“In one respect, this shows that the safety net, though strained and inadequate, is functioning. Low-earner tax credits, for instance, create an incentive to work by tying cash assistance to earnings. Other programs enable people to work by subsidizing health care, child care and transportation.
The problem is that as labor standards have eroded, allowing profitable corporations to pay chronically low wages, taxpayers are not only supporting the working poor, as intended, but also providing a huge subsidy for employers by picking up the difference between what workers earn and what they need to meet basic living costs. The low-wage business model has essentially turned public aid into a form of corporate welfare.
The best corrective is to raise the federal minimum wage.”