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in michigan, a law was passed in oct. 1 to take away welfare benefits from parents whose kids are truants. What kind of an impact would this have in the economics standpoint, both positive and negative?

This will start with a decrease in welfare spending by an amount equivalent to:
(# of people on welfare with children in violation of truancy laws*the average cost of welfare)

There's a few important things to remember, though.
1) Michigan's economy is so jacked-up right now that this move is sort-of like fighting Godzilla with a BB gun.

2) Decreased welfare benefits means decreased consumer spending, causing business sales in MI to decrease, further decreasing employment

3) Eliminating welfare benefits may actually cause truancy to increase, as families are driven into homelessness and poverty, both of which are known to increase drop-out rates

Conclusion: This law was passed without anyone having actually done the research required to determine the final outcome.  It may help, it may not, but the law was passed as a reactionary move in response to fears about government debt, rather than with sound economic research proving it would produce greater returns on investment than the spending in the first place.


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Michael Taillard


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Economic Consulting: American Red Cross; US Strategic Command -- Economics Lecturing: Bellevue University (Bellevue, NE) Huijia College (Beijing), OPII Schools (Omaha), Madonna University (Livonia), Schoolcraft College (Livonia), ZomBCon (Seattle), Zombiefest (Lincoln) -- Media Appearances: Dead Man Working (2012 Movie documentary), The Heartland News (Omaha local news outlet)

American Economics Association, Business Networks International, Midwest Writer's Guild, Zombie Research Society

Economics and Modern Warfare: The Invisible Fist of the Market (Palgrave Macmillan) -- 101 Things Everyone Should Know about Global Economics (Adams Media) -- Corporate Finance for Dummies (Wiley) -- Psychology and Modern Warfare (Palgrave Macmillan) -- Analytics and Modern Warfare (Palgrave Macmillan)

PhD (Financial Economics; honors) -- MBA (International Business Finance; honors) -- Grad School Certificate (International Business Management; honors) -- BS (International Business Economics; honors) -- AA (Business Administration; honors) -- Certificate (Chinese Language and Culture) -- Trade School (Transportation Logistics; honors)

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Philanthropy awards and nominations for the OPII Schools economic experiment

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