Sunday, February 1, 2009

Welfare Aid Not Growing as Economy Drops Off


As the economy drops so does welfare. 18 states had to cut their welfare programs last year. Michigan's unemployment rate dropped 9% and its welfare was cut 13%. However, Rhode Island's welfare decline 17%, which is one of the largest declines in the nation. The welfare program works as it was designed when the bill was passed in 1996. Some believe that it is time for a new system. “There is ample reason to be concerned here. The overall structure is not working the way it was designed to work. We would expect, just on the face it, that when a deep recession happens, people could go back on welfare” said Ron Haskins, a former Republican Congressional aide who helped write the 1996 law overhauling the welfare system. The new bill in Congress right now is gives $2.5 billion to states with caseload expansions. However, the new bill has some people concerned because they believe that the poor would suffer.

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