How the Safety Net Encourages Risk Taking and Spurs Prosperity

policyshop.net — The standard conservative rap on the social safety net is that it turns people into slackers by providing a comfy hammock and discouraging work and initiative. Yesterday, President Obama offered a diametrically opposite analysis: Programs like Social Security and Medicare, he argued, actually enable people to reach higher: "...these things do not sap our initiative; they strengthen us. They do not make us a nation of takers; they free us to take the risks that make this country great. That may be the strongest defense of the safety net in a nation like the U.S., where the values of self-reliance and individualism run so deep, providing fertile soil for libertarian attacks on government assistance.More interestingly, this logic chain offers insights into how to spur growth and innovation. In a nutshell, if we can strengthen the safety net and de-link it from employers, we'll encourage more risking taking, entrepreneurship, and job creation.

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