Characteristics of a Good Welfare System
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The implication
of the GAO and the Bane and Ellwood studies is simple yet profound: poor
people are as diverse as those in other income groups. The welfare population
of one city can differ in remarkable ways from the welfare population of
another. Even within a city, one group's response to changes in incentives
can differ remarkably from that of another group. This finding means that
it is almost impossible to design an effective federalized, one-size-fits-all
welfare system.
What do people expect of an effective, responsible welfare system? The
following guidelines probably would command broad support:
- The system should be guided by the philosophy that most people can
and should support themselves and their families. In the absence of physical
or mental impairment, individuals should perceive that society expects
them to support themselves and their families.
- People who need aid most should get it first. Since there always will
be a limit to the number of welfare dollars available, the people in greatest
need should get the highest priority.
- The way aid is given should encourage independence and self-reliance.
Since the very act of giving relief encourages dependence, procedural incentives
for self-sufficiency should be adopted.
- The welfare system should not encourage the breakup of the family.
Family members should never find it in their economic self-interest to
separate.
- Short-term help should be available to many, and long-term help should
be reserved for a few. A humane welfare system is one that readily provides
temporary and emergency help to those in need while providing permanent
aid only to the very few who cannot support themselves.
- The goals of the welfare system should be achieved at the minimum cost.
It is in our self-interest to find the most cost-effective ways of operating
the welfare system based on these principles.
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