Why I Was Wrong About Welfare Reform

because the embarrassing truth is that welfare reform has resulted in a layer of destitution that echoes poverty in countries like Bangladesh.

.. Recent research finds that because of welfare reform, roughly three million American children live in households with incomes of less than $2 per person per day, a global metric of extreme poverty.

.. There are now more postage stamp collectors in America than there are families collecting cash welfare, and so kids like Hailey grow up in chaotic households in which there is simpy no money.

.. roughly three million American children live in households earning less than $2 per person per day.

.. Rather, let’s build new programs targeting children in particular and drawing from the growing base of evidence of what works.

.. 70 percent of pregnancies among young single women are unplanned

Ending Welfare as We Know It

Americans need to watch closely some promising experiments in Europe and Canada.

Instead of tinkering around the edges of the welfare state, trimming a billion dollars here, adding a work requirement there, why not simply abolish the entire thing? Get rid of welfare, food stamps, Medicaid, housing assistance, unemployment insurance, and all the rest.

.. The federal government alone, for instance, currently funds more than 100 separate anti-poverty programs, overseen by nine different cabinet departments and six independent agencies.

.. Because current welfare benefits are phased out as income increases, they in effect create high marginal tax rates that can discourage work or marriage. Studies have shown that a person on welfare who takes a job can lose as much as 95 cents out of every dollar he earns, through taxes and forgone benefits.

.. If everyone in the United States were to receive a benefit sufficient to bring him above the poverty threshold, it would cost roughly $4 trillion, more than our entire current federal budget.

.. Once we’ve established the principle of guaranteeing people money, we will still be constantly haggling over the amount.

 

Is Vast Inequality Necessary?

Reading someone like Mr. Graham, you might imagine that America’s wealthy are mainly entrepreneurs. In fact, the top 0.1 percent consists mainly of business executives, and while some of these executives may have made their fortunes by being associated with risky start-ups, most probably got where they are by climbing well-established corporate ladders.

.. This may in part be because a strong safety net encourages risk-taking

Why poor areas vote for politicians who want to slash the safety net.

The people in these communities who are voting Republican in larger proportions are those who are a notch or two up the economic ladder — the sheriff’s deputy, the teacher, the highway worker, the motel clerk, the gas station owner and the coal miner. And their growing allegiance to the Republicans is, in part, a reaction against what they perceive, among those below them on the economic ladder, as a growing dependency on the safety net, the most visible manifestation of downward mobility in their declining towns.

 

.. But this didn’t make her a lasting supporter of safety-net programs like those that helped her. Instead, Ms. Dougherty had become a staunch opponent of them. She was reacting, she said, against the sense of entitlement she saw on display at the dialysis center. The federal government has for yearscovered kidney dialysis treatment in outpatient centers through Medicare, regardless of patients’ age, partly on the logic that treatment allows people with kidney disease to remain productive. But, Ms. Dougherty said, only a small fraction of the 54 people getting dialysis at her center had regular jobs.

.. At least when she got her tuition help, she said, she had to keep up her grades. “When you’re getting assistance, there should be hoops to jump through so that you’re paying a price for your behavior,” she said. “What’s wrong with that?”

.. Where opposition to the social safety net has long been fed by the specter of undeserving inner-city African-Americans — think of Ronald Reagan’s notorious “welfare queen” — in places like Pike County it’s fueled, more and more, by people’s resentment over rising dependency they see among their own neighbors, even their own families.

.. “If you need help, no one begrudges you taking the program — they’re good-hearted people. It’s when you’re able-bodied and making choices not to be able-bodied.”

.. There has been a particularly sharp drop in support for redistribution among older Americans, who perhaps see it as a threat to their own Social Security and Medicare.

.. researchers such as Kathryn Edin, of Johns Hopkins University, found a tendency by many Americans in the second lowest quintile of the income ladder — the working or lower-middle class — to dissociate themselves from those at the bottom, where many once resided.

.. “I remember being in the room when Jennings was asked whether or not Republicans were afraid of the electoral consequences of displacing 400,000-500,000 people who have insurance,” State Auditor Adam Edelen, a Democrat who lost his re-election bid this year, told Joe Sonka, a Louisville journalist. “And he simply said, ‘People on Medicaid don’t vote.’ ”