The Obama administration now proposes to spend millions more on handouts, despite ample evidence of their perverse effects.
Section 8 handouts are meant to be generous enough that tenants may afford a home defined by HUD as decent, safe and sanitary. In its wisdom, the bureaucracy has ruled that “decent, safe and sanitary” may require subsidies as high as $2,200 per month. But because of that, Section 8 tenants often get to live in nicer places than those who pay their own way.
Spaulding understands why his neighbors don’t look for jobs. The subsidies are attractive—they cover 70 to 100 percent of rent and utilities. If Section 8 recipients accumulate money or start to make more, they lose their subsidy.
“Is there a real incentive for the tenants to go to work? No!” says Gobin. “They have a relatively nice house and do not have to pay for it.”
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