Session 9: Policy Responses

What do you think is being done about poverty?

This weeks session I learned about the welfare reform program and the tax credits.

In 1930  Roosevelt proposed the New Deal  Program in which government put people to work which helped restore public confidence in the nations institute.

The Social Security Act of 1935 proposed 2 types of poverty programs:(which is the current welfare program)
Social Insurance which is not based on income
Public Assistance which is based on income


1996 Reform of Welfare

Clinton and conservatives believed welfare had failed because people werent getting the skills they needed to go to work. They believed the more you do for you and you'll do more for yourself.

Gingrich and Conservatives believed non marital births was the real welfare problem and they believed by ending welfare the poor would do more for themselves.

Clintons welfare program didnt pass because he took too much time to pass and because it was too costly.

When the Republicans won a majority in the Congress. They took Clintons welfare reform agenda and made it their own.

1996 Welfare Reform Law
*Provided 2 grants:
-Family assistance block grant: provided cash to families, helped families go to work, reduced out of wedlock pregnancies and increased 2 parent families.
-Child care block grant: helped families leave welfare or avoid receiving public assistance.

RESTRICTIONS:
-Legal immigrants was not eligible during the first 5 years of being in the US
-5 year limitation on cash assistance
-60 month time limit
-Prohibited assisting minor parent unless they were in school.

Did It Work?

Between 1994 and 2000 the poverty rates fell
Employment rates among single mothers increased from 60% to 1994 to 72% in 1999.


Tax Increase
There was a tax increase in the maximum credit that youcan get for quailifiying children on your tax return:
$5,666 with 3 or more children
$5,036 with 2 or more chidren
$3,050 with one child
$457 with no qualifying child