Question

T/F/U. Under the current welfare system welfare recipients that earn over a set number, receive no welfare. This system discourages welfare recipients from finding wo rk. Explain the incentives at work behind this kind of system and its resultant behavior. Additionally, create your own version of the welfare system that would encourage MORE work. Explain the incentives behind your system.

Answer 1

- The aim of the social welfare system is to prevents citizens falling below a minimum standard of living, by providing benifits like food stamps, Medicaid health care for poor, housing benefits, and unemployment payments,disability payments, aid to children and the elderly.

- In the U.S there are various programmes under the welfare scheme like food stamps, Medicaid health care for the poor, housing benefits, unemployment payments, including food stamps, disability payments and temporary Assistance for Needy Families (TANF) is a cash assistance for single parents on low incomes.

- The federal poverty level for an individual in U.S in 2017 was $12,060 and for a married couple with one child it was $20,420. Thus the size of the household and an individual's income are the determining factor for qualifying for welfare benifits.
- Welfare can create a pattern of dependence for some individuals or households, since every need is met, there is no incentive to find a job (or a better paying job) to improve their standard of living. That is why many welfare programs put limitations to the amount of access that is provided.

-Pros of the present Welfare system :
- Welfare system provides benifits like food stamps, Medicaid health care for poor, housing benefits, and unemployment payments,disability payments, aid to children and the elderly.
- It also helps to reduce crime rates, by helping people in difficult times.
- To help the Children, because they cannot take care of themselves and also to help parents to look after their children in difficult situations.
- Medicaid allows people without insurance or very low income to have access to quality health care.

Cons of present Welfare system:
- A lot of people try to take advantage of this system and prevents a household with a genuine need from receiving aid.
- As mentioned earlier it provides incentive for some people to not find a job and creates dependency on welfare.

- Reform in welfare system:
It has been seen that over the years, welfare has become a way of life for some of its recipients and has created a culture of dependency.
      Republican speaker of the House Of Representatives, Paul Ryan once said “Our goal must be to help people move from welfare into work and self-sufficiency.”
- Skill development programmes: Many welfare programs don’t address the root cause of poverty like unemplyment. Thus welfare programs providing job training to the unemployed to improve their skills or teach new skills to match with the current job markets and industrial requirements, should be implemented.
- Reforming the public education system: The United States has one of the largest education subsidy programs in the entire world. But they severly lack in providing quality education. Reform in public education will attract more people to public schools and also help in reducing crime rate by increasing employment rate.
- The "Personal Responsibility and Work Opportunity Reconciliation Act" of 1996 is a "welfare reform" law that requires states to ensure that welfare recipients are looking for work. The law also includes comprehensive child support enforcement and gives financial incentives for families to move from welfare into the workforce. This be implemented properly will reduce dependency on welfare.