The Pros And Cons Of Welfare Reform

During the Great Depression programs such as, social security, and pensions did not exist. Frank Delano Roosevelt created Welfare reform for older Americans. The depression made it necessary for means to assist the poor. As well as welfare programs FDR created the NRA, WPA, and PWA. The idea of Social Security is that employers and employees would contribute to a pension fund. Another name for Social security is called a “transfer program”. Younger generations are transferring income to the older generation. In return the younger generation will hopefully be rewarded income by the generation after them. This fund is payable upon retirements. Social security was a secure and guaranteeing way to aid older citizens. Social security has allowed the retirees to live longer and in better care.
The act pushed welfare recipients back to work. Welfare put a strain on taxpayers and recipients oddly enough. The problem with the program is that is barely gave enough to recipients to live off of. If they were to go to work, then most of their earned income would be taken away in benefits. This discouraged them to work and collect welfare checks instead. Furthermore, families became even more dependent on welfare. Wisconsin set an excellent model for welfare reform. They set up services such as childcare so that parents could work. Currently child poverty rates declined. African-American child poverty is at the lowest in the nation’s history. In the past five years’ single mothers have moved from welfare into work. After the welfare reform the numbers of recipients fell by more than half. Minimum wage has also increased and the earned income tax credit was made more