Welfare and Work Ethic Reciprocity

  This is a follow-up to my Apollo Initiative diary.  This diary is also a cobbled together synopsis from The Realignment Project.  The primary source for this diary was The Psychology of Public Policy

Welfare And Work Ethic Reciprocity:


One dilemma has been the clash between our desire to provide protection against the great social ills of poverty, disease, lack of education, poor housing, and unemployment and society’s resistance to violations of the social norm of reciprocity. The easiest attack on welfare has always been to assert that other people are getting something for nothing and thus divide society between the payer and payee.
It is not foreordained that all forms of social welfare have to meet the same fate. It is possible to be both right and smart – and learn to tack into the wind of public opinion.
Looking at the In-Home Supportive Services (IHSS) model gives us one possible solution for how to do just that.

 

(The above is not a direct quote, but contains multiple direct plagarizations and I believe presents a reasonably accurate interpretation)

There's more...

Welfare and Work Ethic Reciprocity

  This is a follow-up to my Apollo Initiative diary.  This diary is also a cobbled together synopsis from The Realignment Project.  The primary source for this diary was The Psychology of Public Policy

Welfare And Work Ethic Reciprocity:


One dilemma has been the clash between our desire to provide protection against the great social ills of poverty, disease, lack of education, poor housing, and unemployment and society’s resistance to violations of the social norm of reciprocity. The easiest attack on welfare has always been to assert that other people are getting something for nothing and thus divide society between the payer and payee.
It is not foreordained that all forms of social welfare have to meet the same fate. It is possible to be both right and smart – and learn to tack into the wind of public opinion.
Looking at the In-Home Supportive Services (IHSS) model gives us one possible solution for how to do just that.

 

(The above is not a direct quote, but contains multiple direct plagarizations and I believe presents a reasonably accurate interpretation)

There's more...

Welfare and Work Ethic Reciprocity

  This is a follow-up to my Apollo Initiative diary.  This diary is also a cobbled together synopsis from The Realignment Project.  The primary source for this diary was The Psychology of Public Policy

Welfare And Work Ethic Reciprocity:


One dilemma has been the clash between our desire to provide protection against the great social ills of poverty, disease, lack of education, poor housing, and unemployment and society’s resistance to violations of the social norm of reciprocity. The easiest attack on welfare has always been to assert that other people are getting something for nothing and thus divide society between the payer and payee.
It is not foreordained that all forms of social welfare have to meet the same fate. It is possible to be both right and smart – and learn to tack into the wind of public opinion.
Looking at the In-Home Supportive Services (IHSS) model gives us one possible solution for how to do just that.

 

(The above is not a direct quote, but contains multiple direct plagarizations and I believe presents a reasonably accurate interpretation)

There's more...

The Effects of Welfare reform.

The Personal responsibility and work Opportunity act was passed and signed into law in 1996. The legislation is also known as Welfare reform. The act redistributed welfare delivery, and structure from the Federal government to state, and local governments. Allowing states to determine their own model for welfare. Since then some states have placed more requirements for welfare recipients  then the act placed.
Some of the major provisions of the PRWORA of 1996 include but are not excluded to:
1)      Requiring welfare recipients to be actively in search of employment. Limiting benefits for beneficiaries who do not obtain employment two years after receive benefits.
2)      The act also placed a 5 year lifetime limit on benefits paid by federal tax dollars, however there are some exceptions for children.
Now we are on to the real felt effects of Welfare reform. Firstly A study conducted by “The Center on Budget and Policy Priorities,” published in 1999[Yes over ten years ago] found that from 1993-1995 poor families income increased by near $1,000. However the poorest families income after the passage of Welfare reform decreased even though the economy was experiencing significantly better economic growth. Their income fell by around $750 dollars in the two years preceding legislation. [1]
Other findings from the study show a significant drop in the number of children leaving poverty or extreme poverty. From 1993-1995 2.4 million children were lifted out of extreme poverty, compared to only 360,000 in 1995-1997, this is again despite a better economy during the latter years. [1]
The above mentioned effects are a bit shocking and disappointing for the well being of American families yet there's more.  
Before the welfare reform act 12 million Americans were on welfare, after the act the number of Americans on welfare fell to 5 million in 2001 or by 60%. Total yearly benefits for those on welfare fell by around $200 or by 10%. Total welfare spending equaled 28 billion dollars in 1996, and 24 billion dollars in 2001.[2,3] If your scratching your head wondering, “How come total welfare spending only fell by 15% when the number of people on welfare fell by 60% and their benefits fell by 10%?”[2,3]
The answer lies in the fact that the major effect of Welfare reform was a substantial increased in administration costs, commonly known as  bureaucracy, and wasteful spending. In fact the total amount of administration costs increased by 300%. [2,3]. After doing the math I found that we could double the number of people on welfare without adding a cent to the total cost of welfare, if we simply repealed “The Personal responsibility and work Opportunity act (welfare reform)”. The savings would come in the reduction in wasteful spending.
The major reasons why welfare reform increased wasteful spending include but don’t exclude:
1)      A decentralized system. Instead of one federally operated program there are now 50 different ones.
2)      Requirements on welfare recipients such as that they must be actively looking for a job. There’s tons of paperwork that has to be done to prove you’re looking for a job and it takes government time and employees to make sure you’re following the requirements.

Feel free to copy and past these realities as you desire.

References:
Footnote #1
http://www.cbpp.org/...
Footnote #2
http://www.libraryindex.com/...
Footnote #3
http://www.libraryindex.com/...

 

 

Weekly Audit: Wall Street Destroyed $8 for Every $1 Earned

 

by Lindsay Beyerstein, Media Consortium blogger

Tonight, President Barack Obama will deliver his State of the Union address. A major theme of the speech will be jobs and the economy. Let’s hope the president spares a few minutes for Wall Street reforms that might prevent a repeat of the economic collapse that we’re slowly starting to recover from.

As Kai Wright points out in ColorLines, the State of the Union is the unofficial kickoff of the 2012 election season:

The still churning foreclosures and mounding debt in black and brown neighborhoods don’t suggest a stabilized economy anywhere except Wall Street, but let’s set that familiar fight to the side for now. The point is that whether we’re talking about creating jobs or seating district court judges, the time for making policy is gone. Starting tomorrow night, it’s all talk until we vote next.

Amy Dean of Working In These Times shares Wright’s skepticism. With the Republicans in control of the House and the Democrats hanging on to the Senate, we’re looking at a legislative stalemate until the next election. Dean argues that activists should use this lull in the action to refocus their organizing at the grassroots level.

Wall Street destroyed $8 for every $1 it earned

In AlterNet, Les Leopold asks why bankers are earning such huge bonuses while the financial system is in disarray. According to standard economic theory, your compensation reflects the value of your work. Yet, according to Leopold’s back-of-the-envelope calculations, the financial sector has destroyed $8 worth of wealth for every dollar it earned over the last 5 years. His estimate includes the wealth-destroying impact of the subprime mortgage crisis and other epic Wall Street blunders.

The free market might not be as generous with bankers as the current system of government bailouts. If financial firms were allowed to fail, Leopold notes, bankers who drove their own firms out of business wouldn’t get paid. However, under the current “too big to fail” rules bad decisions lead to taxpayer rescues, not unemployment. So, the bonus checks keep rolling in.

Social Security switcheroo

James Ridgeway of Mother Jones predicts that Obama is gearing up to cut Social Security:

Having “retooled’’ his Presidency for a more open accommodation of the center right, Obama will soon be overseeing the battle to launch a dismantling of the Social Security system. [...] Without entirely destroying the popular program, he will support cuts that go beyond anything that should rightly happen during a Democratic administration.

Ironically, Ridgeway notes, our current Democratic president is to the right of many of yesterdays conservative Republicans. The legendary arch conservative Sen. Robert A. Taft (R-OH) was a staunch defender of Social Security. Republican President Dwight Eisenhower spearheaded the largest expansion of Social Security in the largest expansion of benefits in the history of the program.

Michelle Obama and Wal-Mart

Michelle Obama has enlisted the world’s largest corporation (and largest grocer) in her Let’s Move! campaign against childhood obesity. George Warner of Campus Progress takes a closer look at the skewed economics behind the “Nutrition Charter” signed by Wal-Mart last week. Amongst other things, Wal-Mart pledged to cut added sugar in its products by 10% by 2015; make healthy food more affordable; and develop a “nutrition seal” to alert shoppers to ostensibly healthier foods.

Yet, Warner notes that Wal-Mart is contributing to ill-health by employing a massive workforce at less than a living wage. Even if Wal-Mart follows through on its relatively modest pledges to promote healthy eating, it continues to put its own workforce at risk of ill health simply by paying them poverty-level wages. Studies show that for every job a new Wal-Mart store creates, it destroys three existing jobs, which paid an average of 18% more.

Poverty is one of the strongest predictors of obesity and poor diet.

Beck vs. Piven, Round 2

Last week, the Audit covered a bizarre right wing trend of demonizing 78-year-old CUNY political science prof Frances Fox Piven for an article she wrote in 1966. Glenn Beck and other leading lights of the right claim that Piven’s 45-year-old article is being used right now by liberal elites in their sinister plot to violently overthrow capitalism.

Piven is receiving death threats by email; and death threats are popping up on Glenn Beck’s website, including: “Snap her little chicken neck. This pinko filth needs a long dirt nap.”; “Somebody tell Frances I have 5,000 rounds ready.”, and “We should blow up Piven’s office and home.”

In actuality, Piven’s article argued that everyone who was eligible for welfare should sign up for benefits in order to expose the structural flaws in the system. Say what you will about the plan, it was non-violent. It involved a lot of paperwork. Far from overthrowing the federal government, Piven sought to usher in a federal guaranteed federal income as an alternative to the patchwork of state and local welfare agencies doling out benefits.

Matthew Rothschild reports in the Progressive that the Center for Constitutional Rights has sent a letter to Roger Ailes of Fox News asking him to reign in the anti-Piven demagoguery.

This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

 

 

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