Too bad it’s not the actual goal of the welfare system. (I’m gonna rant so if you don’t wanna hear it, just go ahead and close the window now.)
If the welfare system were designed to get people ready for good jobs, going to school would be mandatory in order to receive welfare. As it’s currently set up, you can either work and/or go to school. Your benefits are slashed if you work, though – and if all you have is a high school diploma (and chances are that’s all the education the majority of recipients have), you’re not going to find a better job after your time is up UNLESS you get some kind of higher education. It doesn’t have to be college, but if all you’re doing is working at Taco Bell for those 5 years, you’ve gained no new skills and will still be working a low wage job with no benefits after you’re finally cut off for good. And when you are cut off, there’s no more safety net, ever. Lose your job and you have nothing to fall back on. You’re probably going to be a low wage worker for the rest of your life.
Welfare ISN’T working, but cuts aren’t the answer — and neither is increased funding.
The way the system is designed right now, welfare will only, in a best case scenario, sustain the recipient. Sustaining would be just fine, if any efforts the recipient makes on their own to start building a nest egg for the future weren’t met with drastic cuts in their benefits.
Here’s an example. Let’s say you live in WV and you’re on welfare. A family of 3 gets $340 a month in cash and $3XX in food stamps. The child has a medical card, and so do the parents as long as they aren’t working. If just one of the parents works, both of them lose the medical card. Only the kid’s medical benefits are safe.
But let’s say that both parents are in school, and $340 just isn’t getting it so Dad wants to take a minimum wage job somewhere working 10 hours a week – the plan being to use half now and put half in savings.
If Dad knows that he and the wife won’t lose their medical cards and the family’s benefits wouldn’t be slashed by 1/3 (or more), he could get that job and earn a paltry $51.50 a week. Let’s pretend that he sees $40 of that after taxes. So they’d have an extra $80 coming into the household to be spent now, and $80 being set aside every month in savings.
If they do that over their 5 year period, and this family would have about $5,000 in the bank by the time they get off of welfare. They’d have plenty to live on while they find good jobs, AND they may even be able to take advantage of the Earned Income Tax Credit every year (that’s iffy, though, because IIRC the EITC requires a minimum income). The EITC, if they can get it, would bring even more money into the home that could go into savings. Let’s get even crazier and allow Mom to work at the same place Dad does, same money, same hours. They’d have an extra $160 to spend every month and almost $10,000 in the bank by the end of their time limit. Armed with some kind of higher education and decent savings, there is almost no chance this family is ever going to need welfare again.
Instead, the family is forced to pay their bills on $340 a month and not work at all. They lose the chance for the EITC every year, and when they get off of welfare they will have no savings whatsoever – and will probably be in debt up to their ears, too (many recipients end up having to use credit cards to get by). Unless they have their own place (or are in subsidized housing) AND either have a car that’s paid off (or access to public transportation), there is simply no way they are going to have their actual needs met by what cash they do get. They may be able to keep the lights and phone on, and pay their car insurance, but clothing isn’t gonna happen. It could, though, if they were allowed to work a little bit.
The good consequences of getting a job and earning that measly $200-400 a month, though, are far outweighed by the cuts they would get. They would literally be worse off for trying to work and save up a little nest egg. When they get out of school, not only do they have no savings, but they have nowhere to turn if it takes a month or two to find a job because they’ve used their 5 years already. God forbid they get sick during that interim period or get a flat tire, they’re screwed.
Sorry to ramble but this is a hot button issue for me. I really do believe the majority of welfare recipients would jump at the chance to work and save money if they knew they wouldn’t get nailed. Nobody with any sense WANTS to be on welfare – and those that are on it deserve the chance to shape their own financial future without fear of getting punished for it. I’m not saying that welfare recipients should be able to work full time jobs with NO cuts to their benefits whatsoever, but I think they should be allowed – no, encouraged – to earn a minimum income on their own with no repercussions, especially since the government is unwilling to pay these people what they need to pay their bills (and buy necessities) to begin with. (I know people on welfare who have to either borrow money from friends OR use a friend’s washing machine just to get the laundry done!)
If someone chooses not to take the opportunity to earn that minimum income and save some of that money for the future, SCREW 'EM. If they starve once their 5 years has expired, oh well. Everyone, though, should at least have the opportunity to see to it that, once they leave that welfare office that final time, they at least have something to fall back on.
The system’s not working because the government is not requiring anyone to do the ONE thing that is proven, more than anything else, to get people out of poverty: further your education. In the welfare system, education is optional, when it should be priority #1. With this “education optional” policy, coupled with recipients who aren’t allowed to earn even a tiny paycheck without dire cuts to their benefits, it’s no wonder that very few people who get off of welfare actually end up living above the poverty line. They may get off of welfare, but they are still poor. Their time on welfare did nothing to improve the rest of their lives, and in the end the government has failed in creating new taxpayers.
Nobody wins.