Essays in Honour of Günther Schmid
Edited by Hugh Mosley and Jacqueline O’Reilly
Chapter 8: The 1996 US welfare reform: objectives, effects and lessons
8. The 1996 US welfare reform: objectives, effects and lessons Robert Haveman and Barbara Wolfe August 1996 is a watershed date for US social and economic policy. On that date, Congress passed into law a far-reaching welfare reform, the Temporary Assistance for Needy Families (TANF) programme. In many ways, TANF reﬂects the ascendance of a social philosophy that society should require all able-bodied individuals and families to be economically independent and self-reliant. It attempts to accomplish this by minimizing collective cash support for individual well-being while increasing the reward to work effort. Since the implementation of the welfare reform law in 1996, welfare rolls have fallen by more than 50 per cent.1 THE 1996 WELFARE REFORM: TANF TANF2 replaced a welfare system that was based on a quite different philosophy, namely that all individuals and families should be assured a minimum level of living through some combination of own income and public transfers. While the socially accepted level of living implicit in this system was meagre relative to the norms of many of the generous western European welfare states, and while it varied from state to state, the pre-TANF system nevertheless provided such a safety net for all families except the ‘working poor’.3 The major provisions of TANF included, ﬁrst, the elimination of the major cash assistance programme to poor people, the Aid to Families with Dependent Children (AFDC) programme; second, the reassignment of ﬁscal and regulatory responsibilities for assisting the nation’s poor families from the federal government to...
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