Hello fellow rebel capitalists hope you're well in the news today many states

welfare now pays better than the median income and on this channel and on my

whiteboard videos you guys know that for a long time I've kind of struggled to

figure out how on earth all these restaurants are still full here.

We've got the bullwhip effect.

I get it.

Unemployment rate is very low. Why is the labor force participation so low?

There's a lot of variables that go into it obviously. But I think that this is one of the variables that definitely explains why we could be seeing the labor force participation

rate so low because if you incentivize people not to work. Should you be surprised that they choose not to work?

If they're able to make more than the median income just by sitting at home and doing nothing or working under the table and you know

making a lot more than most people I mean it's all about incentives right it's like

Charlie Munger says show me the incentives and I'll show you the outcomes.

And I think people get lost in this debate because you got one side saying, oh, there's people that

really, really need welfare.

And you've got the other side saying, oh, well, everyone on welfare is just scamming the system.

And both are true at the same time, but it's just to what degree.

I think if we could just come, if both sides could say, yes, there are some people that I guess deserve for lack of

better term welfare and there's some people that don't if both sides could

agree on that and then to say okay now let's figure now that we can agree on that, now let's come to a determination as to what the

percentages are. Is there 90% that deserve it or 5%? And then we can start figuring things out adjusting incentives and then moving forward with the system

It's by no means perfect, but it is the best when you consider the trade-offs that are involved. Let's go over to this story

though and it is quite shocking that there's places where I mean people are getting like

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