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> 
> The worst is yet to come
> 
> THE NEW YORK TIMES
> 
> November 19, 2001
> 
> The Vanishing Act
> By BOB HERBERT 
> 
> 
> The U.S. unemployment rate rose sharply in October, to 5.4 percent, the
> biggest jump in five years.
> 
> In New York, which is suffering the effects of a terrorist attack in the
> midst of an economic downturn, some 80,000 jobs were lost in October, a
> stunning decline in a month that can usually be counted upon for job growth.
> 
> Worse is to come. We will soon be hearing about the terrible difficulties
> jobless men and women will encounter when, after tumbling out of the labor
> market, they look around for a helping hand that is not there.
> 
> Seldom in the last half-century has the U.S. been so poorly prepared to
> assist individuals and families struggling with the effects of a recession.
> Example: the unemployment insurance system, which was established to ease
> the pain of temporary joblessness, covers less than 40 percent of the people
> who are out of work. Example: the food stamp program, which was supposed to
> slam the door on hunger in the world's greatest nation (and which once
> served 90 percent of eligible families), now serves just 60 percent of the
> poverty- stricken folks who qualify for help.
> 
> And then there's welfare. In the summer of 1996 Bill Clinton signed the
> so-called reform bill ending "welfare as we know it." Among other things, it
> imposed a five-year lifetime limit on welfare assistance to needy families.
> 
> The potentially tragic consequences of that legislation were concealed for a
> while by the extraordinary economic boom in the last half of the decade. But
> Daniel Patrick Moynihan and others had warned all along of the dire
> implications of ending the guarantee of federal help to the nation's poorest
> families. Marian Wright Edelman of the Children's Defense Fund noted that
> supporters of the welfare bill assumed there would be "no recession in the
> next decade, which is unprecedented."
> 
> Now, with the good times behind us, we are about to see what happens when
> you remove the safety net that was designed to protect families doing an
> economic high-wire act. For an awful lot of distressed families, the end of
> welfare is coinciding with an economic recession exacerbated by acts of
> terror. 
> 
> In an appearance at the National Press Club in Washington last week, Deepak
> Bhargava, director of a coalition of groups known as the National Campaign
> for Jobs and Income Support, said, "We now have a welfare system in which
> time limits will be hitting in a majority of states at precisely the time
> when the labor markets are the weakest and when families are in the most
> trouble." 
> 
> More than 120,000 families have already lost their benefits or had them
> reduced because of time limits on welfare. The lifetime limits kick in at
> different times in different states. Between now and next July we'll see
> welfare benefits exhausted for large numbers of families in at least 26
> states. 
> 
> Mr. Bhargava, whose coalition was formed by more than 1,000 organizations
> fighting on behalf of poor and working families in 40 states, said that by
> early next year the U.S. will be faced with huge numbers of families in
> desperate trouble because their welfare benefits have been cut off and there
> is no work for them.
> 
> Government officials who expect poor and working families to sort of roll
> over and quietly accept their dismal economic fate may get surprised this
> time around. There is a growing sense of militancy among struggling families
> in the United States. Pushing people to their limits will produce that.
> 
> Groups representing poor and working families are better organized and can
> be expected to make a lot more noise than they made in the mid-90's when
> welfare reform became a mantra. The federal welfare law has to be
> re-authorized next year and a big fight over its most onerous elements is
> all but guaranteed. Policy makers can also expect long and sometimes bitter
> fights at both the federal and state level over proposals to increase the
> minimum wage, to establish "living wages," to expand health insurance
> coverage, and to extend unemployment benefits to low-wage, part-time,
> temporary and other workers who don't presently qualify for them.
> 
> The cynicism that resulted in millionaire senators cheering the passage of
> welfare reform is now being confronted by the cold reality of a
> take-no-prisoners recession that threatens to leave millions of American
> families jobless, and all but helpless as well.
> 
> 
> 
> Copyright 2001 The New York Times Company
> 
> 
> http://www.nytimes.com/2001/11/19/opinion/19HERB.html
> 
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