This is an archived page of The American Prospect. For other pages: Print Issue Online Articles Tapped Home ... Moving Ideas Network The Hidden Paradox of Welfare Reform By Christopher Jencks Issue Date: 0.0.00 Print Friendly Email Article W hen Bill Clinton first sought the presidency, he promised to "end welfare as we know it." Instead of letting single mothers stay home until their children were fully grown, he argued that mothers who sought government help should go to work within two years. Polls showed overwhelming popular support for this change, but there were two big problems. First, some welfare recipients are only marginally employable. Second, welfare mothers who find jobs mostly earn between $5 and $7 an hour. Since that is not enough to support a family, they still need help paying their bills if they are to keep their families together. The Personal Responsibility and Work Opportunity Reconciliation Act, which the Republican Congress passed and Clinton signed last summer, assumes that raising the minimum wage to $5.15 and expanding the EITC will suffice to ensure that all working mothers can pay their bills. The law deals with mothers whom nobody wants to hire by allowing states to exempt up to 20 percent of their caseload from its five-year lifetime limit on welfare receipt. These solutions reflect the usual triumph of hope over experience. Raising the cost of altruism almost always reduces its frequency. Once legislators digest the fact that cutting TANF outlays by a dollar will add a full dollar to the funds available for more popular programs like schools, convention centers, or tax cuts, single mothers' share of their state's budget will almost inevitably shrink. Since the federal block grant will not rise with inflation, its real value will also shrink. To get out of the resulting fiscal bind, states will have to tighten their time limits, let benefits lag behind inflation, or both. More than a third of the states have already adopted time limits more restrictive than the ones Congress mandated. As the fiscal crunch intensifies, more and more states will presumably follow this path. | |
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