The consumption payment program (see previous post) would also:
Reduce or eliminate ordinary welfare, also SSDI (ultimately)
Since welfare is administered by the states, while consumption payments would be administered by SSA, this would tend to reduce the impact and variance of the state welfare bureaucracies. [States could continue welfare programs with state funds]
Consumption payments would be figured in in determining need for programs such as food stamps or other welfare programs.
Would provide low wage laborers a place to deposit paychecks (the bank required for direct deposit by SSA)
Would be avoided by illegal immigrants (because to be eligible, the recipient must apply for a SSAN, which includes info relative to citizenship, thereby favoring citizens at the expense of immigrants). Thus the payday loan companies would not be completely out of business.
Fraud in applying for an SSAN would carry penalties, including deportation; however the fraud would have to be proved in law (or admitted.)
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