Welfare Reform, from the Horse's Mouth

Max Sawicky sawicky at epinet.org
Fri Jan 12 12:26:15 PST 2001


"Two of the most impressive achievements of the past 8 years have been the reduction in the number of Americans receiving welfare, and the increase in the numbers of current and former welfare recipients who are working. . .

. . . The 1996 reforms have undeniably been successful in reducing the number of people receiving welfare. But reductions in caseloads are not the only measure by which to judge the reforms: the well-being of the millions of former welfare recipients is at least as important. Much of what we know about outcomes for welfare leavers comes from studies undertaken in individual States. . . .

. . . Welfare leavers are unlikely to thrive in the workplace if they are no better off financially than they were before leaving the welfare rolls. Evidence from State studies indicates that, at least initially, few leavers are significantly better off. . .

. . . For 44 percent of leavers, household income plus food stamps in the year following exit was more than $50 per month higher than in the months before; for 49 percent it was at least $50 lower. . . . "

. . . Enrollment in the food stamp program has fallen dramatically since 1994, from a high of 27.5 million participants to 18.2 million in 1999, in part because of the strong economy. Of concern, however, is the fact that the participation rate for eligible families declined from 71 percent in September 1994 to 62 percent in September 1997. This decline is particularly marked for families with children. In 1999 only 51 percent of children in families with incomes below the poverty line received food stamps. Even among the very poorest children—those in families with incomes less than 50 percent of the poverty line—data indicate that only 58 percent received food stamps in 1999, down from 76 percent in 1993. . . .

Chapter 5, Economic Report of the President, 2001

[note: a "leaver" is someone who joins the caseload of Temporary Assistance for Needy Families (formerly AFDC) and separates from the program, either voluntarily or otherwise. It does not include those who never enter the program, who might have under other circumstances.]



More information about the lbo-talk mailing list