Question

In: Economics

Paraphrase below please! ----------------------------------------------- Many of the changes in the welfare system have already reduced and...

Paraphrase below please!

-----------------------------------------------

Many of the changes in the welfare system have already reduced and may continue to reduce the number of people receiving welfare. For example, under the current reforms, states receive block grants from the federal government to help finance their welfare programs.   This system allows states to save money if they spend less in benefits: reducing benefits does not reduce the amount of federal money they receive. Time limits will also, by definition, reduce the number of people in the program. Allowing beneficiaries to keep their Medicaid coverage if they find a job can also encourage people accepting employment with companies that do not provide health care coverage. Leaving new immigrants without welfare benefits can reduce new welfare rolls as well. Some of the provisions of the reform are directly aimed at discouraging unwed motherhood, including family caps and requirements that teenage mothers live with their parents and stay in school

Solutions

Expert Solution

Recent reforms are targeted to reduce the number of people receiving welfare from the government. Now the states will be receiving a bulk finances which has to be distributed to the people, it will be an untied fund from the federal government where the states can save a huge amount of they are giving less amount to people. If the states are giving less money it will not affect the amount they are receiving from the federal government.

Second, the changes in the definition of the time limits will also reduce the number of people getting benefits. Now people are allowed to keep the same medical benefit after getting a job. This will increase the number of people taking up jobs where they will not receive any medical benefit. Apart from all these leaving new immigrants without benefit will also reduce the number of people under such welfare program.

Measures such as Family caps and requirements like teenage mother live with their parents and stay in school as some of the provision of the reform which is already raising concerns.


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