Tag Archives: Welfare Reform

Kansas enacts law to attach work requirement to welfare benefits

Kansas governor Sam Brownback
Kansas governor Sam Brownback

This story is from the Daily Signal, and it’s about a new (April 2015) Kansas law that produced great effects in the last year.

It says:

Over the past several years, the number of Americans on food stamps has soared. In particular, since 2009, the number of “able-bodied-adults” without dependents receiving food stamps more than doubled nationally. Part of this increase is due to a federal rule that allowed states to waive food stamps’ modest work requirement. However, states such as Kansas and Maine chose to reinstate work requirements. Comparing and contrasting the two approaches provides powerful new evidence about the effectiveness of work.

According to a report from the Foundation for Government Accountability, before Kansas instituted a work requirement, 93 percent of food stamp recipients were in poverty, with 84 percent in severe poverty. Few of the food stamp recipients claimed any income. Only 21 percent were working at all, and two-fifths of those working were working fewer than 20 hours per week.

Once work requirements were established, thousands of food stamp recipients moved into the workforce, promoting income gains and a decrease in poverty. Forty percent of the individuals who left the food stamp ranks found employment within three months, and about 60 percent found employment within a year. They saw an average income increase of 127 percent. Half of those who left the rolls and are working have earnings above the poverty level. Even many of those who stayed on food stamps saw their income increase significantly.

Work programs provide opportunities such as job training and employment search services. For example, in Kansas, workfare helped one man, who was unemployed for four years and on food stamps, find employment in the publishing industry where he now earns $45,000 annually. Another Kansan who was also previously unemployed and dependent on food stamps for over three years, now has an annual income of $34,000.

Furthermore, with the implementation of the work requirement in Kansas, the caseload dropped by 75 percent. Previously, Kansas was spending $5.5 million per month on food stamp benefits for able-bodied adults; it now spends $1.2 million.

So, I am doing a hunt to find the best states to live in, and Kansas is in my top 5. They have Governor Sam Brownback, and he has just done a magnificent job pushing conservative policies – not just social policies, but fiscal too. It’s a great state, but still edged out by Oklahoma and Tennessee, in my opinion. We’ll see what else Governor Brownback has in store, though.

You might think that all the news is bad, and that no one is putting into place any conservative policies. Well, of course the good red states are putting in these policies, and of course these policies are achieving the desired objectives. If you elect Democrats, you get Detroit. If you elect Republicans, you get welfare reform that lifts people out of dependency and into earned success. I’m sure that they feel better about not being dependent, too.

Is dependency on welfare good for people? Or is it better for people to work?

Major welfare programs as of 2012
Major welfare programs as of 2012

What’s best for poor people – to remain dependent on government, or to be encouraged to work for their own money so they can be independent?

Consider this article from the Wall Street Journal.

Excerpt:

Earned success means defining your future as you see fit and achieving that success on the basis of merit and hard work. It allows you to measure your life’s “profit” however you want, be it in money, making beautiful music, or helping people learn English. Earned success is at the root of American exceptionalism.

The link between earned success and life satisfaction is well established by researchers. The University of Chicago’s General Social Survey, for example, reveals that people who say they feel “very successful” or “completely successful” in their work lives are twice as likely to say they are very happy than people who feel “somewhat successful.” It doesn’t matter if they earn more or less income; the differences persist.

The opposite of earned success is “learned helplessness,” a term coined by Martin Seligman, the eminent psychologist at the University of Pennsylvania. It refers to what happens if rewards and punishments are not tied to merit: People simply give up and stop trying to succeed.

During experiments, Mr. Seligman observed that when people realized they were powerless to influence their circumstances, they would become depressed and had difficulty performing even ordinary tasks. In an interview in the New York Times, Mr. Seligman said: “We found that even when good things occurred that weren’t earned, like nickels coming out of slot machines, it did not increase people’s well-being. It produced helplessness. People gave up and became passive.”

Learned helplessness was what my wife and I observed then, and still do today, in social-democratic Spain. The recession, rigid labor markets, and excessive welfare spending have pushed unemployment to 24.4%, with youth joblessness over 50%. Nearly half of adults under 35 live with their parents. Unable to earn their success, Spaniards fight to keep unearned government benefits.

Meanwhile, their collective happiness—already relatively low—has withered. According to the nonprofit World Values Survey, 20% of Spaniards said they were “very happy” about their lives in 1981. This fell to 14% by 2007, even before the economic downturn.

That trajectory should be a cautionary tale to Americans who are watching the U.S. government careen toward a system that is every bit as socially democratic as Spain’s.

Government spending as a percentage of GDP in America is about 36%—roughly the same as in Spain. The Congressional Budget Office tells us it will reach 50% by 2038. The Tax Foundation reports that almost 70% of Americans take more out of the tax system than they pay into it. Meanwhile, politicians foment social division on the basis of income inequality, instead of attempting to improve mobility and opportunity through education reform, pro-growth policies, and an entrepreneur-friendly economy.

These trends do not mean we are doomed to repeat Spain’s unhappy fate. But our system of earned success will not defend itself.

How do we make government promote “earned success” over dependency on welfare?

Investors Business Daily reports on one state that decided to encourage people to get off of welfare, and to get back to work.

Excerpt:

The number of childless, able-bodied adult food stamp recipients in a New England state fell by 80% over the course of a few months. This didn’t require magic, just common sense.

From December 2014 to March 2015, the caseload of able-bodied Maine adults with no dependents crashed from 13,332 recipients to 2,678, says the Heritage Foundation. This is a remarkable change and needs to be repeated in government programs across the country.

How Maine achieved this is no mystery. Gov. Paul LePage simply established work requirements for food stamp recipients who have no dependents and are able enough to be employed. They must, write Heritage policy analysts Robert Rector and Rachel Sheffield, “take a job” — just 20 hours a week — “participate in training, or perform community service” for a mere 24 hours a week. Recipients who do none of those are stripped of their food stamp benefits after three months.

This isn’t a radical new idea. Rector and Sheffield cite a successful historical precedent:

“When work requirements were established in the Aid to Families with Dependent Children (AFDC) program in the 1990s, nationwide caseloads dropped by almost as much, albeit over a few years rather than a few months.”

In the Obama era, “the food stamp caseload of adults without dependents who are able-bodied has more than doubled nationally, swelling from nearly 2 million recipients in 2008 to around 5 million today” across the country, Rector and Sheffield report. That’s far too many Americans who can take care of themselves living at the expense of others. The situation cries out for reform.

The Heritage report says that if the Maine policy were repeated nationally, and the caseload dropped “at the same rate it did in Maine (which is very likely), taxpayer savings would be over $8.4 billion per year.”

“Further reforms could bring the savings to $9.7 billion per year: around $100 per year for every individual currently paying federal income tax.”

[…]The success in Maine is but a blip, affecting only a thin slice of the nation’s welfare rolls. Yet it is a model, a prototype for reforming welfare programs in need of change or elimination, which is all of them. Policymakers at all levels should be rushing to adopt it, then adapt it.

Now, do you think that the governor of Maine is a Republican, or a Democrat? Republicans want people to be independent of government, and productive, because that makes them more free. Democrats want people to be unproductive and dependent, because that makes them easier to control.

Republican governor of blue state gets 70% of welfare recipients back to work

Michigan Governor Rick Snyder (R)
Michigan Governor Rick Snyder (R)

This article is from the Daily Signal, and it clearly explains what happens when a blue state hits rock bottom and has to elect a Republican governor to clean up the mess left by a Democrat. In this case, it’s Republican governor Rick Snyder who had to come in and clean up the mess left by Democrat Jennifer Granholm.

Excerpt:

Since Michigan Gov. Rick Snyder assumed office, the number of welfare recipients in the state has declined by a staggering 70 percent, according to a news report.

A total of 64,492 individuals received cash assistance from the state this past August, down from 227,490 in 2011. Snyder, a Republican, took office in January 2011 and was re-elected in November 2014.

Michigan Capitol Confidential, a news site, reported that the decline in welfare recipients could be due to new enforcement of limits on cash benefits. The state has begun enforcing a 48-month lifetime limit for its cash assistance program and a 60-month federal time limit.

The spokesman for the state Department of Health and Human Services, Bob Wheaton, partially credited the drop in welfare recipients to the state’s improving economy.

In an email to Capitol Confidential, Wheaton said: “As the governor said at the time of the decision to enforce time limits, this was returning cash assistance to its original intent—a transitional program to help families as they work toward self-sufficiency while preserving the safety net for families most in need.”

Wheaton also said the program Michigan Works has helped recipients find jobs.

During Snyder’s time in office, the state’s economy has improved, and unemployment has decreased. The unemployment rate in Michigan dropped from 11.2 percent in December 2010 to 5 percent in September 2015.

Honestly, I don’t even think there should be such a thing as welfare. People should be able to put a voluntary contribution into an emergency account, and the government can match that, and if they ever lose their job, they can run their lives off their account. That’s fair. But instead, you have people going on welfare for well over a year, since Obama undid the Welfare Reform bill of 1996.

Maybe that’s why our labor force participation rate is at a 38-year low:

Labor Force Participation 2015
Labor Force Participation 2015

But in Michigan, things are much better. Because they have a Republican running the show. Republicans are not for welfare, they are for helping people back into the workforce. A hand up, not a hand out.