"Additionally, people aren't stupid." < We'll just have to agree to disagree on this point. I tend to agree with George Carlin on this particular point: “Think of how stupid the average person is, and realize half of them are stupider than that.”
Your example being, at least in my book, a counter example of your premise.
Working all summer on a concrete crew for cash seems like a good idea until an on-the job injury without workman's comp changes the way he walks for the rest of his life. Dealing weed doesn't have the profitability these days with legal dispensaries in many states and mandatory sentencing in the others. Running scrap is somewhat 'grand larceny adjacent', and again prone to an uninsured skill-saw event. Remember to wear eye protection when using a power tool.
So, returning to the two adults, two children exemplar household, it seems reasonable to expect that in general these people exhibit a lower incidence of these behaviours. If one or both of those children are still young enough to require round the clock supervision there is a significant limit on the couple's available working hours every week. That would make a similar 'hard to commit' to a higher paying full time job, for at least one parent.
I mean, the two kids really cut into the time flexibility necessary to participate in the grey-to-outright criminal economy, so I posit that people who report as earning the bottom quartile who also undergo the stringent documentation requirements necessary to receive benefits are more likely to be actually living on what they legally declare, than are somehow working, stealing benefits AND making substantially more through grift or crime.
I admit this may be my own biased observation, but the single 'smaht guy' with 22.5k household income and the criminal gig enterprise seems very unlikely to be filing a tax return or receiving any other support. So that case is interesting, but not very applicable in this equation: he's living on whatever he has this week or this month with very little long term benefit from earnings he cannot use to build a credit score, secure stable housing or invest in a future.
Your example being, at least in my book, a counter example of your premise.
Working all summer on a concrete crew for cash seems like a good idea until an on-the job injury without workman's comp changes the way he walks for the rest of his life. Dealing weed doesn't have the profitability these days with legal dispensaries in many states and mandatory sentencing in the others. Running scrap is somewhat 'grand larceny adjacent', and again prone to an uninsured skill-saw event. Remember to wear eye protection when using a power tool.
So, returning to the two adults, two children exemplar household, it seems reasonable to expect that in general these people exhibit a lower incidence of these behaviours. If one or both of those children are still young enough to require round the clock supervision there is a significant limit on the couple's available working hours every week. That would make a similar 'hard to commit' to a higher paying full time job, for at least one parent.
I mean, the two kids really cut into the time flexibility necessary to participate in the grey-to-outright criminal economy, so I posit that people who report as earning the bottom quartile who also undergo the stringent documentation requirements necessary to receive benefits are more likely to be actually living on what they legally declare, than are somehow working, stealing benefits AND making substantially more through grift or crime.
I admit this may be my own biased observation, but the single 'smaht guy' with 22.5k household income and the criminal gig enterprise seems very unlikely to be filing a tax return or receiving any other support. So that case is interesting, but not very applicable in this equation: he's living on whatever he has this week or this month with very little long term benefit from earnings he cannot use to build a credit score, secure stable housing or invest in a future.