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>From www.wsws.org
WSWS : News & Analysis : North America : Social Inequality
Reports document the impact of US welfare reform
By Alan Whyte
14 March 2001
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While politicians across the United States have hailed the recent cuts in the
welfare rolls, very little attention is being paid to what actually happens to those
individuals who lose their public assistance. The Federation of Protestant Welfare
Agencies (FPWA) has attempted to answer this question in a recent document
consisting of two separate reports. The first report was conducted by the FPWA
itself and deals with poverty rates in America. The second involves their summary of
over 30 studies conducted by various organizations dealing with the consequences of
welfare cuts in New York City.
The FPWA begins its own report by making the point that since the federal welfare
reform act of 1996 the reduction in welfare rolls has been greater than the
reduction of poverty. In 1999 there were 3.4 million fewer children on welfare than
in 1996, but there were only 2.2 million fewer poor children.
Many politicians also point to recent official statistics that indicate a drop in
the national poverty rate in recent years. The report comments on this data. First,
the official poverty rate in 1999, 11.8 percent, was close to the 12.1 percent rate
that existed in 1969. Second, the report contends that the approximate 2 percent
drop in poverty is not the result of the 1996 law, but rather the relative job
growth in the recent period.
The report also explains that, according to the government, a family of four with an
annual income of more than $17,029 is not considered to be poor. As the FPWA
explains, this figure �understates the true extent of poverty: the line was set at a
low percentage of average income when established, and [with rising costs] over time
has dropped further and further below the average income.� If the official income
level of the poor were adjusted for inflation it would be impossible to claim that
there has been a 2 percent decline in poverty.
The FPWA's second report, which is a summary of about 30 different studies in New
York City, analyzes the impact of the reduction of the city's welfare rolls under
Mayor Rudolph Giuilani. The number of welfare recipients has been reduced from 1.1
million in July 1995 to 560,000 in July 2000, and the report examines what has
happened to these people who have lost their benefits.
The report concludes: �Hunger and homelessness remain at high, apparently growing
levels, despite the economic boom and a substantial decline in unemployment.� In
support of this conclusion, they point to a 24 percent increase in emergency food
assistance from January 1997 to January 1998, and a 36 percent increase in emergency
food assistance from January 1998 to January 1999. As a whole, 71 percent of soup
kitchens and food pantries in the city reported an increase in demand since the
enactment of the federal welfare law in 1996.
One of the main reasons for this growth of hunger is that �Between a third and half
(or more) of welfare leavers are unemployed, most report very modest or no income,
and up to a majority (or more) have also been cut from food (food stamps) and health
care (Medicaid) assistance.� The report concludes that one of the reasons for this
growth in poverty in New York City is that �thousands upon thousands of eligible
people have been denied entry to welfare or kicked off.�
The report summarizes a class action suit in which the court found that, beginning
in 1998, the city began implementing procedures that discouraged qualified
applicants for welfare, food stamps and Medicaid from seeking benefits. In February
1999 the federal civil rights office found that city welfare offices discriminated
against both those applicants who had difficulty communicating in English, as well
as those who were hearing-impaired. Furthermore, a study issued in July 2000 focused
on the fact that about 60 percent of applicants who were denied welfare two or more
times were not informed that they had the right to request a hearing.
The FPWA also examined the city's workfare program that compels welfare recipients
to work for their benefits. The report found that parents are frequently forced to
leave their children in unregulated and uninspected care out of fear they will be
removed from welfare if they claim lack of proper child care as a reason why they
cannot work. More than half of the parents interviewed stated that their caseworkers
gave them no assistance in finding proper child care facilities. Caseworkers were
often unaware that parents can be excused from working if they cannot find
appropriate child care.
The report also found that individuals on the city's workfare program have been used
to replace civil servant employees who were doing the same work. For example, the
overall �acceptability� of city parks increased from 57 percent in 1992 to 89
percent in 2000, even though the number of park employees decreased. The reason for
this is simple: the number of welfare recipients laboring in the parks rose from 182
in 1991 to 2,237 in 2000.
According to one estimate, a person on workfare could receive as low as one-fifth
the wages of even a very low-paid civil servant for doing the equivalent work. One
study estimated that welfare recipients have replaced 20,000 union workers in the
municipal workforce. Furthermore, forcing welfare recipients onto workfare has
forced many young people to drop out of school or training programs.
A copy of the report is available from the FPWA at:
http://www.fpwa.org/publications/pov-welf.html.

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~~~~~~~~~~~~~~~~~~~~
The libertarian therefore considers one of his prime educational
tasks is to spread the demystification and desanctification of the
State among its hapless subjects.  His task is to demonstrate
repeatedly and in depth that not only the emperor but even the
"democratic" State has no clothes; that all governments subsist
by exploitive rule over the public; and that such rule is the reverse
of objective necessity.  He strives to show that the existence of
taxation and the State necessarily sets up a class division between
the exploiting rulers and the exploited ruled.  He seeks to show that
the task of the court intellectuals who have always supported the State
has ever been to weave mystification in order to induce the public to
accept State rule and that these intellectuals obtain, in return, a
share in the power and pelf extracted by the rulers from their deluded
subjects.
[[For a New Liberty:  The Libertarian Manifesto, Murray N. Rothbard,
Fox & Wilkes, 1973, 1978, p. 25]]

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