When Welfare Goes Wrong...

[ZenGum]

There was a case in Australia where a private company won a contract to help long term unemployed.
I cannot remember the numbers exactly but the rest of this is correct:
They were paid $5,000 for each long-term (more than two years)unemployed person they helped. "Helped" was defined as being in paid work for at least 30 hours a week for four weeks.
So the company had them sit at a desk and phone businesses in the yellow pages asking if they had any vacancies, which if there were, were listed on the company's placement service.
They paid the person $15/hour, kept this up for four weeks, and then finished the contract, i.e. dump the person and get a new one. Repeat cycle.
Expenses = $1,800 in wages, plus phone calls. Income = $5000 plus any job leads. Actual help delivered to unemployed person = minimal.

Some people rip off the system. Sometimes, they are wearing suits and ties. Sometime, trakkies, hoodies and ugg boots.