Tuesday, February 27, 2007

US welfare progress

This is a good overview of the effects of the US welfare reforms. They are mixed. Although millions fewer families rely on cash payments, other government aid - food stamps, medicaid and disability payments - continue to grow. Anti-reformers complain about ex welfare recipients being in low paid jobs and needing to supplement their income with non-cash forms of aid. They still want the government to provide education instead of jobs. My feeling about that is it is up to the individual to get things in the right order and ultimately, somebody has to do the unskilled jobs. I wish they paid more, but part of the reason they don't is the taxation going into government assistance programmes! But if you want to instill a work ethic in the next generation it has to start somewhere.

There is something out of this article which is good news for NZ. Because we don't have as much non-cash assistance and our low paying jobs are on par or better than benefits, the potential for people to become self-sufficient, one aim of welfare reform, is greater. Although with Working for Families we are going in the wrong direction for self-sufficiency.

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