Government subsidies make people have a lapse in judgement? (unemployment, money, income)

[MetroWord]

I've always considered myself pretty liberal. But that doesn't mean I'm not going to glean good ideas from some conservatives. A while back, I remember listening to this segment of Dave Ramsey.



Fast forward to 2:40 if you don't want to listen to the whole thing. In short, the woman has the ability to make $150K a year but she is sticking with public service making $70K a year so her debt could be forgiven in 10 years. That's $80K/year lost income. That's $800K she will have paid to have debt forgiveness for $232K. In other words, government subsidy caused this otherwise very bright young woman to have a lapse in judgement.

Forward to now. Here is the story.

https://www.msn.com/en-us/money/smal...?ocid=msedgntp

This business owner got a loan to pay her employees during the shutdown while also being able to pay her rent. But her employees are mad at her because on unemployment with the additional $600/week they would be making more than what they normally make at her business. They are accusing her of being selfish and take away their higher unemployment pay.

From an outsider perspective, by her being able to get that loan mean she could pay her rent and not have to close her business. In other words, when this thing blows over, all her people will be able to come back to work. That's long term employment.

But the government subsidy of $600/week on top of unemployment has caused this woman's employees to have a lapse in judgement. Think about it for a second. If she didn't get this loan, she would have to close down her business. Yes, these people can temporarily get a little more than what they would normally get paid working, but once this thing blows over they won't have a job to come back to. See the lapse in judgement there?

Dave Ramsey and I don't see a lot of things eye to eye. But I'm starting to see things his way in regarding to government subsidies.