1. At the time of welfare reform, some argued that it would effectively reduce p
ID: 3184648 • Letter: 1
Question
1. At the time of welfare reform, some argued that it would effectively reduce poverty in America. These advocates argued that the term limits placed on benefits would effectively encourage welfare recipients to eventually gain higher-paying jobs that w Such incentives would lower the need for welfare, prune beneficiaries, restrict government aid, and reduce poverty rates among childr Others argued that it would lead to unprecedented misery in the US. They argued that limiting benefits without providing sufficient support to help welfare clients overcome the other obstacles would simply leave millions of families without the means to escape poverty. At best, welfare recipients might find jobs, though ones whose wage is too low to escape poverty. At worst, increasing numbers would find themselves deep in poverty left to fend for themselves. While good economic times might bring enough jobs to mitigate the worse miseries, periods of recession would show how incapable the social safety net would be in offering meaningful help. Your job is to use the evidence provided by hindsight to untangle what appears to be the actual consequences of welfare reform. find employment, obtain needed training, and ould elimi on benefits. en and in population in general. To give you some needed context, welfare reform occurred in 1996 and was enacted in 1997. The reform included many, many pieces of which we will focus on a few. The old welfare program AFDC (Aid to Families with Dependent Children) was renamed TANF (Temporary Assistance to Needy Families). Term limits were placed on welfare recipients. Recipients could not receive benefits for more than 2 years consecutively and for more than five years total. Limited exceptions to these limits were given. The program was transformed from an entitlement program to a block grant program. Use the evidence given below to support your answer. Evaluate at least six of the arguments given above either in support or in criticism of welfare reform. Make sure to support yourExplanation / Answer
solution:
The reform which was introduced by the Government of America will encourage people to work because the "no income" group will now see that the opportunity cost of working / earning is too great. People falling under the "no income" bracket will start understanding that with a little income, not only will they start earning income but also be able to keep a larger part of their welfare payments. Therefore, this system will definitely affect the incentive to work for the no income bracket.
Efficiency is concerned with the optimal production and allocation of resources given existing factors of production whereas is equity is concerned with how resources are distributed throughout society. In the given case, the welfare reform maybe efficient as it provides an incentive for the no income group to work but at the same time, the resources (welfare payments) are not being distributed evenly in the economy which affects the equity.
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