A patchy record at 20

WHAT duty does a rich society have to its poorest members' The answer in America's welfare reform of 1996, the 20th anniversary of which falls on August 22nd, was that it has an obligation to help the poorest into work. The new law changed the lives of millions of Americans. Its effects were also felt beyond America's borders, as European countries copied 'workfare' and middle-income countries like Mexico and Brazil attached strings to cash payments for the poorest.One aim of the reform was, in President Bill Clinton's words, 'to end welfare as we know it.' Judged by that standard, it succeeded. Welfare rolls fell by half and then fell by half again. That is both because the reform prompted welfare recipients to seek work, and because cash payments are eventually cut off to those who are not working (see article).This success came at a price. Mr Clinton's original proposal coupled the work requirement with a guarantee that the government would act as employer of...Continue reading
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