Does Welfare Cause Poverty?
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That there is a problem with the U.S. welfare system is confirmed
by evidence from many sources. The evidence comes from anecdotal reports,
scholarly analyses and statistical tests. All told, the evidence of a problem
is clear, unmistakable, undeniable and, quite frankly, overwhelming.
Scholarly Studies of the Culture of Poverty. Beginning in the late 1950s,
studies of the welfare system were conducted by scholars focusing on the
culture of poverty. None of these studies actually proved that welfare
was causing poverty. Yet each analyzed a particular dimension of the poverty
culture in a powerful and persuasive way.
- Anthropologist Oscar Lewis used the phrase "culture of poverty"
to indicate that the poverty he observed among Puerto Rican families in
New York in the 1950s was not just a temporary economic condition, but
a way of life reinforced by despair of achieving even meager economic goals. 16
- In the 1965 book The Negro Family,17 Daniel Patrick Moynihan,
then a professor at Harvard University, expressed alarm over the fact that
20 percent of all black children were living in single-parent households
(today the figure is 70 percent) and advised the Nixon administration to
quit pouring money into the black community and pursue a policy of "benign
neglect."
- In the pathbreaking book Welfare, Martin Anderson, a senior fellow
at Stanford University's Hoover Institution and a chief of the Office of
Policy Development in the Reagan White House, calculated effective marginal
tax rates for low-income workers and concluded that the welfare system
was designed from top to bottom to encourage dependency and discourage
self-reliance. 18
- In the 1970s, sociologist George Gilder spent several years living
among poor welfare recipients. In Visible Man19 and Wealth and
Poverty,20 he analyzed in great detail how the welfare system was destroying
the family, especially the black family, in low-income communities.
- More than any other single study, Charles Murray's Losing Ground21
shocked liberals and conservatives alike by arguing that in our central
cities the black family has been all but destroyed, chiefly by the welfare
system.
- The idea that poverty is the result of a cultural pathology was given
more credibility with the 1982 publication of journalist Ken Auletta's
work, The Urban Underclass.22
- In The Truly Disadvantaged23 (1987), liberal sociologist William
Wilson argued that the culture of the underclass is an adaptation to social
forces over which the poor have little control; as working-class families
and businesses move to the suburbs, those left behind form an adaptive
culture that relies on welfare, street hustling and crime to survive in
an isolated wasteland.
- In 1993, Michael Katz argued in The "Underclass" Debate24
that the emergence of a hostile and desperate underclass is the result
of a collapse of community and that the only viable institutions left in
the inner city are the private agencies and churches that provide some
limited level of "civil society."
One criticism of these studies
is that no rigorous statistical tests support their conclusions. Social
scientists, by nature, like controlled experiments and rigorously developed
econometric tests of important propositions. Now, this kind of evidence
is in hand. Let's take a closer look.
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