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Economics 405: The Economic Problems Of The Welfare System

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Economics 405: The Economic Problems Of The Welfare System
The Economic Problems of the Welfare System

Economics 405- Economic Problems and Issues

Describe the selected economic problem. Welfare is a drain on the economic system in America. Developed in the 1930’s, welfare’s intended purpose was to help low income Americans get on their feet, but it turned out to be a slow sinking hole with little help of getting out. The majority of individuals that rely on the welfare system are young single mothers with little education and no child support from the children’s father. While some people use this system as it was intended, there are still some that abuse it. There is another group that uses it and can’t get out which is a cycle that includes their children and their …show more content…
Home checks of welfare recipients should be performed randomly to find fraud cases and eliminate wasted money. Many recipients work from home for cash or find other ways to make money and still receive benefits.
Daycare facilities, medical clinics, and other medical facilities should be audited monthly for over charging the state. Welfare recipients are not the only ones that try to cheat the system, many facilities that receive payments from the state for services from the poor are guilty. “If more welfare mothers keep having more and more children just for the money, they are just bringing more and more future government assisted people in the world. (Krannebitter, Kyle 2008).” With this in mind, women on welfare should not receive additional benefits if they have more children while they are on welfare. They should receive birth control and job skills. Single women on welfare should also be made to file for child support before receiving any benefits. The fathers should be made to support their families rather than the …show more content…
(2012, January 23). ZeroHedge | On a long enough timeline the survival rate for everyone drops to zero. ZeroHedge | On a long enough timeline the survival rate for everyone drops to zero. Retrieved September 1, 2012, from http://www.zerohedge.com/news/united-welfare-states-america-2011-nearly-half-population-received-some-form-government-benefithttp://
Expectancy Theory of Motivation. (2008, January 1). Management Study Guide - Free Training Guide for Students and Entrepreneurs.. Retrieved September 1, 2012, from http://managementstudyguide.com/expectancy-theory-motivation.htm
Krannebitter, K. (2008, October 8). Regulate the Welfare Abuse. ArticlesBase. Retrieved September 1, 2012, from http://www.articlesbase.com/economics-articles/regulate-the-welfare-abuse-592020.htmlhttp://
Tanner, M., & DeHaven, T. (2011, September 1). TANF and Federal Welfare | Downsizing the Federal Government. Downsizing the Federal Government. Retrieved September 1, 2012, from http://www.downsizinggovernment.org/hhs/welfare-spending
Zilberman, D. (n.d.). Department of Agricultural and Resource Economics EEP 101 University of California at Berkeley. Welfare Economics. Retrieved September 1, 2012, from
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