The US enacted the Clinton-Gingrich welfare reform in the midst of the largest postwar expansion in four decades. It was not put to the test for many years, and really not until the Great Recession. And now we’re seeing that it doesn’t work for most of those who need it.
The simple problem is that cash welfare rolls have not expanded despite a significant expansion in need. Because the program operates as a block grant, it does not increase as the number of potential recipients increases. And the states have the ability to do with the program as they please, including dropping the rolls even now.
Most states seem more interested in limiting the rolls to “prove” that the program succeeds in getting people off it and into work and also to reduce spending amidst a budget crisis. So you have a desperate need for counter-cyclical spending to keep people afloat, with a cyclical program that rises and falls with the economy. This is particularly difficult on single mothers. Here are some of the real stories of what welfare recipients do in absence of the program benefits:
Esmeralda Murillo, a 21-year-old mother of two, lost her welfare check, landed in a shelter and then returned to a boyfriend whose violent temper had driven her away. “You don’t know who to turn to,” she said.
Maria Thomas, 29, with four daughters, helps friends sell piles of brand-name clothes, taking pains not to ask if they are stolen. “I don’t know where they come from,” she said. “I’m just helping get rid of them.”
To keep her lights on, Rosa Pena, 24, sold the groceries she bought with food stamps and then kept her children fed with school lunches and help from neighbors. Her post-welfare credo is widely shared: “I’ll do what I have to do.”
That last one reveals a new reality. Food stamps are a mandatory benefit, where spending rises with eligibility. So as the welfare rolls have dropped, the food stamp rolls have expanded massively, almost in inverse proportion. The two programs used to rise and fall together until welfare reform in 1996. So naturally, the next thing Republicans want to do is to block grant programs like food stamps and Medicaid.
This is what we’re talking about when we say “safety net.” The Great Recession shrunk the pool of available jobs. Without them, and without cash transfers like welfare, the poor and unemployed have even less chance of making ends meet. Jared Bernstein writes:
If welfare reform is so effective at putting people to work, why did it seemingly stop working 12 years ago? Because it’s architecture is that of a fair-weather ship—take the wind of full employment out of its sales and it founders on the shoals. And in this shipwreck, women and children don’t get away in the lifeboats. To the contrary, they risk drowning.
And in a kind of follow-up, the Times notes today that funding for job training, in large part for this same group of people, is fading away:
Across the country, work force centers that assist the unemployed are being asked to do more with less as federal funds dwindle for job training and related services.
In Seattle, for example, the region’s seven centers provided training for less than 5 percent of the 120,000 people who came in last year seeking to burnish their skills. And in Dallas, officials say they have annual funds left to support only 43 people in training programs, nowhere near enough to help the 23,500 people who have lost their jobs in the last 10 weeks alone [...]
Federal money for the primary training program for dislocated workers is 18 percent lower in today’s dollars than it was in 2006, even though there are six million more people looking for work now. Funds used to provide basic job search services, like guidance on résumés and coaching for interviews, have fallen by 13 percent.
We are starting to see very keenly what a country looks like under a system of, to borrow a phrase, social Darwinism, where government plays no role in giving its citizens help when they need it. Slowly but surely, those sources of help are being chiseled away.





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If Obama gets re-elected and the GOP accepts his “Grand Bargain”, the American social safety net will be cut. Medicare, Medicaid and Social Security will be curtailed and diminished, leading to lower quality of life for most Americans. And what are the chances that, once cut, those welfare programs and social benefits will ever be restored? Close to zero, I’d say. Consider that when deciding whether Obama or Romney will do more damage to Progressivism.
This was predictable. When it was passed in the 1990s, I wondered how long it would take for this problem to show up.
Many of us who have been cleaver enough to notice the 3 decades-long complicity of the Democratic party with neo-liberalism, said this would happen. Marian and Peter Edelman resigned from the Clinton Administration over “welfare reform.”
How sad that almost two decades later, not only have the Democrats refused to acknowledge and remedy their collusion, but have doubled down on their treachery through the trojan horse of Obama’s presidency.
Who are YOU going to vote for?
I wrote at the time (April 1997)
It was my job to forecast the U.S. economy, which included the implications of policy, and not my job to unearth the agenda behind the policy. So that was as close as I could come to saying, in a Wall St. context: WTF is this stupid move all about.
sarcasm
“The Churches will step in and meet everyone’s needs.”
/sarcasm.
I appreciate your efforts then and now, eCAHN. A good friend of mine was a chief administrative assistant to Norman Dicks at the time and did what she could to head the legislation off at the pass. She left that job eventually. Being Greek, she landed (unfortunately) in Max Baucus’s office, which was even worse, apparently. Ultimately she left The Hill and now works for a think-tank dedicated to saving Social Security.
and so it goes…
I’ve been raising chickens to trade for goods and services!
I was naive then, too. I had no idea about the neolibrul barely hidden agenda to loot the economy for the benefit of the wealthy. Looking back, I wonder why I didn’t see it bc it’s so obvious in retrospect. They started with the poorest bc they have the least ability to fight back.
Raising chickens is the new in thing. Front page of last Wed NYT dining section.
“Who are YOU going to vote for?”
Greens and Socialists and other actual leftists. Simple answers to simple questions.
As evidenced by Esmeralda, Maria, and Rosa, three single mothers with 8 kids among them, cutting welfare doesn’t work.
There is a good reason that many places prohibit backyard chicken coops. Early morning crowing is not generally welcome in the suburbs.
I was being sarcastic. I hadn’t seen the NYT piece. Off to find it.
Me too, Tom.
It does seem that simple, doesn’t it?
Alas…
You know, it’s interesting that you say that. I have been ruminating recently about how the American People can liberate ourselves from the oppression of the political duopoly. The most immediate and dramatic impediment is our total reliance on the established mode of economic exchange. If we could begin to implement an alternative mechanism for exchanging necessary goods and services we might go a long toward reclaiming our autonomy and declaring our independence.
I thought everyone was raising chickens to trade for basic healthcare. *smirk*
Oh yeah. My kids are at the dentist having their regular checkup and cleaning this morning. I’m trading 2 dozen eggs and some gizzards.
I think you’re right. Growing some of our own produce and raising poultry and other meats would be a huge step.
The big obstacle there would be the major population centers with zoning laws that forbid this. Urban areas, where most of our people are concentrated, wouldn’t be able to take strides in this direction as easily as someone in a suburban or rural area.
Here’s the link.
Yer getting ripped off. I only pay a dozen eggs and bag of downy feathers.
We were all naive back then, eCAHN and when I say we saw it coming, well… what we saw was coming through lenses that still couldn’t fathom a complete capitulation by the Dems, even as it was happening. It took almost two decades for the Democrats to finally move so far right that they could no longer conceal their true motives.
Ecce Obama
Thanks. Great article. I’m kind of considering raising hens now.
But it’s two kids! And one of them needs x-rays.
Dude. Save the gizzards in case someone needs a root canal.
I was also looking at the IMF/WB treatment of third world countries in financial difficulty in the 1990s and saying to myself WTF is austerity all about. Everyone knows that will make the financial crisis worse, etc etc. IOW I had sooo much evidence, but never put it together. Didn’t realize how evil the wealthy would be.
On edit: Malaysia slapped on exchange controls & thumbed their nose at the IMF and came out relatively better than other countries.
Looting those countries is how Soros made his billions.
My neighbors up the hill have a whole menagerie, including chickens. About a month or so ago, I asked for eggs, and they were scarce. Noa brought me a whole dozen & a half yesterday, as hens are now laying like crazy. Seasonal, like spring is rebirth in most plants & animals.
Yeah…
Soros…
there’s a slippery slope…
and indeed, haven’t all the folks who’ve thumbed their noses at the IMF come out better? I can think of a few places in South America…
and, whereas the IMF wasn’t hands-on there, the Danes basically rejected the favored “austerity” of neo-liberal ideology, too. I think they’re glad they did and are clearly better of for their collective wisdom.
The problem is real- but calling the current program “the Clinton-Gingrich welfare reform” is a bit over the top unless this is just an early shot to keep Hillary off the ticket (odd that since she does not even plan to attend the nomination convention)
First as to the current program’s new work rules, capping federal spending to a budgeted amount and allowing states to make their own rules on who gets aid despite the Federal Government giving them the money, relative to the old programs Aid to Families with Dependent Children’s unlimited matching funds, few rules and no time limits on benefits for the states to get the money, with more extensive appeal rights.
As eCHAN notes “welfare” was affordable – only 0.3% of GDP and 1.2% of federal spending, but I doubt anyone believes the State GOP folks would not cut welfare in a downturn – even if it meant rejecting Federal Aid. And if you have ever been close to families that were on welfare – close to them for decades – you’d know that the idea of motivating and training folks toward the goal of decreased dependency is not a bad thing. Not funding folks’ basic needs is a bad thing. The Welfare reform did make it easier to not fund, but it did not cause the non-funding.
Indeed Clinton did not propose a welfare reform bill and in 1994 was called out on that fact by Gingrich who said Clinton was stalling on welfare, saying the Congress could pass a welfare reform bill in as little as 90 days. Of course each of the first two GOP welfare reform bills were vetoed by Clinton, but by 96 the Dems in Congress had joined with the GOP to provide a veto proof majority for the GOP’s 3rd try -the new Personal Responsibility and Work Opportunity Act – that gave the states more autonomy over welfare delivery, while also reducing the federal government’s responsibilities, as a new Federal Program, the “Temporary Assistance for Needy Families” placed time limits on welfare assistance and replaced the longstanding Aid to Families with Dependent Children program, as it added stricter conditions for food stamp eligibility, reductions in immigrant welfare assistance, and recipient work requirements. Gingrich got Clinton to sign only after loosening up many of the restrictions originally in the GOP proposal.
I am curious if there is an Obama quote on the 96 law?
I thought people were raising their own chickens due to the report that the govt. was “relaxing” their inspections of the factory farms.
I was working in social services back when this so-called welfare reform passed. I said back then it would be a disaster. Yes – they got everybody “off” the rolls. But at what cost? All the “reformers” seem to forget that the money in this program was for the CHILDREN in these families. So they are now living in cars, under bridges, in shelters. No medical care, no homes, fractured access to education, even more disruption in their social and family lives – what’s not to love? I have never understood why there was money to pay for someone else to care for these kids while the mothers go work at some minimum wage job but paying this same mom to stay at home and take care of her own kids….well that’s just too…well fill in the demeaning and derogatory blanks here.
And of course as soon as they could, all the child care subsidies dried up so now the minimum wage jobs don’t even cover the cost of the child care.
We calculated that in our county – a “welfare” mom would have to get a job with a starting wage of about $9.87 per hour with full medical/dental/vision policy for her and her kids in order to equal what she was receiving in cash, housing assistance and medicaid under the old AFDC program for 2 kids. That was back when the minimum wage was $5.25. What a joke – especially since the average “welfare” mom had not graduated from high school and had literally no marketable skills other than taking care of kids. And under AFDC she was not allowed to receive AFDC while attending a 4-year college. Way to keep ‘em down! (BTW – that same rule still applies to TANF!)
Also, if you get a scholarship for any part of your books or tuition – you must report that and it is deducted from your cash grant. Talk about a Catch-22. These individuals are the most qualified for Pell Grants – but if they take one to go to school so they can actually have a better future – they lose all their benefits – including the medical benefits for themselves AND their children while they do so.
Of course the Rethugs are in the process of cutting Pell Grants too. Don’t want any poor people getting anything that might allow them to pull themselves up by any bootstraps at all. Let’s just take away the boots altogether.