By Collin Sternad
Welfare is
supposed to help Americans who are struggling in a time of need. It is supposed
to be a safety net that allows people to get back on track, not a better
alternative to work. Today welfare, for some people, is becoming a lifelong
source of income. The Welfare program is turning into somewhat of a “free-rider
problem” to those who fund it. This is not only because some people abuse the
system, but because of how the system is set up. Reformation to the welfare
system is needed in order to maximize its benefits for those who actually need
assistance.
The abuse of the welfare system is
taking place by Americans that depend on it as their income for an extended
period of time. These beneficiaries are not paying into the system because
their source of income is from the government already, but still reap the
rewards. According to recent statistics found by the U.S. Department of Health
and Human Services, about 65% of Americans receiving welfare have been doing so
for over a year. Even more alarming is that 19.5% of those people have been on
welfare for five years or longer. No matter how devastating depressions can be
on a society they rarely last five years. Simply put, if someone is on welfare
for five years they are either extremely under qualified or don’t have the work
ethic to be employed. Unemployment agencies are constantly offering assistants
to those looking for greater income even if the demand is low and the supply is
high.
Unfortunately
economically speaking it makes more sense to accept the welfare check each
month than work for some Americans; the opportunity cost of working a low
paying job is greater than it is to say at home all day. In 39 states workers
make more on welfare, than an eight dollar per hour paying job. Why would
someone try to find work when the job they are applying for actually gives them
less? This isn’t even accounting for the numerical value an individual puts on
their own time. If economist where able to put a values on a person’s time, the
statistics would be even more staggering. For example, in New York a mother
with two children, when considering food stamps, benefits, etc receives up to
$38,004 annually according to the New York Times. Considering that all those
benefits and income are tax free it is equivalent to making more than many
first year teachers. It is unacceptable in a capitalistic society like the
United States for someone who isn’t working, no matter the reason, to be making
more than the people who are educating the countries future.
The welfare
system is one of the Unites States more important programs, but like everything
else there comes a time for transformation. As the country’s debt continues to
rise, one way to help reduce spending could be through welfare. Although
controversial, it may be beneficial to raise the minimum wage, to make it
worthwhile for more people to enter the job market. In unison, the government
could tighten up the requirements for welfare, and reduce benefits the longer
someone is taking advantage of the program. At first they would still a decent
source of income to help them out in the short term, but as time goes on that
source of income would slowly dwindle away. This would encourage them to find
work, and once again become a functional member of society. While it is vital
to keep the welfare system intact, it is equally important to reassess and
revise that system that is currently in place to help those that are in serious
need.
Works Cited
DePARLE, JASON. "Welfare (US) -
News - Times Topics - The New York Times." Times Topics - The New York
Times. N.p., n.d. Web. 15 Oct. 2013. <http://topics.nytimes.com/top/reference/timestopics/subjects/w/welfare_us/index.html>.
"On Labor Day 2013, Welfare
Pays More Than Minimum-Wage Work In 35 States - Forbes." Information
for the World's Business Leaders - Forbes.com. N.p., n.d. Web. 15 Oct.
2013. <http://www.forbes.com/sites/theapothecary/2013/09/02/on-labor-day-2013-welfare-pays-more-than-minimum-wage-work-in-35-states/>.
"United States Department of
Health and Human Services | HHS.gov." United States Department of
Health and Human Services | HHS.gov. N.p., n.d. Web. 15 Oct. 2013.
<http://www.hhs.gov/>.
One way to fix the problem of people abusing the welfare system would be to increase minimum wage. This would get the people who would work to work. Welfare should only be for people who are trying to find work and need a little money until then. When people are on it for more than a year, it is clearly being abused.
ReplyDeleteAnd with 12,800,000 Americans on welfare and 46,700,000 on food stamps, something needs to be done. This is costing the government $131.9 billion every year, not including food stamps or unemployment. Juxtaposed to the national debt now, it's really not a significant amount, but every little bit helps.
http://www.statisticbrain.com/welfare-statistics/
While I understand that we have a growing free rider problem, I'm not sure the solution is to diminish welfare. Whether a family has an $8 an hour job or $30,000 a year from welfare, they still will struggle to make ends meet. As Josh suggested, raising minimum wage would encourage the unemployed to find jobs. However, ultimately a solution needs to encompass the reasons for unemployment in the first place, such as a lack of education on the employee's part, or a lack of economic incentive on the employer's part.
ReplyDeleteI agree that this is a growing problem that needs to be solved. I also agree with the statement that welfare should not be a long term benefit as people should be able to find work if they are trying hard enough. However, as the video said, the welfare system right now makes it difficult for people to get off of it as it provides such great benefits. Maybe the solution is as easy as cutting down on welfare, but more likely than not, something else will have to be done to help that succeed.
ReplyDeleteThis is a great piece on an ever growing issue. I think the fact that you pointed that people on welfare make more money than a first year teacher speaks for itself. People working should be making more money than a person who isn't. By allowing people to make this much money with out a job I would only think this trend will spread as other people will question what's the purpose in working, when I can make 38,000 a year doing nothing. And when people start thinking like that, there's going to be trouble. It'll will be definitely be interesting to see how this problem will be solved.
ReplyDeleteIt is obvious from the statistics that are shown that welfare is now being used for a permanent source of income. It is troubling that the money welfare gives to people who need help is more than the average first year teacher gets paid. I can see how this is a problem because everyone could generally -- under the right condition--- apply for welfare and get paid money each month. I do agree that minimum wage should be increased because maybe it will get people more motivated to apply for a job with the wage increase. Then it will be easier to tighten the welfare benefits people can receive. The government will most likely not get rid of the welfare system, but they really do need to improve it.
ReplyDeleteI believe that this is a problem that is continuing to grow. I agree with Bennett when you pointed out that first year teachers are making less money than people on welfare. I believe that this problem is worsening because people who have gone to school and worked hard towards what they want to do with their life are not getting fair enough benefits, while people who do not work and are on welfare are receiving more money.
ReplyDeleteThis was a very interesting topic to cover, and many of your statistics I found to be absolutely staggering. It is crazy to think that there are people doing nothing that make more than people working. I think that this problem is going to have to be addressed because it is enhancing the debt in our nation and promoting laziness. I think that this problem is only going to grow if nothing changes, because people who are actually work are just going to stop once they realize what is actually happening.
ReplyDeleteThere are several possibilities in solving this solution. Similar to what Ryan said, I don't think it'd be appropriate to diminish welfare, for it is a very helpful aspect of our government. I also don't think that cranking up the minimum wage would be very helpful either due to inflation. Perhaps America should increase the qualifications in which someone needs to be on welfare. It'll potentially leave more homeless people, but this will give these people the motive to work for something bettering our overall economy.
ReplyDeleteI agree with a lot of what people said above. While there are many solutions, I do not think raising minimum wage would be beneficial. It would only cause people to earn more money for an easy job. With having a free rider problem, you have to look at the problem in detail. While I do not have an exact solution to this problem, I don't think increasing minimum wage is what will solve this.
ReplyDeletePersonally, I don't believe that raising minimum wage would help this problem at all. Raising minimum wage leads into a whole different discussion, but I also don't think that diminishing welfare completely would solve the problem either. Maybe if they lowered the amount of benefits that you get on welfare, a job would become more appealing, and therefore save the government money, and push people in the right direction while still offering a short-term crutch.
ReplyDeleteThat is ridiculous that people stay on welfare so long. Welfare is supposed to be for those who truly need it, not for those too lazy to earn their money. The government should increase the regulations for welfare. I know people who have stayed on the welfare system as long as they could because it was like free money. This is a huge problem for the U.S. right now that needs to be solved.
ReplyDeleteThis is currently a huge problem in Denmark, as people are clearly abusing the system. Our welfare is so good that in some cases it would be more beneficial than having a job. The welfare is also a problem in the UK, where girls in rural areas will get pregnant to get a flannel. Welfare should never be the better alternative!
ReplyDeleteI agree with you how threatening it is that almost 20% of the country has been on welfare for 5 years or more. There isn't anything a free market system can do to compensate for people free-riding on a government that has no interest in helping them get off welfare. Of course there are exceptions, people who aren't able to provide for themselves. But 1 in 5 Americans is not that needy. Welfare needs to become more stringent in its acceptance standards.
ReplyDeleteIt's a shame that people abuse the system, that the government provides just as a way to live easy. With all the clutter from the people who don't need it, it should be draining money from the government and making people who actually need it unable to receive service. Government should increase the regulation required and find a better process to select people who actually need help.
ReplyDeleteI definitely agree with your position, although I didn't realize how bad the statistics of this situation was. I think that the availability of welfare should definitely be decreased as, like you said, 20% of those on welfare have been on it for five years or more. 20% is a very high percentage and it would seem that less than that actually are incapable of receiving an income. In my opinion, welfare should not be free. No matter how little one can contribute to society, they should still contribute, or have only a certain amount of time on a grace period of a true welfare program.
ReplyDeleteWith the Government in debt i do not believe that welfare should be offered to anyone that is physically or mentally able to work. if you are able to get a job anywhere then you should do so, by providing welfare we make them lazy and unwanting to get a job. I mean, if your being payed to sit around why not? by removing welfare or workers comp. people would be less lazy and more willing to work hard. the statistics you provided prove that people aren't using welfare to survive or make due, but as a source of income to feed off the hardworking. if you are able to work and choose not to then you shouldn't be bailed out, because its your own fault.
ReplyDeleteObviously, people free-riding on the welfare system is a huge problem our country faces. With that many people gaining benefits from the program for over five years, it is apparent that they are abusing the system. Yes, some people may need the assistance, but not for that long of time. I think the restrictions on receiving welfare should become a little more strict to fully rid the possibility of abusing a resource some actually depend on.
ReplyDeleteI believe that it is important that there are specific regulations on welfare because people do take advantage of it. Essentially we are helping those who don't necessarily need it, but then not helping the ones who are actually struggling. I believe it is important for one to get back on your feet but once you're there it isn’t welfare’s responsibility to baby you all the way. I believe that the focus shouldn’t be on welfare but helping them find employment instead because then they wouldn’t need this crutch.
ReplyDelete