-up they need. A more liberal approach will increase the number of wasteful leeches who really just want a handout. I would argue that a 1% waste-rate is better than shoving deserving families into further poverty. (Again, however, the government should have been aware that these debit cards were being used for gambling before now!)

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