How Does The Welfare System Work?

I have always been curious about the functions of Welfare. I don’t want to hear bashing of any sort. I truly want to know everything about it and how it functions before I even develop an opinion on it. I prefer to know my facts before stating my opinion on something. I’m barely turning 19 and I’m trying to learn my facts first before I say anything. (My generation is infamous for talking out of their cahoots about matters they know nothing about.) Once again please no bashing. This is just for knowledgable reasons.

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3 Responses to “How Does The Welfare System Work?”

  1. ? says:

    Welfare is the provision of a minimal level of well-being and social support for all citizens, sometimes referred to as public aid. In most developed countries, welfare is largely provided by the government, in addition to charities, informal social groups, religious groups, and inter-governmental organizations.
    Welfare systems differ from country to country, but Welfare is commonly provided to individuals who are unemployed, those with illness or disability, the elderly, those with dependent children, and veterans. A person’s eligibility for Welfare may also be constrained by means testing or other conditions.
    Subsidy
    Subsidizing a good is one way of redistributing the good to the poor. It is money that is paid usually by a government to keep the price of a product or service low or to help a business or organization to continue to function. In a budget constraint between ‘all other goods’ and a ‘subsidized good’, the maximum amount of ‘all other goods will remain the same but the budget constraint will shift outward for the ‘subsidized good’ can lead to an over consumption of the good.
    Voucher
    A voucher is like a subsidy that can only be consumed in a specific way like a school voucher or section 8 housing. For instance, families who receive school vouchers may only use them to send their children to schools to help pay tuition costs. Schools then exchange the voucher for cash. Similarly, in section 8 housing, families with this voucher can only use the voucher to pay a portion of their living costs in specified units or in a private sector. In a budget constraint between ‘all other goods’ and a ‘voucher good’ our budget constraint will shift out parallel to an amount equal to the amount of the voucher but the money we have to spend on ‘all other goods’ remains capped at the same amount we had to spend before the voucher. Voucher programs can make us worse off because of the cap on our ability to spend on ‘all other goods’ our indifference curves could limit us.
    Direct Cash
    This is straight cash with no restrictions on how it can be consumed. Direct cash may cause greater budget constraint because the recipient can spend the cash subsidy on all ‘other goods’ or on a ‘subsidized good’. Direct cash increases the entire budget constraint and shifts the indifference curves outward allowing us to maximize individual utility.
    In the United States, “welfare” is most often used to refer to means-tested cash benefits, especially the Aid to Families with Dependent Children (AFDC) program and its successor, the Temporary Assistance for Needy Families Block Grant. Sometimes, especially by critics of government social spending, it is used to refer to all means tested programs, including for example, healthcare through Medicaid and food and nutrition programs (SNAP).
    AFDC (originally called Aid to Dependent Children) ADC was created during the Great Depression to alleviate the burden of poverty of families with children and allow widowed mothers to maintain their households. (New Deal employment program such as the [Progress Administration] primarily served men.) Prior to the New Deal, anti-poverty programs were primarily operated by private charities or state or local governments; however, these programs were overwhelmed by the depth of need during the Depression. The United States has no national program of cash assistance for non-disabled poor individuals who are not raising children.
    In 1996, the Personal Responsibility and Work Opportunity Reconciliation Act changed the structure of Welfare payments and added new criteria to states that received Welfare funding. After reforms, which President Clinton said would “end Welfare as we know it”, amounts from the federal government were given out in a flat rate per state based on population. Each state must meet certain criteria to ensure recipients are being encouraged to work themselves out of Welfare. The new program is called Temporary Assistance for Needy Families (TANF). It encourages states to require some sort of employment search in exchange for providing funds to individuals, and imposes a five-year lifetime limit on cash assistance.
    This is what I know about “welfare”. “Welfare” as everyone knows of is not actually welfare. Welfare programs are Supplemental Security Income (SSI) program provides stipends to low-income people who are either aged (65 or older), blind, or disabled. The Temporary Assistance for Needy Families (TANF) provides cash assistance to indigent American families with dependent children.
    All other programs are considered social programs which everyone has now come to view as “welfare”.
    Hope this helps satisfy your curiousity.

  2. linda says:

    I’m on welfare at present and I have no kids and I was laid off my job and am drawing unemployment plus welfare/ food stamps of 200 per month. However, if you have kids you can not only get food aid but you get housing and medical care too. The state and federal government covers pretty much everything. You don’t have to work.

  3. Psychobe says:

    It doesn’t.

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