More

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
Philip N. Cohen

Philip N. Cohen

Posted: December 29, 2009 09:02 AM

Welfare Doesn't Keep Up

What's Your Reaction:

The Federal welfare program, Temporary Assistance to Needy Families (TANF), has not kept up with the growing number of poor people in need of assistance. The Obama stimulus plan included $5 billion to help states cover increasing TANF costs expected with the recession, but only $1 billion have so far come through.

TANF rolls fell continuously from 2006, when President Clinton's welfare reform tightened eligibility restrictions, all the way until July 2008 - more than a year after unemployment rates started heading upward. Now TANF numbers are climbing rapidly. Given the onerous restrictions, stingy payments, and heavy social stigma, this truly reflects the desperation of those with nowhere else to turn.

Source: My chart from U.S. Department of Health and Human Services, various tables.

The Wall Street Journal suggested three reasons TANF enrollment was slow to respond: (1) The extension of unemployment benefits by Congress, which are easier to collect and pay better, for those who lost jobs; (2) the concentration of job losses among men, while most TANF families are led by single mothers, and; (3) the low income eligibility cutoffs, many of which haven't been adjusted upward in years, and other eligibility hurdles that make other forms of assistance more available. The Food Stamp program, on the other hand, has proven more responsive, adding nearly 10 million people since December 2007.

I previously wrote:

From 1996 to 2007, the number of single-parent families with children living below the poverty line fell by a whopping 2.5%. Who says there's no progress in America? During the same period, however, there was a 60% drop in the number of families receiving welfare under TANF. Some of them got jobs during the roaring 1990s, and some of them got the boot when they reached their term limits.

As unemployment lags the recovery, the job market is crunched. The women on TANF may not fare well in the labor queue with all the more-experienced people trying to get back to work. What will happen to them when they reach their term limits?

 
 
 
  • Comments
  • 14
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Recency  | 
Popularity
04:33 PM on 12/29/2009
Not sure what the author is stumping for, a return to the welfare state?

Isn't it better (for government) to be working day & night to get the economy growing again, so that companies feel confident enough to return to hiring?

Rather than bemoan the lack of welfare dollars, how about some forward thinking:

1) Eliminate the Federal minimum wage - the higher the wage floor is set, the more expensive labor becomes & the less likely the very people needing welfare assistance will be able to find a job. This leaves more flexibility to the states to determine their citizens needs.

2) Postpone health insurance reform and cap & trade bills until the economy is on solid footing and revisit them then. These legislative threats simply discourage companies from hiring.

3) Suspend the collection of SS & Medicare taxes for 1 year (pay benefits out of the accumulated trust funds for a year) - BWAHAHAHA! Just kidding on that one, we all know there ain't no trust funds, just an ever faltering Ponzi scheme.

4) Shrink the size of government and the productive capacity it robs from the economy; to start, eliminate the depts of Energy, Labor, Education and HUD (I'm dreaming here)

Regardless, turning to the failed policies of the past is no way to solve joblessness and underemployment.
HUFFPOST SUPER USER
worldlyhick
05:08 PM on 12/29/2009
Surely they make little harnesses to fit the five to nine year old set. To be sure a team of 10 of 12 of them could pull a few rich behinds arond the city. Save on gas!
HUFFPOST SUPER USER
worldlyhick
03:59 PM on 12/29/2009
By all means let's continue to be cruel to poor women and children while we pat the well fed rears of the wealthy.

I wonder how many families are living under conditions of extreme poverty in this country now. What has been happening all along to people depending on social help to get by. Who takes care of the children while these people work for very little money, I wonder.
04:39 PM on 12/29/2009
Why did they have those children if they couldn't afford them? What are they doing to improve their skill sets so that they can attain more than a minimum wage job, or be unemployable? Where are their families, their neighbors, their churches?

What if the government were 60-70% of its current size, and the money that reduction represents were back in the hands of the citizens who produced it? How many more jobs might be available?
How much more money might people be willing to donate to charities to help the poor, had not the government taken it first?
HUFFPOST SUPER USER
worldlyhick
05:04 PM on 12/29/2009
Where are the workhouses, the prisons?

What pointless questions that indicate a total lack of understanding of the many tragedies that can befall families. What a shame.
HUFFPOST SUPER USER
masher
software engineer
12:53 PM on 12/29/2009
If we can't secure our borders then how can we ever take care of our poor? Until we can take care of the basics like national security we will never be able to handle "great society" projects.

Those who fight for amnesty and fight against e-verify are helping to end all the welfare programs.
photo
HUFFPOST PUNDIT
Gidster
Not so much Liberal as I am anti evil.
12:23 PM on 12/29/2009
There is a program in Indiana called "Impact" and it is basically a coercive tool to get people off of the TANF rolls.

Under the program you are compelled to do a documented job search for 30 hours a week or lose your benefits, not just limited to TANF, but your food stamps and Medicaid are also on the line. So you get onto the welfare rolls only to be eliminated from them for noncompliance or by getting a minimum wage job......

There is a benefit for unskilled workers in a normal economy, but when there are six people for every job in America right now.......
04:43 PM on 12/29/2009
Coercive tools? If they need to be coerced off the rolls, then the sooner the better.

Since they are unemployed and receiving assistance, shouldn't they be spending all their waking hours looking for work? 30 is lenient.
photo
HUFFPOST PUNDIT
Gidster
Not so much Liberal as I am anti evil.
04:05 PM on 12/30/2009
Dolt!

The hours are judged very strictly. You only recieve credit for the time you spend filling out the applications, travel time is scrutinized ridiculously.

How many applications does it take to make that 30 hour mark? At 15 minutes each that is about 120 applications a week, Do you live near 120 businesses that are hiring every week?

Also there is the putative side of it, 30 hours a week times 4 weks is 120 hours, and at $200 a month for TANF that comes to about $1.60 an hour. That means the entire amount is spent on travel expenses.

You have no idea, other than your blatant and callous disregard for the poor.
photo
HUFFPOST BLOGGER
Philip N. Cohen
07:01 PM on 12/29/2009
The work requirements seem like a cruel joke in labor markets that have many unemployed people with better skills than poor single mothers. The requirement is punitive at that point.

By one interpretation, welfare is paying mothers to do the productive work of raising children - work that benefits everyone, hopefully. I'm pretty happy with that as a spending priority (especially given the alternatives).