Welfare dependency


Welfare dependency is the state in which a person or household is reliant on government welfare benefits for their income for a prolonged period of time, and without which they would not be able to meet the expenses of daily living. The United States Department of Health and Human Services defines welfare dependency as the proportion of all individuals in families which receive more than 50 percent of their total annual income from Temporary Assistance for Needy Families, food stamps, and/or Supplemental Security Income benefits. Typically viewed as a social problem, it has been the subject of major welfare reform efforts since the mid-20th century, primarily focused on trying to make recipients self-sufficient through paid work. While the term "welfare dependency" can be used pejoratively, for the purposes of this article it shall be used to indicate a particular situation of persistent poverty.

Discourses of dependency and the history of a social problem

Terminology

The term "welfare dependency" is itself controversial, often carrying derogatory connotations or insinuations that the recipient is unwilling to work. Historian Michael B. Katz discussed the discourses surrounding poverty in his 1989 book The Undeserving Poor, where he elaborated upon the distinctions Americans make between so-called "deserving" recipients of aid, such as widows, and "undeserving" ones, like single-parent mothers, with the distinction being that the former have fallen upon hard times through no fault of their own whereas the latter are seen as having chosen to live on the public purse. Drawing this dichotomy diverts attention from the structural factors that cause and entrench poverty, such as economic change. Instead of focusing on how to tackle the root causes of poverty, people focus on attacking the supposed poor character of the recipient. In his 1995 book The War Against the Poor, Columbia University sociology professor Herbert Gans asserted that the label welfare recipient, when used to malign a poor person, transforms the individual's experience of being in poverty into a personal failing while ignoring positive aspects of their character. For example, Gans writes, “That a welfare recipient may be a fine mother becomes irrelevant; the label assumes that she, like all others in her family, is a bad mother, and she is given no chance to prove otherwise.” In this way, structural factors that cause a person to be reliant on benefit payments for the majority of his or her income are in essence ignored because the problem is seen as situated within the person, not society. To describe a person as welfare dependent can therefore be interpreted as blaming the victim, depending on context. The term "welfare-reliant," as used by Edin and Lein, can describe the same concept.

Welfare, long-term reliance, and policy

There is a great deal of overlap between discourses of welfare dependency and the stereotype of the welfare queen, in that long-term welfare recipients are often seen as draining public resources they have done nothing to earn, as well as stereotyped as doing nothing to improve their situation, choosing to draw benefits when there are alternatives available. This contributes to stigmatization of welfare recipients. While the stereotype of a long-term welfare recipient involves not wanting to work, in reality a large proportion of welfare recipients are engaged in some form of paid work but still cannot make ends meet.
Attention was drawn to the issue of long-term reliance on welfare in the Moynihan Report. Assistant Secretary of Labor Daniel Patrick Moynihan argued that in the wake of the 1964 Civil Rights Act, urban Black Americans would still suffer disadvantage and remain entrenched in poverty due to the decay of the family structure. Moynihan wrote, “The steady expansion of welfare programs can be taken as a measure of the steady disintegration of the Negro family structure over the past generation in the United States.” The relatively high proportion of Black families headed by single-parent mothers, along with the high proportion of children born out of wedlock, was seen as a pernicious social problem – one leading to long-term poverty and consequently reliance on welfare benefits for income, as there would be no male breadwinner working while the mother took care of her children.
From 1960 to 1975, both the percentage of families headed by single-parent mothers and reliance on welfare payments increased. At the same time, research began indicating that the majority of people living below the poverty line experienced only short spells of poverty, casting doubt on the notion of an entrenched underclass. For example, a worker who lost his job might be categorized as poor for a few months prior to re-entering full-time employment, and he or she would be much less likely to end up in a situation of long-term poverty than a single-parent mother with little formal education, even if both were considered “poor” for statistical purposes.
In 1983, researchers Mary Jo Bane and David T. Ellwood used the Panel Study of Income Dynamics to examine the duration of spells of poverty, looking specifically at entry and exit. They found that while three in five people who were just beginning a spell of poverty came out of it within three years, only one-quarter of people who had already been poor for three years were able to exit poverty within the next two. The probability that a person will be able to exit poverty declines as the spell lengthens. A small but significant group of recipients remained on welfare for much longer, forming the bulk of poverty at any one point in time and requiring the most in government resources. At any one time, if a cross-sectional sample of poor people in the United States was taken, about 60% would be in a spell of poverty that would last at least eight years. Interest thus arose in studying the determinants of long-term receipt of welfare. Bane & Ellwood found that only 37% of poor people in their sample became poor as a result of the head of household's wages decreasing, and their average spell of poverty lasted less than four years. On the other hand, entry into poverty that was the result of a woman becoming head of household lasted on average for more than five years. Children born into poverty were particularly likely to remain poor.

Reform: the rise of workfare

In the popular imagination, welfare became seen as something that the poor had made into a lifestyle rather than a safety net. The federal government had been urging single-parent mothers with children to take on paid work in an effort to reduce welfare rolls since the introduction of the WIN Program in 1967, but in the 1980s this emphasis became central to welfare policy. Emphasis turned toward personal responsibility and the attainment of self-sufficiency through work.
Conservative views of welfare dependency, coming from the perspective of classical economics, argued that individual behaviors and the policies that reward them lead to the entrenchment of poverty. Lawrence M. Mead's 1986 book Beyond Entitlement: The Social Obligations of Citizenship argued that American welfare was too permissive, giving out benefit payments without demanding anything from poor people in return, particularly not requiring the recipient to work. Mead viewed this as directly linked to the higher incidence of social problems among poor Americans, more as a cause than an effect of poverty:
Charles Murray argued that American social policy ignored people's inherent tendency to avoid hard work and be amoral, and that from the war on poverty onward the government had given welfare recipients disincentives to work, marry, or have children in wedlock. His 1984 book Losing Ground was also highly influential in the welfare reforms of the 1990s.
In 1983, Bane & Ellwood found that one-third of single-parent mothers exited poverty through work, indicating that it was possible for employment to form a route out of reliance on welfare even for this particular group. Overall, four in five exits from poverty could be explained by an increase in earnings, according to their data. The idea of combining welfare reform with work programs in order to reduce long-term dependency received bipartisan support during the 1980s, culminating in the signing of the Family Support Act in 1988. This Act aimed to reduce the number of AFDC recipients, enforce child support payments, and establish a welfare-to-work program. One major component was the Job Opportunities and Basic Skills Training program, which provided remedial education and was specifically targeted to teenage mothers and recipients who had been on welfare for six years or more – those populations considered most likely to be welfare dependent. JOBS was to be administered by the states, with federal government matching up to a capped level of funding. A lack of resources, particularly in relation to financing and case management, stymied JOBS. However, in 1990, expansion of the Earned Income Tax Credit, first enacted in 1975, offered working poor families with children an incentive to remain in work. Also in that year, federal legislation aimed at providing child care to families who would otherwise be dependent on welfare aided single-parent mothers in particular.
Welfare reform during the Clinton presidency placed time limits on benefit receipt, replacing Aid for Families with Dependent Children and the JOBS program with Temporary Assistance for Needy Families and requiring that recipients begin to work after two years of receiving these payments. Such measures were intended to decrease welfare dependence: The House Ways and Means Committee stated that the goal of the Personal Responsibility and Work Opportunity Act was to "reduce the length of welfare spells by attacking dependency while simultaneously preserving the function of welfare as a safety net for families experiencing temporary financial problems." This was a direct continuation of the line of thinking that had been prevalent in the 1980s, where personal responsibility was emphasized. TANF was administered by individual states, with funding coming from federal block grants. However, resources were not adjusted for inflation, caseload changes, or state spending changes. Unlike its predecessor AFDC, TANF had as its explicit goal the formation and maintenance of two-parent families and the prevention of out-of-wedlock births, reflecting the discourses that had come to surround long-term welfare receipt.
One shortcoming of workfare-based reform was that it did not take into account the fact that, due to welfare benefits often not paying enough to meet basic needs, a significant proportion of mothers on welfare already worked "off the books" to generate extra income without losing their welfare entitlements. Neither welfare nor work alone could provide enough money for daily expenses; only by combining the two could the recipients provide for themselves and their children. Even though working could make a woman eligible for the Earned Income Tax Credit, the amount was not enough to make up for the rest of her withdrawn welfare benefits. Work also brought with it related costs, such as transportation and child care. Without fundamental changes in the skill profile of the average single-parent mother on welfare to address structural changes in the economy, or a significant increase in pay for low-skilled work, withdrawing welfare benefits and leaving women with only work income meant that many faced a decline in overall income. Sociologists Kathryn Edin and Laura Lein interviewed mothers on welfare in Chicago, Charleston, Boston, and San Antonio, and found that while working mothers generally had more income left over after paying rent and food than welfare mothers did, the former were still worse-off financially because of the costs associated with work. Despite strong support for the idea that work will provide the income and opportunity to help people become self-sufficient, this approach has not alleviated the need for welfare payments in the first place: In 2005, approximately 52% of TANF recipients lived in a family with at least one working adult.