People basing their income on government subsidies

[Chester7]

Will it be more than a short term crisis? CHS wasn't a thing until a couple years ago and the town ran fine

People have based salaries around getting on. For someone with 3 kids, paying over $1k a month more, can definitely be a crisis.

[jye]

People have based salaries around getting on. For someone with 3 kids, paying over $1k a month more, can definitely be a crisis.

For a job with the kind of hours that requires CHS daycare, losing CHS for two kids can mean needing to make an additional $30,000 pretax. Multiply that by hundreds of people and you have a crisis.

[aygart]

People have based salaries around getting on. For someone with 3 kids, paying over $1k a month more, can definitely be a crisis.

People basing income on programs is the most common way to get stuck on them for life.

[aygart]

For a job with the kind of hours that requires CHS daycare, losing CHS for two kids can mean needing to make an additional $30,000 pretax. Multiply that by hundreds of people and you have a crisis.

Before CHS was a thing there were also jobs that required those hours.

[Chilla]

People basing income on programs is the most common way to get stuck on them for life.

Maybe, but I can't not feel for the at least hundreds of yeshiva families that will be severely affected.

[Chester7]

People basing income on programs is the most common way to get stuck on them for life.

True. And thank G-d I'm not. But many people are, and this can really hurt them.

[aygart]

Maybe, but I can't not feel for the at least hundreds of yeshiva families that will be severely affected.

You are not getting it. The only reason that daycare costs what it does is because of CHS. Now you can't find regular daycare with those hours. Once upon a time you could.

[aygart]

True. And thank G-d I'm not. But many people are.

Many people are stuck.

[EliJelly]

People basing income on programs is the most common way to get stuck on them for life.

If you live under the table, you can only grow till the table.

[Sam Finkelstein]

You are not getting it. The only reason that daycare costs what it does is because of CHS. Now you can't find regular daycare with those hours. Once upon a time you could.

What about all the daycares that made massive investments, counting on CHS tuitions? They can't afford to run on less.

[Fish Tank]

People basing income on programs is the most common way to get stuck on them for life.

Can we move this conversation to a different thread?

[aygart]

What about all the daycares that made massive investments, counting on CHS tuitions? They can't afford to run on less.

THat is a big risk of making an investment relying on a govt program

[jye]

THat is a big risk of making an investment relying on a govt program

Are there any investments that don’t? Real estate relies on 1031, government mortgage backstop, Section 8, etc.

Groceries rely on WIC and Foodstamps

Yeshivos rely on Pell

Nursing homes and healthcare rely on wasteful government spending

And so on

[aygart]

Are there any investments that don’t? Real estate relies on 1031, government mortgage backstop, Section 8, etc.

Groceries rely on WIC and Foodstamps

Yeshivos rely on Pell

Nursing homes and healthcare rely on wasteful government spending

And so on

All can be affected to some extent but this is more so since it is entirely based on that and nothing else.

[jye]

All can be affected to some extent but this is more so since it is entirely based on that and nothing else.

Nursing homes are actually more reliant on it than CHS places. There’s at least a possibility that CHS can service a paying clientele if CHS collapses. Nursing homes on the other hand….

[Sam Finkelstein]

Nursing homes are actually more reliant on it than CHS places. There’s at least a possibility that CHS can service a paying clientele if CHS collapses. Nursing homes on the other hand….

Where will the patients end up? Parents are much more likely to pull kids from daycare if it doesn’t make financial sense.

Also, nursing homes can withstand financial stress better. The buildings are more valuable and can be repurposed, not to mention that most of the expenses are operating costs – not sky-high mortgages on new buildings.

[aygart]

Nursing homes are actually more reliant on it than CHS places. There’s at least a possibility that CHS can service a paying clientele if CHS collapses. Nursing homes on the other hand….

Yes. Another aspect of nursing homes is that they are based on Medicare/Medicaid which is somewhat of a safer subsidy.

[yfr bachur]

THat is a big risk of making an investment relying on a govt program

When my sisters were choosing their majors, our rav told them to pick a field that is not dependant on govt largesse

[aygart]

When my sisters were choosing their majors, our rav told them to pick a field that is not dependant on govt largesse

Like ABA?

[Definitions2]

When my sisters were choosing their majors, our rav told them to pick a field that is not dependant on govt largesse

So what did they get?