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1 1 (September 2016)

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Key  Points

  *  Implementation problems in welfare reform are not grounds to abandon work tests in
    cash welfare or allow recipients to enter education or training instead of actual work.
  *  Rather, we should restore required work programs in cash welfare and extend such
     programs to food stamps and housing programs.
  * We  should also develop work programs for poor men in connection with child support
    and criminal justice.
  * The Obama  administration tried to weaken work tests in cash welfare and resisted
    developing better mandatory work programs.


A major cause of poverty is simply that few poor
adults, both men and women, work regularly. The
welfare reform of the late 1990s caused millions
of welfare mothers to leave welfare for work,
reducing the rolls by two-thirds and making most
of the leavers better off. As work levels among
poor mothers soared, poverty among children and
minorities plunged to the lowest levels in history.
It was the nation's greatest victory over working-
age poverty since poverty first became a national
issue in the 1960s.
   Success came mainly because many more
welfare mothers than formerly were required to
work as a condition of aid. Equally important,
work meant actual employment rather than going
into education or training. Conditionality and
work first, as these policies became known, were
legislated by the Personal Responsibility and
Work  Opportunity Reconciliation Act (PRWORA)
of 1996. They were embodied in the new
Temporary  Assistance for Needy Families
(TANF)  program. Under the older Aid to Families
with Dependent Children (AFDC) program,
demands  to work and take available jobs had been
far weaker.


   But despite this success, criticism of TANF has
recently mushroomed, and some have suggested
that reform should be reversed. There is in fact no
sound reason for doing that. The best way to raise
work levels among the poor is to maintain and
improve the reform we have-and extend it to
poor men. To do that will require more, not less,
commitment  to good government.

Controversy over Welfare Reform

The new policies were largely the doing of
conservative leaders and thinkers, and they have
remained controversial on the left. Liberal experts
and advocates also wanted more poor adults to
work, but most preferred to promote employment
without enforcing it, and they favored allowing
recipients to enter training or education, the
better to get higher-paying jobs later, rather
making them take existing, lower-paid positions
right away. Those policies had failed to raise work
levels or reduce dependency in the past, which
was why PRWORA   rejected them. But most
liberals stood by them.


AMERICAN  ENTERPRISE INSTITUTE

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